thepensionmaven

Also, if there is reasonable cause why 5500s filed late and Sponsor does receive notice frm IRS; and no DFVC filed by due date, does Sponsor file at that time and claim reasonable cause when IRS Letter received?

Similar question, but CPA asks... Given IRS penalty for late filing $25 per day, 5500-SF not filed by 30th day after date 5500 due by extension date, does Employer/ Plan Sponsor file under DFVC and pay $750 with 5500-SF, check appropriate box on the Form now or wait until IRS Notice (Letter) asking for the filing. Also asked about the time-frame between filing due-date with extension and date IRS queries the filing. I assume CPA asking what would happen if Sponsor were to file under DFVC after receipt of IRS asking for the Form as long as no DOL letter received.

Why would a TPA have the file Form 5500 instead of Form 5500-SF for a small, 8 participant plan, other than to charge a higher fee?? The investments are with a broker.

Successor plan vs replacement plan? Difference? Can the employer terminate and rollover existing plan and establish new plan eff 1/1/17 as a "qualified replacement plan."

I was under the impression there is a 12 month window between the time an employer terminates a 401(k), and establishes a new 401(k). Is there such a cite and where? I have a heavy hitter of a broker I deal with that is telling me her checked this out, and, as long as the existing plan is terminated and everyone rolls over to an IRA before 12/31/, the employer can establish a new 401(k).

Company B wants in with the company A plan, which is a Volume Submitter with Datair sponsor. I do not see why not, as long as I prepare a Joinder Agreement, effective 11/1/2016 adding Company B as a participating employer. BUT, Company B is coming off the MEP November 1st and wants to Join Company As plan immediately. Again, I do not see why they can not, as long as we amend the plan effective 11/1 to allow them to come in immediately. I have not handled the MEP concept before this joint. Thanks.

Company A is wholly owned and owns 70% of Company B. Company A has a safe harbor 401(k) We administer the plan of Company A Company B participates in a MEP sponsored by a payroll company, also a safe harbor 401(k). Effective 11/1, Company A is severing their relationship with the payroll provider and wants out of the MEP. If we add a joinder agreement to the existing plan of Company A, can we include the participants of Company B into the plan of Company A? As of 11/1 or must this be done on a calendar year basis? What are the mechanics to get this done??

Client PC currently maintains a cross tested 401K profit sharing plan; adopting cash balance for 2016. Accountant mentioned he should terminate existing 401k and roll over to IRAs for all and adopt new 401k in combination with cash balance DB. because sharing contributions rise dramatically each year as client only participant getting more than a money market ROR. Says the participants have chosen money market investments. Does this make any sense?

Recently took over a large 401(k) plan too late in 2016 to not have the 10% excise tax apply. Several of the HCEs will have to take distributions of their excess in 2016. Over 100 participants, must do the Independent Auditors Report. Accountant wants us to set up a liability as of 12/31/2015 for the excess and show as such on Form 5500. Also, since we did not have any of the information necessary to do the ADP test as of July 31, we filed for an extension only for Form 5500. Is form 5330 due for 2015, or for 2016 when the funds are distributed? Any suggestions?

Cite?

He just wanted to set up prior to end of year for 2016 and just funded his 2015 DB. Obviously did not have to be "safe harbor"

If they go the QNEC route, will that save them on the 10% excise tax?

We recently took over a large safe harbor 401K in which the employer amended the plan prior to us, to eliminate an hours requirement for entry, effective 1/1/2014. On May 1st of this year, the client tells me they had sent a "maybe" notice to the participants in November 2014 for 2015 but no-one seems to have a copy. August 1st we received the W-2s for 2015 as well as census data. Of course ADP failed. Question, and I haven't done this in a while. This is why we do Safe Harbor. The plan allows for Roth contributions. Can the HCE employee contribution overage be recharacterized as employer contribution to the accounts of the NHCEs to the extent ADP is passed; and if ADP is still not passed, an additional QNEC would be required???

PC is on calendar year. Owner only. I guess this is really no question at all. I was thinking more in terms of a safe harbor plan, as this would be a new plan for 2016. If the broker needs a token amount to open up the account, I assume that would suffice as long as the client made his total $24K by 12/31

One person PC, owner wants to set up 401(k) by 9/30. Question is, does this have to be partially funded at set-up( $1,000 or whatever minimum the brokerage firm needs) and the balance by 12/31? I would assume he does 't have to make the full contribution at this time.

Client has terminated PC safe harbor 401K because he can not afford the match. He has matched 3% non-elective through the date of termination, 8/31. Must he do the 3% non-elective on W-2 for the full 12 months or just for the 9 months through date of plan termination? I believe only through date of termination.

Thank you. The CapA seems to think the reportof the investments is to be certified by either a bank or an insurance company prior to the CPA audit report. The investments are with New York Life, the firm that certified to the investments is the firm that prepares the reports and Schelues necessary for the preparation of the 5500s. Doesn't a bank or insuance company have to sign off on the investments held by the plan before CPA can certify the whole report?

We have a 401K safe harbor match 100% of the first 4% of W-2, sponsored my a mgmt company and including 10-11 subsidiaries. Combined there are over 100 employees. I would assume that after weeding out those who do not meet the age/service rests, if there are still over 100 eligibles, we would need an independent auditor report??

Premiums not paid from side fund, but from company contriubtions. Owner and bene are the plan.

Profit sharing pla with insurance is terminating. The principals are the only participants with life insurance coverage. The policies are in the process of being surrendered and the cash value will be rolled over to one of the plan annuities for distribution. Would the cash value be allocated among all participants or just to the principals who were covered?

S corp

Another client received an IRS Notice because for an "initial return" we checked off 3 participants at beginning of year. IRS was looking for Form 5500 for the prior year (of course there was no prior year) because we had noted the "initial year" of filing. A woman at IRS informed us that in order to file "initial return" there must be -0- participants on the first day of the plan year.

Slightly different question. New plan effective 1/1/15, over 100 participants by end of year Since this is the 1st year, would the 80-120 apply, there were -0- participants at the beginning of the year. Instructions do not specify. Could we file 5500-SF? If not, is the Auditor's report mandatory for the 1st year of a plan?

Plan effective 1/1/14, only principals and wives, so no 5500 filing. 1/1/15, employee eligible and have to file 5500-SF. Box checked for first filing. Q- Because plan effective the prior year and there is a participant count at 1/1/15, the IRS will probably send out a Notice, why are participants and money in the plan as of the beginning of the plan year? And then do the merry-go-round explanations to/from IRS? Suggestions, rather than submit and see what happens?

What does the participant count as of the beginning of year? Is it -0- or a number greater than -0-