Mike Preston

Sorry, but the qualified status of the plan does not impact minimum funding or excise taxes. The semi-good news is that the 2019 plan year contribution due date is extended by CARES to 1/1/2021, although it will be a bit higher than the amount due on 9/15/2020. Just have to work through the numbers to see whether it makes sense to incur the deficiency and excise taxes or borrow some funds out of the plan, fund as necessary and then terminate. I wouldn't worry about permanency at this point because of COVID-19.

I'd be a bit careful of this as a blanket statement. Sometimes 415 gets in the way.

What part of "They were married three years." leads you to discount the statement's validity or justifies your doubt as to the marriage's validity? Making up scenarios that directly contradict what appears to be simply facts presented by the OP is hardly helpful to this OP or to anyone who might read this thread in the future

No more or less than any defined benefit plan.

In fact, except in limited cases, a DB plan does lack non-annuity payments. It is only when a participant receives a distribution of their entire interest is a non-annuity payment contemplated.

The last time I looked into this I think I came away with the feeling that a QTA kind of backs into the role after an existing client transitions into an abandoned plan and that almost nobody is willing to assume the role of a QTA for a plan that isn't already under their own roof. Maybe things have changed.

Yet another problem caused by depositing contributions berfore the end of the year. The TPA has a chance to recover from an extra 10k deposited after the end of the year. Even if done two years in a row. Is there a broker whispering in the client's ear?

You are wrong.

Never happened before, but we are in uncharted territory.

There is a lot of history to this. Cutting right to the chase, Kurt and I think the best thing you can do is to contact Marty Pippens. He is very familiar with the issue since he was at the IRS when those 415 regs were finalized. Keep us posted.

No. Catch ups must be deferrals.

2009 or 2019?

I just deal in the facts of this event. Lots of employers will be temporarily shuttered. Are you saying you can't see why they should based on what you think should happen or what is actually happening?

Government folk think differently than most of us. We shall see, huh?

But, having accepted the fact that there is a correction, it is not unreasonable to ask for the proper correction. 2% cash ain't it. It is likely to be 25% or 50% QNEC into the plan.

You are kidding, right?

Not specifically, but in this case the late deferrals is the cause of the underdistributions, which is addressed, I think.

Refund is never more than account balance.

EPCRS says, IIRC, you just ignore them.

As an aside 90-49 gives minimal authority to enrolled actuaries to determine deductibility. I know it is sort of off topic, but it provides input by the absence of similar guidance in other circumstances.

So, that would be a yes?

?

Uh, was anybody talking about a SIMPLE or a SEP?

If your plan documents are properly set up, all of the income you discuss is treated the way you want. But your documents may not be set up the way you want. Again, somebody else will probably go into detail.

Nope. You are treating your wife's self-employment income the same as your own W-2 income. It doesn't work that way. You need to start with filling out the 1040SE so you have your wife's proper earned income. Then determine her SH employer contribution from that by using the formula 3%/1.03 * earned income. If you decide to do a 10% profit sharing her additional would be whatever 13%/1.13*earned income reduced by the SH is. Somebody else with more time on their hands will probably go into more detail.