TPApril

While I don't recall our source or reasoning for determining this practice, as regards to late H&W plan 5500s, we typically send out only the past 3 SAR's, and even then, we don't ask the sponsor to reconcile who receives them but have them send it out to the recipients of the most recent 5500.

Nope, came out of company general account

On this same line of thought on a plan with immediate entry for 401k and then 1 year wait / mid-year entry for match, say the plan used compensation from date of participation, would the 401(k) used to calculate the match also be from date of match participation, or rather from the beginning of the year?

That's where I'm not clear. Their W-2 pay included the dollar amount of the gift (with tax), and there was also 401(k), but they received the full amount of the gift, and also the 401(k).

Great recommendation on adjustment to definition of comp. I asked them where the 401k came from and they said from the ee which didn't make sense to me. So the idea of treating it as an employer contribution of sorts makes sense to me. However there was match allocated as well. Complicating it even further was that those who had already reached their 402g limit did not get a 401k contribution (but did get a trueup match). So, treat both contributions as is as some kind of corrective ER and that's that? Only 1 was HCE so don't think there is discrimination issue.

401k Plan uses W-2 Comp. Numbers below are made up for example. Company surprised its staff @ annual holiday party with $400 ipads. On 1/3 of next calendar year they processed corrective payroll for the value, including tax ($424). They also included 401k. So an ee with a 10% rate had $42.40 in 401k put in. Something sounds fishy to me. Should the payroll have shown 424/.9=471.11 since 471.11-47.11=424? I'm seeing circles and wondering if the 401k was calculated correctly, let alone the right dollar amount used for W-2.

Now that the 5500 extended extension is not in effect, is there still an extension on corporate tax returns, and by default corporate contribution deadlines?

generally when we create a wraparound plan doc merging H&W benefits that filed their 5500's separately, we file the original plans for the full year as a Final with zero participants in the same year the new plan starts. example: 501, 502, 503 - 12/31/16 filed with count of 150 each 510 - new plan effective 1/1/17. 501, 502, 503 - 12/31/17 filed as final with zero count 510 - 12/31/17 includes all Sched A's is this generally what's done? corollary question: one of the plans being merged is a 6/30 plan. It is now March and we know the next filing will be a final with zero count. Can we file that 5500 (6/30/16) prior to the period actually ending?

It seems that in the old days (10-15 years ago), it was common to find FSA plans filing small plan 5500's with < 100 participants and a Schedule I, often with very small balances remaining in a General Assets bank account. In line with IRS Notice 2002-24 which eliminated the requirement to file 5500 for small Cafeteria plans, it seems many of these plans simply stopped filing, no Final filing, no 4R code. So my curiosity today is, do we revive these 5500's so as to Final them, particularly where a wraparound document has been created which would incorporate this plan? In so doing, should the last filing from years ago be amended to imply 4R? Or just leave them as is from many years ago?

Plan doc terms: Eligible on 1st of month next following 1 year of service Payroll periods: Twice monthly, but paid 5 days after end of payroll, so 1/31 payroll is paid 2/5 Question: Employee is hired 1/15 and becomes eligible 2/1 of following year. Would participant begin participating on payroll paid out on 2/5, or 2/20? Justification for 2/5 is that it is paid after eligibility date. Justification for 2/20 is that 2/5 is based on pay earned prior to eligibility date.

I found a related article put out by ACOPA last year that discusses the use of the maximum allowable excludable period: https://www.asppa.org/News/Article/ArticleID/6278

On the theme of a participant who is considered an excludable employee in the system, but a different scenario.. Employee hired 12/21/15. System is treating him as otherwise excludable for 2016. I generally treat 1/1 as the cut off date. Is this standard, perhaps if hired after 12/15 to exclude them for the following year?

Payroll does not process 401k contributions. They take the percent he tells them and they run it through their system. So contribution was made assuming payroll company was informed timely. Amount was deposited as a 401(k) contribution. W-2 will not match. Is transferring that amount to his ER account allowed? Note that amount is ~$500.

For final payroll of the year, owner increased 401(k) and maximized catchup capabilities - deposit was made. Payroll company would not in turn honor that deposit because the plan sponsor was not configured in their system to allow for catchup. They proceeded with they payroll they wanted. We are at a stalemate. Payroll company telling owner to withdraw that amount but we are saying no. Think it would be fine to submit to tax preparer actual contributions which do not match the W-2? (not looking for commentaries on payroll companies, just trying to describe situation)

Okay, I think I get it, which means i incorrectly described my original question. Case at hand is not ASG but rather LLC where each Partner sponsors their own plan. This would effectively be treated as the LLC sponsoring multiple one-person plans. So in this case, all individual plans must file if the sum of the whole exceed $250K.

What is an example of one-person plans maintained by the same employer? I've just never had accounts such as that.

Thought I'd repost my question as my timing may have been off right before the holiday weekend. Or perhaps it's obvious? Sometimes you just never know.

Multiple Doctors in affiliated service group arrangement, each with their own plan, filing 5500-EZ's. Doctors are tested with staff plan New doctor starts up her own plan. Is there a reason she needs to file 5500-EZ as long as her balance is under $250,000?

I know it's been awhile, but I'm curious whatever happened?

Should the Plan recognizes its responsibility of the RMD for 2016, and issue 2 1099-R's, is it possible the participant will receive 2 1099-R's for the taxable amount, one from the IRA as well? Or is that responsibility satisfied by a letter stating the taxability, and then the recordkeeper could more easily issue the 1099-R for exactly what happened on its end, with the IRA issuing its 1099-R?

Would you suggest that simply the RMD amount would be withdrawn from the IRA, or would you increase with earnings through date of withdrawal since the earnings would not have been included in the IRA to begin with?

Assuming though the employee in question terminated in 2016, and since the distribution was fully rolled over, is it a plan responsibility for there to be an RMD for 2016 even though RBD is 4/1/17 ie is James' proposed solution the correct approach?

Borrower is 50 not taking any loan or distribution from the plan .

Is this new - mortgage companies are now requiring plan documents to help secure a residential mortgage loan that has nothing to do with the 401(k) plan itself? Initially tpa just provided the section on distributions because they wanted to know the availability of funds but they have come back to request the document in full.

I'm seeing a similar 403b loan situation in which the trust itself shows no actual withdrawal of the loan, though an equal amount of the loan is transferred into the cash account. However, interest on the loan is paid back to the participant. Question here though are the 5500 implications - I'm thinking such loans are not necessarily shown on the Schedule H because the amount is shown as a cash asset.