TPApril

thank you for your reply. would you estimate both participant counts and premiums?

Company had over 100 employees from day 1 in 1996. we managed to obtain schedule A info back to 1998 for all carriers [whew], but only 1 carrier for 1996 and 1997 [darn]. That carrier shows under 100 employees. Company does not have records of employee counts in those 1st 2 yrs. Question: Do we just file dfvc back to 1998? Do we file back to 1996 with incomplete info for 1996-1997 showing < 100 employees?

Just looking for thoughts regarding 'minor' infractions - plan was filed with sideways attachments. which situation would increase their exposure to being audited: keeping the filing with the sideways pages or having an amended plan on record. i guess my question is - do amended 5500-s stand out for reason for audit?

403(b) large plan filed 5500 for 2010 and 2011 but not 2009. I dont know why. I believe they must file 2009 under dfvc and pay 2000 but thought i might check for other opinions?

I noticed on the 'DFVCP E-Payment Data Collection' website, page 2, that when you are asked to select 'Type of Filing', that 5500-EZ is an option (in addition to 5500 and 5500-SF). Could this mean we are close to being able to file DFVC's for EZs? Unfortunately this dropdown box does not allow you to select more than one filing in the event your DFVC includes more than one form type (ie 5500 for prior to 2009 and 5500-SF for 2009-2011).

I recall at a session last year that even non-credentialed 5500 preparers are somehow accountable to the IRS for their errors, even though they have no 'initials' to lose. Does anyone recall hearing this and what the penalty would be? Another question - there is a small business owner in my city who verbally calls himself an actuary, and lists himself as an 'Actuarial Consultant'. Is this legal? He doesn't have a single credential to his name. My concern is a lot of bad advice he has been giving in the guise of being 'actuarial'.

With recent mastectomy news (Angelina Jolie), I have been asked about mastectomy benefits and have come to learn there is a law requiring annual notice of such reconstructive benefits. I for one have been covered by these benefits for years by multiple employers but have never seen such a notice. Are these notices being done? Are they being combined with other types of annual notices? Who seems to be taking responsibility for guiding employers about this requirement?

The topic fits my question, though my question is not related to the prior one. VCP was submitted and accepted on behalf of missed rmds. Do affected retirees still need to file a 5329? If so do they file with a copy of the accepted VCP letter, or not file at all?

Company offers two carriers for medical coverage. Each one has about 60 employees signed up. The sum just reached over 100 for 1st time as of 12/31/11 so the question is if there is a need for a 2012 5500. I see some plan sponsors file 5500-s for separate carriers as separate plans but I am thinking that this is one plan because they both offer medical coverage. Only difference is one includes dental and vision and the other does not. what is the general consensus on how to treat this? also, if combining the two carriers for one 5500, does there need to be a wrap document even though they offer the same benefit?

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?