bcmom

Due to security issues, I would be prevented from uploading information even if identifying information was redacted. But I can type in the information: Of the upper right side of the letter, it reads: Notice CP216F Notice Date July 3, 2003 Employer ID ##-####### Tax Period October 31, 2022 Form 5500/8955-SSA Plan Number 001 To contact us Phone 877-829-5500 Under the client name & Address, it reads We approved your request for an extension of time to file your return File your return by AUG. 15, 2023 The 5558 was filed with the Tax Period 12/31/2022 and requesting the extension to 10/15/2023. We have been instructing clients to call the IRS. When they have, the IRS corrects the information while on the phone and advises the that a new corrected letter is being issued and mailed to them.

We've had several client receive letters from the IRS approving the 5500 & 8955-SSA extensions through 8/15/23. The 5558 was submitted for calendar year plans Ending 12/31/22, but the approval letter states the Tax Period as "October 31, 2022" and "File your return by AUG. 15, 2023". Has anyone else seen this? Is this another IRS computer error?

Our office is upgrading to Office 365. Since upgrading we're getting memory and runtime errors with Relius Admin when trying to access census or transactions, run reports and tests. We on version 2021.0.0. My computer still has Office 2013 and I don't have any issues. We've contacted Relius and they are not aware of any issues. Is anyone else using Office 365 and Relius Admin? Are you having any problems?

I had a plan with more than 100 lives that would soon require an audit. The plan was then amended to exclude union employees. This exclusion kept the plan under 100 lives and thus avoided the audit requirement. It seemed like a "clever" method of avoiding an audit, so I verified it with the DOL. It took several calls up the DOL chain, but they confirmed that the excluded employees were not in the count. The only employees who remained in the participant count were those who had an account balance.

Yes, its a testing method and not an allocation method. I submitted an incident to Relius to see what they say. My guess is that it can't be done. I've never used it and wasn't aware it existed. I don't recall this method discussed at any ASPPA sessions.

I have a straight profit sharing only plan where the prior TPA used the Accrued to Date method for cross testing. I don't see where Relius offers that method. If it does, where do I code it?

401(k) and Profit Sharing Plans with life insurance filing a 5500-SF. Are the insurance premiums reported as an expense? If yes, on which line? Or is it netted out of the gains on line 8b?

Thanks to both of you for your help. Glad to hear the voices of people I trust confirm what I thought was correct.

Mike - The PEO's 401(k) plan allows for employer contributions, but this company does not make any employer contributions to the PEO. Tom - The PEO's 401(k) is definitely a calendar year for all purposes. The client's PSP is a 9/30/16 year end, but compensation and the limitation years are both defined as calendar year. So for my 9/30/16 PS PYE, I'm using the 2015 calendar year comp for contribution calculations and testing. So do I include the 401(k) contributions in the average benefits test? This is the 1st year I'm working on the plan and I can't tell what the prior TPA did. The PSP by itself is not Top Heavy and from the information I see, it probably is not Top Heavy if I were to aggregate. Another twist to this is that the PSP excludes bonus, commissions, holiday and vacation, so I am still assembling data to be sure it passes 414(s). So with the assumption I needed to test the 401(k) contributions with the PS, I plan to use total comp for testing purposes. If I don't have to include the 401(k) contributions, then my testing comp will depend on the 414s results.

The client is part of a PEO which handles all the HR functions and paid through PEO. Employees can make 401(k) contributions to PEO calendar year 401(k) Plan. The client sponsors a separate PSP for employer contributions. The PSP is an off-calendar year plan that uses calendar year comp for contributions and testing. The PSP contribution is cross-tested. I believe I need to include the 401(k) contributions for non-discrimination purposes and the 401(k) account balances for Top Heavy Testing. Is that correct?

When calculating the maximum permitted loan after a loan is defaulted, I can't remember if I should add the current value of the defaulted loan (like I would a active loan) to the investment balance before applying 50%? Example: Ptp defaulted on loan in 2015 and has no other loan. The defaulted loan value after adjusting for interest through today is $2000. His vested investment balance today is $20,000. Is his maximum available loan: A. $9000 = [($20,000 + $2000) *50%] = $11,000 - $2000 or B. $8000 = ($20000 * 50%) = $10,000 - $2000

So since Emancipation Day is celebrated on Monday 4/17/17, is the filing deadline for 6/30/16 5500 forms 4/18/2017?

Thanks Kevin. That also helps supports this since McKay Hochman documents transitioned to ASC.

I know I wanted the document to include bonuses upon failure of 414(s), but that doesn't make it correct. So, I'm glad you agree that I should include bonuses. Each post I read on time this topic came up with another "what about this" question and without a clear answer. Good question and I think your question helped me with the answer. The deferral rate exceeds 5% for all but 1 person (there's always 1). This is a Basic Match and that 1 person deferred 5% w/o bonus and 4.48% with the bonus. So the SH Match on the 4.48% rate using the comp with bonus will give the ptp an additional SH Match of $90, but if I calculate the SH match on the 5% rate using the comp with bonus, the SH Match gives the ptp an additional $240 in match. I think you're correct in that the ptp gets a QNEC of $150 ($240 - $90) because the definition of Comp under the SH section says that the comp used must permit the ptp to defer at a rate that allow them to get the maximum Match. So, since the ptp deferred at 5% w/o bonus, they clearly intended to defer at the rate to get the maximum match, so she need to get a QNEC of $150.

I have a 401(k) Safe Harbor Match Plan that excludes Bonuses. It fails 414(s) for 2016. The Plan is a McKay Hochman non-standardized prototype using Basic Document #03. The plan allows for exclusion of bonuses as long as compensation is tested under 414(s), but I can't find where it addresses what to do if 414(s) fails. If anyone know where fail safe language is to permit full comp, can you point it out for me? If there is none, can I amend the plan or is it just no longer a Safe Harbor Plan? I know the topic has been addressed before, but there seems to be no definitive answer.