steverenner

Thanks for your help. I really appreciate it!

Thank you QG! I reviewed the BPD you attached vs the Adoption Agreement, and everything matches up. What are the chances that you have the corresponding IRS opinion letter in your database? The client adopted the Standardized 401(K) Adoption Agreement. Thank you so much for your assistance with the Basic Plan Document.

I am trying to help a client file through VCP to bring their plan document up to date. They missed both the 2010 and 2016 restatement deadlines. I have a copy of the adoption agreement that was executed in April 2003. I am trying to track down a copy of the Basic Plan Document that accompanies the Adoption Agreement. The Adoption Agreement was sponsored by Universal Pensions, Inc. which I believe sold out to Bisys, who then later sold to Ascensus?? The adoption agreement is the Standardized Adoption Agreement. The bottom of the document indicates # 8016 (8/2001) Anyone out there that might have access to the Basic Plan Document that accompanies this Adoption Agreement?

I had this question posed to me today. A partner over the Age of 50 deferred $8,000 into the plan, and their Self Employment Compensation is $6,500. Can the 401(K) deferral that exceeds the eligible compensation be considered catch up? I am using round numbers here, but if the reduced comp is $6,040, can the additional $1,960 stay in the plan as catch-up?

Thanks Kevin. As I expected.

Solo 401(K) Plan, 2 separate businesses and both have adopted the plan Spouse is on payroll in one business and is the only employee. The other business has no employees. In past years, we have utilized the Schedule C income from both businesses for purposes of calculating the employer contribution for the owner. So this year, Business A has a loss of 30K and Business B has a profit of 50K. My guess is that we need to net the 2 businesses for income of 20K as the earned income for the owner since both companies have adopted the plan. Can anyone confirm this? The plan sponsor business with the spouse as the employee is the business showing the loss.

We have a client that has maintained both a Union Plan and a separate 401(K) plan for their Salaried Employees for many years. The question has arisen from the financial advisor as to whether the plans can be combined to obtain a better price with a new recordkeeper/custodian. Here are some quick details that I am hopeful can help with some advice. Salaried(Non-Union) Plan- 1 HCE, 5 NHCEs Salary Deferral Only- No Employer Contributions have been made for years Union Plan- 15 NHCEs Salary Deferral and an Employer Contribution collectively bargained based on number of hours worked. My concern with combining plans would be Union individuals receiving an employer contribution while Non-Union employees receive no employer contributions. Any input is greatly appreciated. Thanks!

Thanks for both of your replies. i really appreciate you confirming this for me. I reviewed code earlier to confirm. Sometimes when you hear things so outlandish, you start to second guess yourself!

I met with a prospect yesterday who is using an unnamed payroll provider for administration of their plan. The prospect started their plan on 1/1/2015. It is a QACA Safe Harbor Match(100 on 1% and 50% up to 6%) with automatic enrollment at 3% and auto escalation of 1% up to the level of 6%. Two Owners, 10 Employees. Prospect was told by unnamed payroll company that they must stop their deferrals because the plan is top heavy. My understanding is that the QACA SH Match works like the Basic Safe Harbor Match and Non-Elective in that the plan is deemed to pass top heavy unless the client makes additional discretionary contributions. I am still completely confused as to why the payroll company notified the client that they had to stop deferrals(10,000 each). I just want to make sure I am not missing something here. Thoughts on how to advise the prospect on how to communicate with the payroll company? We will be taking over administration in 2016, I am pretty certain of that.

Thanks Lou...I couldn't agree more!

Thanks for your reply. Some of these returns were filed in late August. Seems crazy to me that the IRS can't fix this problem.

Is there any one else out there have clients receiving a 5500 late filing charge notice when they have already received an approved extension until October 15th? I received calls from 5 different clients yesterday that have received both, for extended 5500s that were recently. Should we simply send a copy of the approved extension back with the Penalty notice?

If your year end is 7/30/10, you should file on the 2009 E-Z Form.

Setting up a Profit Sharing Plan that will also be a Safe Harbor 401(K)- 3% SHNE. The business is an S-Corp. Owner did not start taking any compensation from the company until July. My thought was to make the Profit Sharing plan retroactive to 7-1-2010, and then add the 401K and safe harbor provision 10-1-2010. The thought process is to capitalize on the owners comp only being from 7-1 forward, and thus limiting the Profit Sharing that has to be put in for the NHCEs. But then I stopped because I now have the following questions... 1) Will the compensation limit be pro-rated to $122,500? 2) Will the 415 limit be pro-rated to 24,500? If question #2 is yes, then we would make the PSP retroactive to 1-1-2010. It would not be the end of the world if we make the plan effective date retroactive to 1-1-2010, but just trying to shave some $$ off the employer contribution. Using the Corbel prototype document.