Kristina

Remember, data gathering for audits tends to be assigned to the newest team members. Also, Why are you not verifying the data you received for the other 399 participants? I think you need to prove to your client that you have addressed any and all issues.

If the plan can not prove that a former participant was paid his vested benefit, the plan becomes liable to pay the participant again. Yes, it is a pain to have to keep the paperwork forever, but it is more of a pain to pay a participant twice. A form 8955-SSA with the deferred vested reported as a D could be considered as proof the distribution was made and that the SSA missed something.

A participant is a participant if he has met the eligibility requirements of the plan and entered the plan on the entry date on or following the satisfaction of those eligibility requirements. There is no requirement for there to be any accrued benefits or account balance as of that date or the following plan year end. Count them.

When one completes the 1099R to report the distribution, Code 2, Known exception would apply. Which means no 10% penalty because she is over age 55 when she is taking the money.

The amounts reported on the 8955-SSA are reported to the participant when they apply for social security. One should never tell a retiree that they have more than their vested benefit available. This could lead to lawsuits.

This can happen when the Accountants Opinion is not attached as the AccountantOpinion Attachment Type, such as an Other Attachment Type. Check how the xml file was constructed. I would call EFAST help desk and ask them about the filing, or contact the author of the DOL letter.

If a corrected 1099-R is not prepared and filed, then the IRS will expect the Recipient to show double the distribution on his 1040. The correction of the duplicate 1099R must show all information as shown on the original 1099R, except the amounts are all zeroes.

Losses are not reported on the Form 1099-R. The tax return referenced in the instructions is the 1040. In other words, he will report the full excess deferral as income. Then in the course of completing his 1040, he will indicate there was a loss. The documentation for the loss has to come from somewhere other than the 1099-R

The 2018 5500s for EFAST filings can be electronically filed on 1/1/19, but not before. There are some practical issues regarding the information to be reported on the 5500s. For instance the number of participants on the last day of the plan year and their breakdown by category as well as the plan asset accounting must be part of the 5500 filing. A review of the transactions for the year is definitely required to be able to answer the compliance questions. Only a final or short 2018 plan year can file on the 2017 forms before the 2018 forms are available and then only if the transmission to EFAST is completed by midnight on 12/31/18.

Many plans are filed without the audit report each year. The key is to file an amended filing which includes the audit report within the 45 day period specified in the letter notifying the Plan Administrator of the filing deficiency. File the amended filing with all the original schedules and attachments and including the audit report within the time frame and you should be fine. If the auditor does not complete the report by the time you need to file to avoid penalties, then draft a letter to the EBSA explaining the reason for the deficiency is due to conditions outside the Plan Administrator's control (assuming all data was provided to the auditor in a timely manner) and attach that to the filing as your reasonable cause.

The IRS failure to retain the compliance questions was due to the fact that the OMB had not approved them. So, the IRS hung their hat on Modernization. Alas, there is no money to make the form changes. Wholesale changes that is. However, expect to see smaller changes each year until they get to where they want to go. Alas, planned changes do not include an electronic version of the Form 5558 at this time.

More information about the actual scenario is needed. Are you saying you have deferred vesteds receiving periodic payments? And you reported them as a D BEFORE their final payment was made?

Form 4506 does not mention the ability to get copies of the Form 5500-EZ. It does mention tax returns, but the Form 5500-EZ is an information Return. Of course the From 4506 will help you with the compensation and deduction information for the plan so that may help.

At one time I handled 120 balance forward plans where about half of them needed hand holding and the other half would do things that impacted the plan without telling us. I also did proposals, new documents and plan terminations. When I resigned, they replaced me with 2 people.

Participant records should be retained until the participant claims against the plan are resolved. That could be for the life of the PLAN.

First, the RMD from a qualified plan must be separate from RMDs from IRAs. Second, why is the assumption always that the uncooperative former employee is defying the company by not cashing checks? Am I missing something, why can't there be an electronic fund transfer directly to the former employee's account? It would eliminate complications of health and dementia from the situation. It's not like one has to live in the same city as the bank to have an account there, so the former employee could move anywhere and the link would be through the bank. Third, I'm assuming that the RMD was issued in 2017 since it seems unreasonable to be forfeiting the money in under 12 months. The 1099R has already been issued. They have already been taxed and that did not change the situation.

You do realize that the IRS can connect the dots from the distributions reported on the 5500 series and the 1099Rs filed for the plan year. A proper reconciliation of the assets could contain a proper explanation of the refund. A return of a mistake in fact is NOT a distribution.

TommyGunn13 is correct. There will be a letter asking for the 5500 Series for the old EIN. The IRS has apparently not connected the dots on this, but we live in hope.,

1 - Yes 2 - Yes 3 - How did you get 2018 1099Rs before the instructions were out? Nevermind. Yes, just issue new 1099Rs and tell the Recipient to toss the first one they received, if you have not filed the 1099R with the IRS. If you did file the 1099Rs with the IRS, you must file a corrected 1099R.

I agree with ESOPGuy. It is an ERISA requirement that there be an audit for each plan year. You need a separate audit for each year. A word of caution about following the practices of smaller accounting firms as they are a focus for the DOL in trying to improve plan audit quality.

I feel your pain. This is something that the HR professionals should really nail down at the exit interview, 'What method of contact do you want us to use to provide you with important information about possible benefits in the future?' And 'Are you willing to let us know if you make a change in that method of contact?' (A No would be recalcitrant.)

I'm assuming it has been established that the retiree is literate and understands what he has received. Or that he is not suffering from dementia? Is there no one associated with the Plan Sponsor who could reach out to the man?

File the 2017 PBGC premium now. Easier and you won't have correspondence to deal with when you are trying to complete all those extended 5500s.

I think you mean that the mutual funds were liquidated on 12/28/17. Were the funds received immediately processed to be transferred to the receiving trust? Or were the funds held until 1/2/18 and then transferred to the receiving trust? IMHO, if the funds were immediately processed for transfer on 12/28/17, then you would use that date, with the receiving trust showing a receivable as of the 12/28/17 date. If the funds were not transferred until 1/2/18, then you have a one day 5500 filing for the original plan. Always good to have the transaction begun and completed in the same plan year.

I agree with Madison71. The regulation says, to each participant of the Plan. It does not specify that the participant is a participant at the end of the year. I get that one would not provide beneficiaries who are not receiving benefits under the plan an SAR. The SAR needs revamping, but until that happens it is what it is.