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Mike Preston

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Everything posted by Mike Preston

  1. Mike Preston
    Yes, it is done all the time. Shouldn't be discriminatory in application.
  2. Mike Preston
    You might want to send the new information regarding his never been married to whoever at the client is in charge of communicating with the health plan. Your client may be under a contractual obligation to do so. Seems like healthcare fraud, at the least.
  3. Mike Preston
    Almost all loan provisions are like AAMCO; each one is independent of the other. But, yes, they can apply to such a loan.
  4. Mike Preston
    Plan provisions can mandate distributions at retirement age. If it does, and the person has reached normal retirement age, and the person is missing, the plan can force out the monies.
  5. Mike Preston
    Technically, yes, yes. But should it?
  6. Mike Preston
    You might look in the plan document to see if it incorporates language specific to this issue. In the absence of specificity you might nonetheless find language that allows that approach.
  7. Mike Preston
    Thanks. Now we need a document that does the same thing for forgiveness calculations.
  8. Mike Preston
    bump
  9. Mike Preston
    Not sure. We here on the left Coast have come to think of 11g amendments as additional layers rather than incorporated provisions. I think it also goes to retention of reliance. It depends on what is being changed/added, of course, but if I want to eliminate the last day requirement for a specific set of participants for a single year I think 11g in lieu of creating an individually designed plan.
  10. Mike Preston
    A little late for this client, but Kurt Piper and I have recommended in our presentations on PBGC terminations that the standard language of the NOIT be expanded to provide a Notice of Annuity Information.
  11. Mike Preston
    Spitballing with respect to use of an 11g amendment in lieu of an amendment to delete last day rule.
  12. Mike Preston
    The one year rule has never existed in a defined benefit plan. If you read the Code carefully it actually goes much further: effectively a "forever" year rule. The IRS came out with a non-sensical TAM that lowered "forever" to the five year rule, but I won't look this particular gift horse in the mouth. Loosely translated, they reasoned that if a five year rule applies to defined contribution plans it is reasonable for the IRS to apply the five year rule to defined benefit plans, too. But the ruling says that plan provisions can work in favor of the "forever" rule if they chose, so the advice to check with plan counsel is wise. I'll try to attach the TAM. I got a copy of the unpublished TAM from a lawyer at the PBGC about 10 years ago who said that until the TAM was issued the PBGC was bound by the Code (the "forever" rule). I think you will find this in the Code structured as the forever rule is the default, but In the case of a defined contribution plan the five year rule applies. So, DB plans are left with the forever rule. Or at least they were until the TAM. TAM - Partially vested P_1.pdf
  13. Mike Preston
    Spitballing..... Could an 11g amendment made during the 8 week period help?
  14. Mike Preston
    So............ 2019 Self-employment income up to 100,000 can be used as part of the calculation of maximum amount to borrow (which is times 2.5 divided by 12 equals 20,833.33), right? The forgiveness attributable to 2020 self-employment income (assuming annual income of greater than 100,000) is 15,385 (which is 8/52 * 100,000), right? EDIT: This paragraph made no sense as initially posted: So, a sole prop without any employees would need to find $240 in other eligible payroll expenses just to be able to qualify for forgiveness of the loan amount, right? And that assumes rent and overhead bump the forgiveness amount up from 15385 to 20833. So, those that normally work from home (so no rent) may not get there. While it isn't the end of the world having the ultimate forgiveness be less than the initial loan amount (one just pays off the remainder of the loan based on a 1% rate), it is not what sole props are expecting. I assume that we will get guidance at some point as to exactly how one goes about establishing a self-employed's 2020 self-employment income eligible for forgiveness.
  15. Mike Preston
    Funding on 401(k) using PPP loan Found here:
  16. Mike Preston
    Larry, thanks for posting that guidance. I don't see any mention of partners in a partnership. Do you think the prohibition referenced in this document targeted at those who file a 1040 Schedule C also applies to partners in a partnership?
  17. Mike Preston
    Aren't you off by a year?
  18. Mike Preston
    I found this in the FAQs: 15. Question: Should payments that an eligible borrower made to an independent contractor or sole proprietor be included in calculations of the eligible borrower’s payroll costs? Answer: No. Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs. However, an independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements. I don't see any mention of partners in a partnership, And this is just addressing payroll costs. Could it be that one can't use amounts paid in the determination of the loan, but those amounts qualify for forgiveness?
  19. Mike Preston
    Couple of things. By now you've seen the link to the article saying 100% of contributions to a DB plan constitute forgivable monies. A bit agressive for my blood. Agreed? Also, can you identify a specific cite where they disallowed retirement benefits for sole props and partners? What if DB plan jas sole prop and one rank and file? Part allowable, part not? Is the disallowance solely with respect to forgiveness but includable in maximum loan calculation? Oy.
  20. Mike Preston
    I think I posted that in another thread.
  21. Mike Preston
    https://www.bpas.com/blog/cares-act-2020-paycheck-protection-loans-funding-defined-benefit-pension-plans-sponsored-small-businesses/ Too rich for my blood.
  22. Mike Preston
    It is the wild wild west. Nobody knows so all sorts of things will be talked about.
  23. Mike Preston
    Where is the article published? Or do you have a link?
  24. Mike Preston
    Does the client's business have any employees or partners?
  25. Mike Preston
    From your fingertips to the IRS's clarification task force (assuming there is one).
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