Flyboyjohn

In preparing a 5500 for an unfunded welfare benefit plan (where there's no VEBA trust holding any plan assets): 1. No Schedule A (don't report with respect to the stop loss policy) 2. No Schedule H (no plan assets) 3. No Schedule C (since there are no plan assets there are no fees or expenses to report being paid from plan assets)

To be deductible on a 2014 tax return the PS contribution has to be made (deposited) by the due date of the return (including extensions if any). The actual filing date of the tax return is not relevant to the issue of deductibility EXCEPT to the extent it might preclude the "including extensions" extended deadline. So the following are OK: 1. File tax return claiming deduction 2/15/15, fund 2014 PS on 4/15/15 (original due date). 2. File tax return NOT claiming deduction 2/15/15, fund 2014 PS by 4/15/15, file amended tax return claiming deduction 5/15/15 (or any time within the statute of limitations) 3. File extension on 4/15/15, file tax return claiming deduction 4/16/15, fund 2014 PS 10/15/15. 4. File extension on 4/15/15, file tax return NOT claiming deduction on 5/15/15, fund 2014 PS on 10/15/15, file amended return claiming the deduction on 11/15/15 (or any time within the statute of limitations). The problem presented in the post is that since the taxpayer already filed a 2014 return the deadline for funding a 2014 PS contribution became 4/15/15, the original due date and the "including extensions" option disappeared. Accordingly the only solution for this taxpayer is to fund the 2014 contribution by 4/15/15 which the poster indicates is not possible.

Issue 1 Yes, 12/31/2015 is the deadline to sign an Adoption Agreement for a new 401k plan effective in 2015 There is debate among practitioners on the deadline for funding elective deferrals for a self employed person, good practice would dictate at least signing a deferral election form by 12/31/15 Yes, the deadline for funding 2015 "employer" contributions that are deducted on the 2015 tax return can be extended to as late as 10/15/2016 Issue 2 The facts that the 5305-SEP was signed in 2015 and the 2014 contribution was made in 2015 does not result in the SEP being "maintained" in 2015 for purposes of the prohibition you're concerned with. Furthermore, you don't have to move the 2014 SEP contribution out of the IRA, it can remain there even during the existence of the 401k. Just don't make any SEP contributions "for" 2015 during 2015.

Has there been any loosening of TIAA's grip on the annuity values since this thread back in 2011?

A "program" that is 100% employee paid and the employer is simply facilitating the payment of premiums via payroll deduction (sort of like a non-ERISA 403b) is not an "employee benefit plan" and is therefore not required to file Form 5500.

I don't see any reason that the non-profit employer and plan sponsor shouldn't be able to extend the 5500 by filing for a 990 extension (1st 3 months automatic, next 3 months for cause) so long as the employer year and plan year are the same.

Maybe if enough practitioners chime in with their audit cap sanction experience we can decipher the IRS secret schedule.

I have a problem with making contributions for the benefit of an employee who isn't yet a participant, what happens if they terminate employment before reaching the entry date? I vote for either changing the entry date or the definition of includable compensation.

1. No resource to my knowledge. 2. Up to IRS not you to calculate and threaten the MPA. 3. An informal survey at a recent practitioner meeting indicated the largest sanction anyone knew had been paid was only $40,000, interested to hear experience of others. 4. Personal experience indicates local (Virginia) recurring sanctions of either $5,000 or $12,000, no clue how they determine which applies. 5. Wondering if there's a secret schedule of sanctions coming out of national or regional audit cap offices?

It's commonplace for folks to file their returns claiming the deduction and then use the tax refund to fund the IRA by the 4/15 deadline

Follow up: Is it fair to assume that in determining whether the plan exceeds $250,000 at the end of the year it's OK to not include the accrued contribution? So a one-participant plan with $240,000 on 12/31/2014 with a 2014 accrued contribution of $53,000 doesn't have to file a 2014 5500EZ?

If you're filing a late Top Hat ERISA exemption letter you're not filing any 5500s so EFAST2 never becomes relevant. Just send your late exemption letter on paper and pay your fee as indicated in the instructions/FAQs.

I'd be inclined to "correct" the effective date...

Thanks for the replies. I need to go back and read Patterson v. Shumate (the landmark SCOTUS case that talked about bankruptcy protection for "ERISA qualified" plans) because I recall that the debtor in question was the owner of the company and had become the sole participant and the opposing counsel argued (unsuccessfully that the plan was no longer ERISA qualified. SCOTUS seemed to indicate that "once ERISA qualified, always ERISA qualified".

First 10 years plan covered owner and common law employees. 10 years ago all common law employees terminate employment and are paid out leaving only the owner with a balance. Now preparing delinquent 5500s for last 10 years and question is has the plan become a "one-participant" non-ERISA plan eligible to file 5500EZ or does it remain an ERISA plan and need to (able to) file 5500SFs under DFVC?

Did the employer check the "Active Participant" box on the employee's 2014 W-2? Not that it's right but that's how the IRS computer will test for IRS deductibility

The plan is a general creditor of the company, do you know if they intend to file for bankruptcy and stiff other creditors? Plan Trustee has an affirmative fiduciary/legal duty to pursue collection from the company, are the owners also the Trustees? Don't know about "piecing the corporate veil" but think the easiest way to force them to pay personally is to go after them as plan fiduciaries.

PPACA 1411(e)(4)(B)(iii) requires that the Marketplace notify the employer when an employee is granted a subsidy and provide the employer an opportunity to appeal. I have not been able to confirm that any such notifications are being made. 4980H provides that large employer penalties are calculated for months for which the employee "has been certified to the employer under 1411...as having enrolled for such month in a qualified health plan..[and is receiving subsidies]. So does that mean that employers can't be penalized for months prior to the date they receive the 1411 certification?

What am I missing: Employee over age 49 has 2015 gross wages of $26,000 Makes max elective deferral of $24,000 Employer contributes $6,500 (25%) What limit is being violated?

Agree that there are probably a lot of plans that believe they're non-ERISA when in fact they've violated one or more of the safe harbor requirements. But if they intend and believe that they're non-ERISA they certainly don't want to be doing things like creating an ERISA SPD which would be counterproductive. Just do the absolute minimum, bare bones document that the IRS requires and nothing more.

Since the SPD is an ERISA requirement and the plan is non-ERISA no SPD required

I would argue that since 2013-54 only prohibits payment/reimbursement of premiums for individual coverage it is not applicable to COBRA premiums since they relate to a group plan

Is the definition of participant for purposes of 5500EZ qualification the same as it is for counting participants for 5500 or 5500SF purposes? If the doctor is the only employee actually contributing to his safe harbor match plan (although other employees are eligible) is it a one-participant plan?

Agree with jpod that if your one-participant is a W-2 employee and an obvious deferral is withheld from a paycheck you could probably stumble into a PT. But if the one-participant is self employed who's to say when a "deferral" occurs? Isn't it when the owner/business sends the $$ to the plan so in essence it can never be late?

In considering the mindset of the DOL investigators bear in mind that they all participate in the Federal retirement plan and their elective deferrals are deposited SAME DAY so they think "If the Federal government can do it same day shouldn't large private employers have the same capability?"