cpa2000

It sounds like the client really needs to use the VCP process and can certainly ask the IRS if they can amend w2s to remove the simple deferral that never got paid in for those 2 years. If I decide to refer the client to someone who can help them through the VCP process.... where do I send them? How do you find a practitioner skilled in the vcp process? thanks!

For the year in question.... There are 2 employees who participated + the shareholder. All employee deferrals were paid in 100%. All deferrals for shareholder were not paid in - not one penny. This was 3 years ago. Over the next year no employees participated, owner had deferrals but zero paid in. Then last year no one had deferrals, nothing paid in.

He made no deposits for himself for 2014 and 2015 (no deferrals 2016) so excess contributions would not apply. Amounts were withheld and excluded from income but not paid in.

Thank you for responding. His W2 for both years shows simple IRA deferrals. He did not fill out an annual election form. Could we undo it as an accounting mistake.... saying his intent was to end the simple ira 2 years ago? Currently he is having amounts withheld from his paycheck on a shareholder loan. Is there any way to undo this simpler... ha ha pun not intended... vs. amend 2 years of 1040s and s corps changing from simple ira to shareholder loan repayment? This is whole thing is yuck yuck yuck. :(

There are lots of topics on this forum about employers not depositing deferrals for unrelated employees (sad!). This is a little different - all non-owner employee deferrals and matches were deposited timely. The deferrals for the 1 shareholder-employee were not deposited. There are 2 years worth of deferrals and match not paid in. If this were a non-owner employee there's only 1 option to fix this ... deposit what is owed plus missed earnings. The company does not have the cash flow to deposit the late deferrals and match. This is the 100% shareholder. Is there an option to not deposit the deferrals and match in some way... amend W-2s and tax returns to change these deferrals to shareholder loan repayments? Any creative ideas that would simplify the process? No other employees have participated in this plan in 2 years. I appreciate your help!

Did you receive an answer on this? How was it resolved? I have a client in a similar situation except that the only person participating in the simple ira was the owner.

Thank you

CPA's are generally required to have 120 hours in 3 years or 80 hours every 2 years. Often no minimum per year. 4 hours in ethics required every renewal cycle (so either every 2 or 3 years). CPAs are licensed by state so those will vary state to state but 40 hours average has been consistent across 3 west coast states I have been licensed in.

Where are you finding CE on retirement plan topics? I have found these courses very difficult to find. The only one on the west coast that I found was sungard this year and the courses are super expensive.

Did you find someone will that do? Would you be willing to pay it forward and share your templates with me? I searched and searched for a software that would generate distribution paperwork for me.... cannot find anything out there. Specifically looking for distribution paperwork templates. Thanks

Question: Can an employer deduct contributions made to an employee's Roth IRA? The employer has a 401k plan - nothing special to note about the 401k plan. Outside of that plan as a bonus the employer made contributions to one employee's Roth IRA account. They have been grossing up the employees wages for the Roth contribution made. (At least they did once upon a time - it doesn't look like it happened last year.) To the employer this is basically wages (assuming they grossed up the wages, amend the W-2 from last year if necessary etc), is there any issue with the employer deducting this contribution (as wages I would think)? The employee would pick up income for the wages (including the grossed up Roth contribution) as income and then not deduct the Roth Contribution.