LMOC

Hi All, Sorry, crazy day today. I know all of you know how that feels. It does say, CP220. When we called, they said it was a legitimate claim and that letters had gone out every year since, but the client has not gotten them. We were told there is not a statue of limitations on the penalty for late filing. I think CTipper is right, they might be catching up on old fines to get some money in. I couldn't get the client name and info darkened out enough, but I'll try again so I can post it.

HI All, I will post it today. Very interesting letter.

Exactly! It was so odd to me. Thanks for the information.

Uhmmm....I'll review the letter and see. But, how far back can the IRS go on changing a 5500?

Yes, the Plan Sponsor received the letter yesterday. It is actually an off calendar year end Plan, so it was for - 9/30/2006 PYE. There have not been issues with late filing. They are charging $900 if they don't respond of course. The IRS said it made changes, but didn't say what changes were made.. They are sending me the letter so I can read everything. This is so odd.

Plan Sponsor received a notice of a change to the 5500 and a fine for a 5500 filed 9 years ago. Is there maximum amount of time the IRS can go back and change a 5500? I was thinking it was 7 years record retention or 3 years.

Plans going through a conversion to a new recordkeeper need to receive the 404(a)(5) within 30 days not more than 90 days prior to the effective date of the transition or date the first assets to be received? That didn't change with the updated rules, did it? Thanks!!

Thanks so much, austin3515!

A participant in a 401(k) Plan is requesting a hardship withdrawal under natural disaster due to normal rain causing roof failure from rain but not as part of a natural disaster. Would this qualify? My thought is no. Thanks!

I wouldn't do it.

Unfortunately, I am afraid yes and yes it does change is ADR/ACR, unless someone can think of a way to keep it in there.

Over 50 HCE has hit the $265K Salary Limit but has not put in the Catch Up contributions. Given that we look at compensation, etc. at year end, could they put in catch up with salary over $265K now as long as they don't go over the 402g limit and the plan's deferral percentage limit annually with their $265K Salary?

I have this same situation right now. I know that C loses it's Safe Harbor exemption for the entire year and will have to be tested for the short plan year. Remember to suspend the Safe Harbor certain requirements have to be met. http://www.irs.gov/Retirement-Plans/Reducing-or-Suspending-Safe-Harbor-401(k)-Matching-and-Nonelective-Contributions-Midyear I would thinke Plan B and C can be tested separately for the short plan year 1-1-2015 to 4-30-2015. You have until the plan year end following the year of acquisition to test the plan's separately. The only contributions B and C include in A's testing is as of 5-1-2015. Participants would go under the provisions of Plan A as of 5-1-2015. Sam would have that 8 months of service, but would still have to wait until he completed 12 mos. Or Plan A could be amended to allow all employees coming over from Plan B and C to be eligible as of 5-1-2015.

jpod - Company X did merge into Company Y and disappeared. Company X employees started to be paid under Company Y and Company Y cease to exist. I get your point. Thanks so such!