thepensionmaven

Client's accountant suggested filing "corrected" 1099Rs and sending them in.

Perhaps a stupid question (please don't agree) - how would one know whether these amounts are included in gross w-2or not??

There used to be a deminimus exemption for a plan that had less than ten 1099s.

Participants were given 1099-Rs by January 31; 945 filed with IRS by 1/31/22; client has not yet filed the pink 1099-R/1096. Excuse my ignorance, but what is the penalty for late filing with IRS; can the fine be paid with the submission and on what form, if possible.

Why would they deserve kudos when they are sending out emails concerning 5500s that are not recorded as timely in their database, although they issued Acknowledgement IDs and there is a clearly marked "Special Extension"? Something out of whack.

And of course the client thinks that WE did something wrong.

Two months later, clients receiving emails asking for "missing" 2020 5500s.

Yes, as long as you file prior to receiving any letters for DOL. Agree with Bill, don't wait too long.

I have released a client from my servicing contract and he is asking me to return my files. I know this has come up before, my files consist of paperwork the client has submitted to me (W-2s, K-1, etc), my calculations, my copies of the investment reports I access online. Aside from the client having all this information already, is there any basis for me to send him my file or is this just "sour grapes"?

We were questioning if the participant could have taken a COVID withdrawal from both his SEP and his defined benefit plan.

Accountant is checking as to whether his client could have taken COVID distributions from his SEP as well as from his defined benefit plan. Distributions both taken prior to 12/31/2021. Client was talking about taking a plan loan, which we thought never materialized; I can only assume the client had taken a loan prior to September 30th and has not started repaying. Too late to do anything about it now.

Having a senior moment. Participant hired 1/20/20, EC Period 1/20/20-1/19/21 - 1,000 hours credit. Overlap is 1/1/21-12/31/21, worked 870 hours. Plan defines eligibility for contribution as 1,000 hours OR last day. I think she is eligible 1/1/21, and since employed on ast day of the year, must receive a contribution?

Accountant has a client who is not a resident of the US, but has income paid to her LLC. She is in this country more than 90 days each year. Can she set up a qualified plan for the LLC income.

Participant terminated, entitled to payout, check was requested from the annuity carrier. Plan Sponsor receives the 1099-R showing Plan Sponsor as the recipient, with the gross amount the participant is entitled to, and an amount withheld. The broker must have established the annuity in the company name and not the name of the Plan. I would think the annuity carrier paid the IRS the withholding but under their EIN. Annuity carrier sends Plan Sponsor a net check, sponsor deposits into their corporate account and pays the participant, cross referencing the whole transaction. Now participant is calling client complaining she ever received a 1099R, and client comes to us to prepare. I believe that since withholding already paid, I would show the net distribution as the gross and the net amount taxable with $0 withheld?

How about "The Plan Advisor" withe the caveat "we are not investment advisors"

Thanks for the replies, it turns out the whole account is part of the principals account balance.

I was afraid of that; now to go back at least 10 years to redo.

Strategy goes back to the 80s, recently took over a client with profit sharing plan, owner and employee are the only two participants. Employee's funds are with a mutual fund only; portion of the owners funds are invested in a limited partnership. I know an independent appraisal is needed, but would the whole partnership be part of the plan investment or just the ratio of the original investment to the total? Prior TPA used the full value.

I posted on the same subject last week. Same situation, we responded to the email, complete with DOL acceptance and included our FEMA attachment. Every EFAST filing has been check marked "Special Extension- New York - Hurricane Ida- FEMA- 4615-DR", but due to these new emails, will add separate attachment advising same information. Whether they are testing a new system or not, this is irritating to the client and they pass it on, when a client receives a letter or email. And who do they blame? The TPA, of course. Would expect this from IRS, but not DOL.

We were advised to add "FEMA" to the special extension line, just for that reason. Clients have been receiving emails from DOL which is surprising as everything goes through EFAST, which is DOL related.

I have included an attachment for 5500-SF as well as 5509-EZ that I file with the Forms, a Murphy believer. What do you tell a client when he receives an IRS or DOL love letter and the first response is "my TPA must have done something wrong for me to get this letter"?

A 401(k) participant COVID'ed her loan but did not start repaying until September, 2021 and terminated employment 12/31/2021. She has not received a 1099R as of yet; for the deemed distribution - accountant has asked us to prepare. We have the outstanding balance as of 12/31/21, but how would you take into account the payments only made in the 4th quarter?

Parts of New York have the Hurricane Ida-FEMA extension through February 15, 2022. We have correctly marked under Special Extension - "New York-Hurricane Ida-FEMA-4615-DR" and so far, only one client has received an email from DOL advising that Form 5500-SF for 2020 has not been received, although it has been. We have the DOL acceptance of the filing, answered the email and attached a copy of Form 5500-SF. Anyone else receive a similar DOL email or letter?

Accountant asking for advice, told him to consult an attorney. Apparently an old client sponsored a profit sharing plan, back in the 70's. Original plan doc, nothing since then, no 5500s, owners died about 5 years ago, no successor trustee, spouse of one owner still around. All employees paid out in the past. Funds with bank, they want to pay the account and get rid of it. Less than $100k, to one of the owners, so he says, wife is beneficiary, not a trustee. The bank looking for corp resolution naming the trustee so they can pay out the account. Not getting involved, just asking if anyone has ever had such a situation. I don't even know what an attorney would advise.

No, and I do know the rules concerning this issue.