LMOC
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Everything posted by LMOC
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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.
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HI All, I will post it today. Very interesting letter.
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Exactly! It was so odd to me. Thanks for the information.
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Uhmmm....I'll review the letter and see. But, how far back can the IRS go on changing a 5500?
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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.
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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.
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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!!
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Plans going through a conversion to a new recordkeeper with new funds need to receive the 404a5 within 30 days not more than 90 priors to the effective date or date the first assets hit?
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Thanks so much, austin3515!
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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!
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I wouldn't do it.
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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.
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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?
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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.
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Plan Sponsor Amendment after stock purchase of thte Plan
LMOC replied to LMOC's topic in 401(k) Plans
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! -
A company sponsoring AB 401(k) Plan was bought out (stock purchase - 100%) by another company in January 2014. The AB 401(k) Plan remained separate, but the AB 401(k) Plan was not amended to update the new Plan Sponsor. It still has not been updated. AB 401(k) Plan will merge into another Plan as of 6/1/2015 because the company that purchased AB Plan was itself bought out (stock purchase – 100%) later in 2014. Any thoughts on corrections?
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A company sponsoring a 401(k) Plan was bought out (stock purchase - 100%) by another company in January 2014. The Plan remained separate but the Plan Sponsor was not updated for the plan and still has not been updated. What are your thoughts on correcting this? The plan is NOT Safe Harbor. The plan in question is about to be merged into another plan as of 6-1-2015.
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The employee below has 1000 hours in 2014 if you include the last pay period of the year for which he was paid on 1/15/2015. If those hours do not count, he has only 938.5 hours of service in 2014. My thoughts:If they are NOT including that last pay period in 2014 into W-2 wages for 2014, the can’t count the hours for 12/31/2014. Correct?
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Thanks everyone!!
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Thanks! On that topic, there are no longer any employees for that entity. I agree I didn't see any harm in waiting either. We did get a confirnation from the ERISA support for the Recordkeeper that he would do it. He didn't see any issues with it. On a second topic for Safe Harbor. Am I correct in a safe harbor plan can no longer be amended mid year to add In Plan Roth Conversions? Thanks,
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Any thoughts?
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I know there are only a few reasons a Safe Harbor Plan can be amended mid year. But, could an amendment to remove a Participating Employer who has closed the company be made mid year?
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Thanks so much!!!!!
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Thank you Lou! It's not Safe Harbor, but it does have a Fixed Match. Does that change your thought?
