thepensionmaven

That is what I thought, but need a quote - I would think the SEP would be treated as a PS plan under 404, though technically the SEP is not a qualified plan under 401. That's what threw us off a bit. Luckily, the SEP (with a bank, (5305 as they don't even know what an individually designed plan is) was done in 2024 so he can split the deduction between 2022 and 2023. Too many look to the morons at a bank to be experts and take their advice, and the banks just take client's money!

I believe you can't fund a defined benefit and a sEP in the same year. I set up a DB for a client, in December 2023, have been following up for the date of the contribution, client finally returns my call only yesterday to find out he contributed $66,000 to a SEP in 2023. I'm looking for a cite that addresses a DB and a SEP in the same year. If need be, I'm going to have him transfer the $66,000 from the SEP.

C.C. Zeller, thanks. I wasn't sure; we don't need any more IRS "love letters"!

I'm using the client's 9/15/24 extension for Form 5500-EZ, which I have not done previously for any client. Do I check 5558 at the top? I was thinking of checkin 5558 at the top and including the Corporate extension as an attachment.

Plan sponsor is an LLC taxed as a partnership. They sponsor a safe harbor 401(k) with elective, safe harbor non-elective and profit sharing. They are on extension . Plan is on a platform with Equitable. Contributions for the employee are correct. As far as the partners, they always mess up the allocation, Equitable returned some money as they claimed there ws too much contributed to the elective portion; this took 3 months to straighten out. The client continually makes the contribution to the wrong "bucket"and Equitable returned one of their deposits. Maybe a dumb question, but for a partnership, how does one determine the split among deferral, profit sharing and safe harbor? We had advised them that any contribution made during the year go to profit sharing, and then redistributed to their different "buckets." How is it determined how much goes into which in order that the contriubtions for the employees is done correctly.

recently took over a non-safe harbor 401(k). Both ADP and ACP tests for the last several years have failed. Is there a specific time frame to correct?

Pail I, thanks for the quick response. I mentioned, to the other trustee who apparently did not know, as well as the accountant. I contacted one of the participants who works for one of the trustees in same law firm (not my job)- she did not even know she had money coming. As far as I'm concerned, the broker is making money and should be chasing down the participants. I'm concerned about the plan w/o a sponsor, but from what I've researched, they're OK; and about a potential DOL audit before the late 5500's are filed. Of course, it's always the TPAs fault, right?

They have all severed from employment. Some work now or a PC established by one of the partners; other s work for a law firm the other partner joined a partner - this employer does not have a retirement program.

Not clear, I know you can't have a plan w/o a sponsor, but does this also apply to partnership plan? Isn't sponsoring a retirement plan an organizational operation even if partnership dissolves? Partnership filed final return in 2019, plan till has money that has not as yet been allocated , all other funds have been rolled over, Investment broker has not provided any physical account statements, client does not seem to be on top of this Investment broker moved companies, has not cared enough to check whether any accounts are still with the old firm. Filing Form 5500 underDFVC in the meantime; keeping fingers crossed no DOL letters. Is there some sort of penalty for not distriubting assets upon plan termination? Should the termination resolution be rescinded?

As a general rule, o from date of hire through end that year, ie 7/1/22-12/31/2022. The individual did not work 1,000 hours, but did in 2023. Therefore I believe the individual enters 1/1/2024, no deferral from 1/1/24-6/30/204 will start with the first payroll in July 24, probably double up initially then drop her % or $ amount. Of course election forms will be signed for the 7/1 entry. Document calls for deferral changes at anytime.

The penalty for not filing (if not done intentionally, is something like $280, which is no big deal. The interest would be charged from 1/31/22, would the same tiered interest rates as late payment of income tax apply? I would think so.

I'm handling an IRS audit (2021) for a client. 1. How many clients keep a copy of the collective bargaining agreement? I don't know where to tell the client to look. 2. The non-union are all family,(four brothers and a sister); the plan excludes union employees subject to collective bargaining agreement. One of the family members quits and receives a distribution, which he rolled over to an IRA. Apparently no 1099R was issued 3.Despite many attempts to get a copy of the rollover check, the account value as of 12/31/202 was shown on Form 5500-SF for 2021 in order not to be a late filing. Obviously Form 5500 will need amendment. Question - obviously no 1099-R was prepared or filed; is it even possible to file a 1099R currently for a distriubtion that occurred in a prior year? Can a 1099-R be filed currently for a previous years' distribution? The IRS website lists the fines for a late 1099-R- apparently this one would only be $280, but I'm sure they will add penalties and interest? The guy rolled over $1.5M to an IRA. You wouldn't needa 1099R to show a distribution on the 1040, I would think that is the individuals responsibility to show as income and deduct as an expense, but that is his problem.

I should know the answer to this but... Participant hired 7/26/2022, plan has 12 month/1000 hours, did not work 1,000 hours in 2022 Quarterly entry dates, wouldn't he enter 10/1/23? Client completing application now, under the impression he'd be eligible 7/1/24 Can't the participant initially sign up for "x" % to in effect make up for 2023, then back down the %. Plan calls for changes at any time. And of course, he's be due the 3% safe harbor for 23.

Client is a single member LLC organized under the laws of the State of New York. The LLC sponsors a defined benefit plan. This LLC is winding down and the owner has formed a new LLC organized under the laws of the State of Florida. Looking for some sort of sample Resolution for the existing defined benefit plan now be sponsored by the Florida LLC and the assets and liabilities of said plan be the responsibility of the new LL?C.

Client is a single member LLC organized under the laws of the State of New York. The LLC sponsors a defined benefit plan. This LLC is winding down and the owner has formed a new LLC organized under the laws of the State of Florida. Looking for some sort of sample Resolution for the existing defined benefit plan now be sponsored by the Florida LLC and the assets and liabilities of said plan be the responsibility of the new LLC.