thepensionmaven

Company does not have a Section 125 plan.

DB plan was established for 2018 for S corp; accountant called last week to mention that the was no W-2 for 2018 and wants to use Schedule C income. I would think the plan definition of "compensation" would need be amended as well who would be participating. Would a Joinder Agreement suffice in this instance?

Corp sponsors 401(k) SHM plan, definition of compensation is 415 safe harbor, about 10 participants, including the owner. Box 1 and box 5 of w-2 have different amounts, Code D is $18,500. Accountant not taking into account medical premiums for the 2% + shareholder. Getting conflicting answers, isn't medical a fringe benefit?

Would the maximum employer contribution be the same as a profit sharing plan, ie 25% of participating payroll??

We have a combo cash balance/401k safe harbor nonelective profit sharing plan. The DC plan has the failsafe language. Eligibility both plans, age 21/1, 000 hrs. One HCE, 5 NHCE. One younger NHCE terminated in 2017 so the contributions needed to pass substantially increase contribution as well as benefits. All that is needed pass 401(a4) is one more younger NHCE. Does it matter which one, assuming there are two? BTW, (a) (26) as well as (b) (10) are both passed.

Pulled because the voluntary was an excess contribution. From what I understand, the only taxability is the investment income from the date of contriubtion through current date.

OK, client has defined the excess to be from the voluntary contributions. Since voluntary are after-tax, accountant sees no reason for them to be taxable. ACP test met, knowing the voluntary made in 2018 will be pulled out shortly.

Employer maintains defined benefit and 401K/SH. Profit Sharing is discretionary. How do you handle the top heavy combination? Must a 5% contribution be made to the PSP, or 2%?

I should know the answer, but I see conflicting answers. EOB mentions all service must be counted for vesting purposes; although I noticed the following when I queried online: "Although all service from date of hire must be recognized for eligibility, a plan can be written to ignore years prior to its effective date (or the effective date of any previous plans) and/or years prior to attainment of age 18 for vesting purposes." I was asked to look into having a new plan drafted under the second criteria, now not sure.

A 501(c)(3) Employer maintains a 403(b) annuity with employee contributions only as well as a profit sharing plan with a fixed formula of 3% of compensation. Apparently the two plans were never coordinated and one has recently learned of the other. As far as 5500s, since the 403(b) contains only employee contributions, no 5500s have been filed; 5500s have been filed for the profit sharing plan each year of its existence. We do not handle any 501(c)(3) organization plans, but something seems a bit "off" here, and think it should be corrected, but how???

Have used numerous times, no problems.

Apparently this individual was fogotten, attempting to locate original plan. At time participant terminated, the present value of her accrued benefit was under $1000 (amt was $595). Prior TPA took the position since she never returned an election, her benefit be forfeited. Client received call from this individual asking if she was due any money. Perhaps I should also post on the DB Board?

We terminated a DB plan, that was effective 1986 and froze all benefits as of 1/1/92 for all participants, in 2015. Now, in 2019, the participant comes forward asking about the plan. She was terminated in 1996.Plan sponsor send out notices, certified, return receipt in 1996-7-8. All came back unable to forward. All assets had been distributed and Final 5500-SF as well as Post Distribution Certification have been filed, showing the plan had $0 as of 12/31/2015. What should be done here??

I would go with form 872 as it appears to be a later revision.

Seems to me contributions, knowing this client. They would never think to roll IRA monen into the plan, even if over 591/2. If rollover I see your point, this would not be at issue here. BTW, 20 participants, 3 owners, 5 HCE non owners not contributing, balance NHCEs not contributing. That is how ACP passed.

I don't believe it was stated this was/was not a sole prop plan with no employees. Is not such a plan ERISA-exempt?

Higher deduction usually, depending on age. Other than that, someine wanted to make a fee and /or commision?

This is a cash balance plan for a sole proprietor with employees. We completed the annual contribution calculation, client asking if contributions must be made in cash or he can transfer some personally owned securities into the plan as contribution. I'm leaning towards "no"; the doc makes no mention.

https://www.irs.gov/pub/irs-irbs/irb19-19.pdf, page 1086

I used to work for a consulting firm that prepared "conversion minutes" to convert a DB into a DC plan as long as the DC retained the same BRF. No new plan, still #001, name change of plan and account, from which individual accounts established according to the PVVABs. I add this was only done on a one life plan.

This does happen quite a bit. We have filed as EZs as the fee is less; $500 each year vs $750. The file SF for the future.

Yeah, is he correct? Mentioned same for 125 plan

I'll take one, TY.

Ran across a prospect that sponsors a Prem Only Plan. Account says no 5500-SF needed.

Justsnotheradin - employee plus safe harbor only. I thought I heard a presentation a few years ago (ASPPA?) the definition of comp for initial year participation as stated in Contribution section of a VS plan applies for SH as well.