thepensionmaven

WE filed 5500-EZ timely, buy computer error not received by IRS, cliennt receive an IRS "love letter" with a 4500 fone. Is there any way to file an amended thru EFAST and file under the Relief Program. Instruction not clear.

Interesting question - not sure of the answer. Form 5500-SF was late, we checked the Box DFVC but have not as yet filed with DFVC. We perused the EFAST website looking for recent filings and had questioned why none of our filings recently submitted were not on our "Submissions" on the EFAST2 website. Apparently due to a software malfunction, our software was turned on "test" mode and EFAST had not passed the filings to DOL. We were advised to refile with copies of the original submission and a letter of reasonable cause noting faulty software and stood a decent chance of no penalty. Question is, since the original submission did not go through to DOL, can we uncheck the DFVC filing and file as initial filing upon resubmission.

Add one more to the list.

Paul I, thanks for the response. This was my initial response to the client However, since the client has not yet filed, in order to get the filing in, albeit late, we were thinking it might be possible to file online, for the "filing received" then, file a paper "amended" with the IRS Form 14703 and a check. With the paper filing, even sent certified, return receipt", there is no official record of the papaer filing being received in quite the same manner as if the filing was done on time.

We have had no problems with this approach in the past However, what about a 2023 EZ Form that has not yet been filed (for whatever reason). File online, then file a paper "amended " as DFVC filing, attach the IRS Form 14-7014 with a check for $500 (of course) Is this going to fly.

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.

I ran across a plan of another TPA who averaged the Schedule C's on the basis the plan calls for highest consecutive 3 year average. I don't think you can do that.

I know he has to take his RMD prior to rollover, I was just thinking if there was anyway around it.We were hoping to get it out of the plan within the next few months. He's got a small balance in his account with Nationwide, the other alternative to take from Nationwide to cover the entire RMD.

Client is a PC, 2 dentists, 15 employees. Each dentist has his own plan. Yes "plan" - that is the way the accountant wanted it. Employees in separate plan, all 3 plans tested together. One of the dentists traansfered a portion of his account to a limited partnership that his son handles. Not getting into prohibited transactions or part-in-interest here, but this owner, DOB 7/7/51 will need to take his 1st RMD at the latest by 4/1/25. We are attempting to get him to rollover his plan's investment in the limited partnership to an IRA which apparently can be done. Question is, can he get the investment out of the plan and into an IRA without having to take an RMD. Once he rolls this out of the plan to his own IRA, it's not an plan issue anymore.

I have a couple of DB plans of sole proprietors, Schedule C. I know the combination of "compensation" for benefit calculation plus contribution can not exceed the Net Schedule C for the year. However, I have seen other DB plans for sole proprietors wherin the contriubtion plus "compensation" exceeds theNet Schedule C. How can this be?

I just got off with the client, after designing both plans, emailing them to the client and of course billing him. I was lead to believe that here's a Dr. who wants to shelter $x, and I designed these two plans based on the guy's budget. From what the client has mentioned only just now is totally opposite from what I was originally told. The client is telling me he's got an inherited IRA that he must drawn down on over the next 7 years. Apparently, the accountant had a brainstorm that the client, (he's a sole member P.C., no employees) gets a 1099R each year for the next 7 years, pays the taxes, then contriubtes directly to the two retirement plans. The funds come to him on a personal level, and the client can contribute this money to his retirement plan. The only problem I see is that this is passive income, so this scheme will not work. I certainly do not relish the idea of being the one with the bad news, especially if I am off base here.