jgb44

BG5150, I have a few situations with slightly different flavors, some cash distribution others rollover. Can you comment on both, if outcome is different. I understand that I should reach out to plan sponsor/participant informing them that the excess should have been cut but if the Form 5330 is going to get filed before any action is taken on their part before then, I am wondering how the reporting would be affected.

For a calendar year plan ADP excess contributions were identified after 3/15, however, when the excess was attempted to be cut it was discovered that the participant had already taken a full distribution of assets due to termination. Please note: this situation is a single Adopting Employer within a Multiple Employer Plan. The question is...what is the appropriate recourse particular to the Form 5330 reporting? Do you report the excise tax amount that would have otherwise been distributed if the assets had not already been moved out of the plan? Something else? Thank you in advance for any comments.

@ Tom Poje - Thank you for the link. Most of the guidance I can find says that the election to defer by a SEI must take place by the last day of their taxable year. I am trying to determine if an election can be made after the last day of the taxable year but before the time their taxes are filed. How can an election be made if a individual has not yet met with their tax advisor to determine what their earned income even is?

Suppose there is qualified plan that is a partnership. A partner may not know his/her earned income until after the close of the plan year. Does the partner have up until their taxes are filed in order to determine the amoutn and deposit any employee deferral or employer contribution to the plan? Or is there other rules that forces them to make this decision earlier? If there is, administrative issues are that earned income may not be available in time for such deadline. Can someone please comment on the administrative timeline for SEI's making a contribution to a plan. Thank you in advance.

I have a Union employee for my test year who has prior year compensation as Non-union > HCE $ limit. Do I consider the NU comp for purposes of determining the Union HCE status? Or do I use $0 as my lookback comp because the EE was not Union in the prior year? Feedback appreciated. Thank you.