TPApril

Is Blinky OK?

Per CPA of a married couple's plan, for self-employed, 415 contribution limit is apparently based on 'Total Income'. Total Income includes Wages and items on Schedule E such as rental and passthrough, as well as Schedule D for cap gains. The amount that was contributed for the plan exceeded what was determined to be Wages. Self-Employment tax was based on the full Total Income, can contributions as well? I hadn't seen that before. In this case it exceeds what was assigned as Wages.

not sure what you mean?

Doctors' group has one main 401(k) plan for staff and each doctor has separate plan (due to historically having separate plans even though plan provisions and investment opportunities presently mimic the main plan). Eligibility requires 1 yr of svc. I'm wondering - can a doctor start their own plan in the year of hire and make contributions to that plan even though they would not have been eligible to make contributions in the main plan?

Unclear from DFVC FAQ: when paying DFVC fee electronically online, is there a requirement to also submit pdf's of the applicable 5500's electronically, mail in paper forms, or no such requirement? Also, no response from hotline so asking the question here.

Wondering if any other plan has received an approval notice for a 5558 filed for a 6/30/19 plan year, but the notice approves it for the 12/31/19 plan year? Nothing new that the approval notice arrived 7 months after filing 5558 and 4 months after filing 5500.

per Secure Act, safe harbor nonelective plans no longer need to provide the annual safe harbor notice every year. So, for plan that provided notice in 2018 for 2019, no notice will be provided in 2019 for 2020. Question is - does that make the safe harbor nonelective contribution optional because no notice was provided that it is indeed being contributed? Or am I totally offbase here.?

Terminated employees who meet certain requirements are given a stipend to be used to purchase their own medical coverage from one of several designated insurance providers. (if one provider is more expensive ee covers the difference). They are then treated as being within the same group by the provider. At what point is it determined that this is a group plan subject to erisa?

W-2. It appears their W-2 indicates amounts were withheld from pay. Thanks! Okay, so we are nearly 18 months after end of plan year. Gotta figure out which 5330 Schedule.

Small plan, 20 ee's. Just discovered that expected accrued deposit of 401(k) (for owners only) at beginning of prior yr do not match their 5500 as well as personal and company taxes. contemplating 2 options: Amend all taxes and 5500 to match actual deposit Deposit the 401(k) amount (~5000 in total), over a year later

Howabout Form 5558 due date? Considering that a 5500 would be due on a Monday, say the 31st is a Sunday, can the 5558 be mailed the first business day thereafter?

It's a startup plan, no existing document. Intent is to include the two companies with common ownership. I guess you've answered my question, the second company would have to formally adopt the plan sponsored by the company that owns the second company.

Thanks Lou. So no need then for a different EIN to formally adopt the plan?

Company A owns Company B Both companies run separately and have different EIN's. Company A wants to offer one plan covering all employees equally in both plans. Single or multiple employer?

So seems to be acceptable to shorten eligibility and then go back to original one before anyone new reaches 6 months?

At the risk of distracting from my inquiry, may I inquire what happened to Blinky?

somewhat related to this post of 15+ years ago.... 401(k) safe harbor match (small) plan has 1 yr eligibility/dual entry dates. New HR administrator hired and enters new participants 6-months early, on 1/1 instead of waiting for 7/1, contributing 401k and match along the way. Contemplating fixes such as: Amend eligibility to 6-month/dual entry for the year. Amend plan after 7/1 but before next 1/1 to go back to 1-year eligibility but then, it's a safe harbor plan...

So there is no requirement then to provide the total amount of the checks received by the consultant directly to Sponsor (as opposed to recordkeeper's annual Schedule A information)?

I guess this is somewhat of a basic question - are TPA's required to provide the following on an annual basis: - The actual amount of revenue sharing/TPA compensation received - The actual amount of such revenue sharing credited (or not credited) back to the plan's billing If so, is it sufficient to provide such information in the billing, or would it be part of the annual 408b2 disclosure

Plan Sponsor normally charges annual administrative fees to all plan participants. Client has changed tpa. Can same plan sponsor charge the following fees to participants: Plan Document restatement by new tpa when the restatement is not a required restatement but just from changing tpa 'Transfer fee' by old tpa for providing participant data to new tpa

Pre-SECURE Act rule inquiry (based on a fictitious couple): participant dies at age 90 (after starting RMD's). surviving spouse who is the sole designated beneficiary is age 99 in year of death. ULT factor in year of death for participant is 11.4 SLT factor in year after death for surviving spouse is 2.9 So factor in year after death is max(11.4-1, 2.9) or 10.4, which is then subracted by 1 each year thereafter?

Thank you for that link. I'm just trying to find ways for this small business to not terminate their plan. Currently, due to pandemic, the company has zero income and has terminated (not furloughed) all NHCE non family employees. There is no way they will pay for a VCP.

Due to current economic hardships, plan sponsor would like to not make safe harbor contributions for the HCE's (all family member owners) for the prior plan year. Is this actually possible? They'd also like to stop current year to date safe harbor contributions to themselves.

CB - so, consider the owner who has been taking RMD's. For clarification for 2020, under CARES: 1. They take a distribution: Plan purposes: They must take a distribution per the plan so they are following plan provisions. No amendment needed. Tax purposes: They are allowed to roll it over. 2. They do not take a distribution: Plan purposes: They are violating the plan and the plan would have to be amended. Tax purposes: no worries since no RMD required for 2020. If I'm understanding correctly, the CARES act is making RMD's harder for 2020.

There seems to be completely different interpretations about how to treat RMD's for 2020. Disregarding distributions paid out prior to 3/27/20 for now: Are RMD's waived period for 2020? If so, a plan must have some other form of an inservice distribution feature to allow for a payment to be made if so desired? If not, a plan would need to be amended to allow for the inservice distribution if so desired. Otherwise, no amendment is required because there is no option to apply or not to apply the 2020 RMD waiver, like the distribution/loan provisions that allow a plan to pay up to $100,000. Am I on the right track here?