thepensionmaven

We had this happen, file an anended to include SB, no problem yet. I think once you file completely, you're OK.

A non-owner participant was told that since she was over 72 she had to take an RMD for 2022, slightly over $1,000. Does this mean she has to continue in the future?

I know the proper procedure. Tried the "proper way with another client, filed plan TIN, plan has no checking account, so IRS can't pull it. Was advised by another TPA firm to run the withholding thru the corp check acct and mention 945 not 941 and that "IRS doesn't care where the monet comes from, as long as they get it" and make sure to properly document your records. My question was, can the same PIN be used for other kinds of withholding? Client aware if penalties as they messed up.

Client has not paid withholding due on participant distribution for 2022. Client received the 20% check from the financial instition, didn't ask anyone what check was for, and deposited into the business checking account. As I was completing Form 945, asked client for dates paid and she tells me it hasn't been. I have called the payment in with EFTPS before, I assume payments made online handled similarly, but 945 withholding. Question is, do we need a separate PIN to make a 945 payment? Accountant tells me the client pays all 941 through EFTPS; accountant has no idea how payments are made with 945, which I find incredible.

I seem to remember that. TX.

Received a referral on a cash balance as well as a 401(k) plan. Cash balance no eligible employees (presumably), 401(k) remains to be seen. My first question to him is the 401(k) "handled" by a payroll company as I refuse to takeover any such plan. Secondly, ADP has no knowledge of the cash balance plan. Third, the cash balance is on a 10/1-9/30 plan year; the 401(k) is calendar. Regardless of different plan years, granted they need to be aggregated for deduction purposes; don't the plan need to be tested together for 401(a)(4) ? Seems like a loss leader.

Hello, I'm a Datair user, former Accudraft user, seriously considering ftwilliam for admin, forms as well as docs. Familiar with forms and docs. How easy to use, has all one needs to do DC an DB valuations and testing? Pros and cons (if any)? Concerned with privacy, you can email me at steve@thepensionmaven.com

Although my reply does not answer you directly, I would consider a smaller payroll company as well as an independent TPA firm. We have had many problems with the payroll companies "administration" that are more thoroughly handled with independent, whom smaller payroll companies have a much more beneficial relationship. Your issue might not rven be an "issue." Just my opinion.

Thanks, agree, had a long talk with the client, who had no idea of any of this until I enlightened him.

Bill Presson, thanks, but may be too late, I received the form letter on my client's letterhead informing me that my services were no longer needed. Ascensus even screwed up that letter, the client apparently never read it, they are asking me to assist in the transition from Hancock, although the funds are with American Funds. Kinda sloppy. Since I am not a record keeper, I have no intention of aiding in the transition, unless absolutely necessary. Will let you know if it is too far in the game to do anything. Never great thing to lose a fantastic client; especially after 10 years. I could understand if I "messed up". I've been in business 35 years, am not a "newby" and see this all the time. Not bragging, but generally I lose only the clients I need to, generally by 3x my fee so they think it is their idea to leave me.

I was just advised by my client that, per his broker (that I have done business with for years) he is changing plan investments from American Funds to Vanguard. Apparently, the only way Vanguard will accept new business is to insist they handle the plan administration through a party they contract out with, Ascensus. This is an excellent client, pays his bills on time, no problems with the plan. I'm sure he did not know any of this. My client just sent over the standard form letter informing me of this. We all lose a client now and then, but to find out from the client who advised us of this and not the fellow I have been doing business with for years I find highly unethical. Possibly good for the client, until he discovers what Ascensus charges for the administration of the plan. Perhaps this is just "sour grapes" on my part and my only recourse would be not to do any more business with the broker.

The annuity is owned by the plan.

Not sure this was done correctly. Participant terminated, plan funded with annuity and life insurance. Insurance policy is the only distribution, the policy ownership and beneficiary were changed to the individual. Of course, the insurance company does not prepare 1099s. From the broker: "What we did was, take the cash value as a distribution and rolled it into the participant's annuity contract." Insurance company told the client this is an unreportable transfer from the life insurance policy to the annuity. Isn't the cash value taxable??

Agree with Luke Bailey.

Apparently, the withholding tax on a distribution made in 2021 was paid in July 2022. How would Form 945 be filed, on a 2021 Form 945 showing amount due? How would IRS know the tax was paid and when paid, or is it up to the client when IRS sends a notice. I don't know if there is a penalty for late filing.

Accountant paid the withholding for a participant in 2022, but payment was for a 2021 distribution. How to handle? Client knows there will be penalties

Thanks.

Never done a calc for April 1st, always calculate for my clients to take by 12/31 of the year of their 70 1/2 (72) birthday. Which account balance is used for the 4/1/2022 distribution? Obviously the second distribution by 12/31 is based on the 12/31/2021 account balance. But what about the annual 2022 distribution based on 12/31/2021 account balance due by 12/31/2022. Thanks.

Accountant mistakenly gave 5% owner of LLP us date of birth which turns out to be incorrect, 11/11/49, but accountant gave 11/11/50. No previous distributions based on his being age 72 in 2022, this would have been the 1st RMD. With the corrected date of birth, don't we need to go back to the old 70 1/2 and recalculate 2019, 20 and 21?

For a plan effective 1/1/22, under SECURE, does the document need to be signed by 12/31 or would the tax deadline suffice?

I'm sure there will be some who disagree In the past, I have seen money from one plan transferred via trustee-to- trustee transfer from to another, as long as this is done prior to end of year. You did not say the CB document had as yet been prepared, get it done ASAP and treat the excess as the initial contribution; and be glad no other participants. I can not say whether this will "fly", just that I have see this done. I assume by the term "solo 401k", you are speaking of a brokerage house prototype, they may not allow such a transfer and give the client a 1099; just make sure Code D. FWIW, the term "solo 401k" was invented by brokerage houses to make prospects think this is a nee type of plan. We all know it is not

We administer a 401K Plan that has owner and spouse as participants as well as rank-and-file. Husband died 5 years ago, and his account is still open. Fund-holder will not permit rollover of deceased participant's account into spouse's. I do not see why not; when I asked the fund-holder (in this case Voya), all they could tell me is "no..we can't do that." I see no reason why not. Am I missing something or is just that Voya will be losing out on a fee?

Yes, I called, thanks.

Agreed....always better to use the exact W-2.

Client paid 2x for one filing in error. How do we request a refund? There is nothing on the DOLs DFVC webpage; the client's receipt mentions the Office of the Chief Accountant, which of course is a recording asking to leave a message and "we'll get back to you." Keep calling? Any other suggestions?