TPApril

this is an IDP, no prototype

Is the timing of depositing match generally a part of a plan document? in this particular case there is nothing in the plan document that indicates how to deposit the match or whether to do a true up.

Alternate scenario: ee meets max $17,5 limit midway during the year. 4% of pay has been given each period. EE is eligible for full 4% of full year comp but it has not been met when max is met, so ee is given additional 4% on every payroll after that, even though no more 401k. In the end, match is correct with no true up necessary. is this allowable?

I have noticed two things. 1) There are flex bene plans filing 5500s but only submitting the first two pages with no schedules, checking General Assets. Is this still required? I think not as per Notice 2002-24, but then why are they still being filed? 2) There are small flex bene plans filing 5500s checking Trust, with only Schedule I, showing account balances that are relatively small I think due to timing of payment of premiums. I am guessing this may be a checking account issue or whose name the checking account is in? Is there a way around this?

Company exceeded 100 employees in 2011. 2012 will require their welfare benefit plans to file 5500. Now that it is 2013, can they proceed with filing as a wrap plan for 2012? Do they need a corporate resolution to do so?

Any chance there is a deminimis amount on missed RMDs? Missed RMD due 3 days ago (darn it) is $850, penalty then $425. Assuming not, can the 2012 form 5329 be filed for this missed 2012 rmd due in 2013, since the distribution counts in 2013 taxes, and can it be filed now so that an acceptance or rejection of the plea letter attachment can be received sooner rather than later?

I will confirm. Separately however, you bring up a good point on how to best correctly treat this situation in general for prior years. Sounds like you are suggesting file as its own plan through last overdue year in which case to 'final' it and submit all as DFVC. Then proceed with including it once wrap doc (& spd) are amended. This could get costly.

Thanks much. Say they decide not to revisit the past because the administrative costs appear excessive to them, in a worse case scenario where the plan is audited and they then amend all past plans in response, what kind of monetary penalty could they expect?

Yes they did. Good question, I should have included that information.

Company has fully insured wrap welfare plan and has consistently filed one 5500 for medical, dental, life, etc. each year. They also have a pre-paid legal services that they were not aware was to be filed as well. They would like to incorporate it into the wrap plan and begin filing moving forward. Question - what should they do about the past prior to 2012? Amend for all 12 years they have had it? Amend past 3 years? Not amend at all but include moving forward?

Any idea where to find a resource on the actual accounting that goes into how an Insurance company fills out Schedule A for experience rated contracts? The 5500 instructions have nothing (they don't even refer to the entire section in the instructions!). Further question, does that section on Schedule A have to correspond to Schedule H or can the accounting approach be different?

Currently putting together dfvc for small plan that didn't file 5500 for the past 5 years. Company did not have fidelity bond for most of that period and just reinstated in 2013.Would we use that current coverage on prior 5500's too? or check off No.

Any update on this thread?

The tax argument is an excellent one, hadn't thought of that but it certainly brings up even more complexities to make this, simply put, not a workable arrangement from many perspectives.

Plan is indvidually directed daily valued plan. Why do they want to do this? They think it would be easier for them. Let's change the scenario slightly - since the 3 staff are on payroll, say that 5% of pay was set up as an ongoing ER contribution from the Employer. Hopefully this would this take away the issue of discrimination of contributions, and then lets focus on this odd contribution source arrangement. To four01kman's question and my stated topic - could such a source for contributions be allowable?

Small business, husband and wife (as support staff), with 3 full time additional staff and new comparability plan design. Income for business is generated through monthly payments by contracts. Can they set up an arrangement so that a specific portion of a monthly payment is paid directly from payor into their retirement plan trust, which would then be treated as Employer contributions for the Plan Year? For instance 51,000 - 17,500 = 33,500 / 12 = 2,791.66. Contract generally pays up to $5,000 per month though changes every month. So, for example first $2,791.66 of one particular contract would be set up to go right into the trust for the husband. If such an arrangement is possible, would it be discriminatory in not putting in moneys on an ongoing basis to the 3 additional staff, since it would then be getting difficult to add in payroll elements to a contract payment?

Thank you Bill - second question is not about different policy years on one wrapped plan Form, but when the reported Schedule A information does not actually correspond to the policy year because they have been advised to run Schedule A based on plan year.

I have another question. I noticed some plans ask their carriers to issue off-year Schedule A letters that correspond to the plan year rather than the policy year which is different. How important is it that the actual policy year be reported? Example: Plan Year - 1/1-12/31 Policy Year - 4/1-3/31 Schedule A letter is issued for 1/1-12/31

What is the risk/exposure for unfunded/fully insured welfare benefit plans that do not file 5500's, or that file with incorrect information such as participant counts?

Thanks, was not aware of that. In such cases, did they allow the tpa to sign on behalf of the plan sponsor without submitting a pdf with signature?

does efast2 report the filing date of the local time zone where the plan is located, or the date based on the time in Washington DC? This is in reference to plans that file late in the evening on the west coast but the date has already changed in the east coast. how do they feel about plans filed a day late - as in 10/16?

I don't have the confidence not to report it. However due to small amount not filing 5330 or VCP. 5 delinquencies from 1 to 25 days late. Deposit has been made, calculated per DOL calculator.

Small plan ultimately had delinquent contributions in 2012 which resulted in a total of $1.25 in Lost Earnings. We will be checking yes on the 5500 but is the Lost Earnings so small that the deposit can be skipped? Less than $1.00 of it goes to non-owners.

This is not my specialty, so no this is not a trick question. Employee in question has been told by FSA provider that only $5,000 per household so the answer is 'no., but in my inexperience I had said I thought they could each deduct $5,000 since they are separate children and they are filing individually.

Howabout this situation - two single people are living together (thereby filing separate taxes), each with their own children. Can they each deduct $5,000 FSA for childcare on their respective children?