Jim Chad

Aren't honor and duty a pain some time?

Larry, You raise some very good questions. These two scenarios actually bother me more because of the question of whether or not there was actually a business reason for hiring them. It looks like these two people were put on the payroll only to save taxes. I would definitely send a letter to the client explaining the grounds the IRS may use to challenge this and ask for an answer in writing to the question of does he really want me to use this?

It seems pretty plain that you are required to give notice....besides it just plani being the nice thing to do. But I don't think you need to wait 6 months for the reply. If I don't get a reply, I process it using the trustee's signature in time to get it done by March 15th and avoid the penalty. ON the other hand, my plans are small and I have very few of these. So I often call the HCE and have an answer about what withholding they want in 5 minutes. It is not in writing, but I note the time and date of the phone call and I am OK with that.

Pat: You have more strange Plans than anyone I know! I would include it. He is the one who has chosen to follow the letter of the law. I would not want to put myself in the position of deciding whether or not he is following the spirit of the law.. ..or even whether he needs to. I understand a penny makes you uncomfortable. How about a dollar? 100 dollars? Where do you draw the line? I would draw it at nothing versus something.:What does everyone else think?

Great Job! Tom! That really fits my mood.

I would vote no on refunding to beneficiary, maybe. I would refund to the estate of the deceased. Of course, the spouse is often both of these. But the point is the refund is not part of the pan so does not go to the beneficiary.

Hi Laura: You have my sympathies. I will give you my opinion, FWIW. But I cannot back it up. Scenario 1. The SHNEC is a weird creature. I think you would have a uniform allocation using 3% of comp for the period of time the Plan was Safe Harbor. Scenario 2. I think you would have a multiple formula safe harbor design here. Again, in my NTBHO (never to be humble opinion). Scenario 3. I don't think this one employee changes your scenario 2. I am going to be interested to hear what everyone else thinks.

You have to allocate according to the document. But the doc probably allows you to give A and B the same percentage. If you do this you will pass nondiscrim testing.

FWIW I think yes. A wholly owned subsidiary would be part of any affiliated service group the parent is in.

I am looking for a report to Print Roth Contributions. Does anyone know if Relius Admin has one?

You may need to amend the document. But it is legal to use PS forfeitures to pay part of a match contribution, if that is what the document says to do.

This is the format I used last time. NOTICE TO INTERESTED PERSONS DATE Distributed to Interested Persons TO: All Interested Parties of the (PLAN’S NAME) FROM: Plan Fiduciary Seeking Relief under Class Exemption PTE 2002-51 (USUALLY THE COMPANY) (NAME OF COMPANY) has made a filing under the Department of Labor’s, Employee Benefit Security Administration (EBSA), Voluntary Fiduciary Correction Program (VFC Program) to correct its breach of failing to remit participant contributions and loan repayments to the (NAME OF PLAN) timely for (THE TIME PERIOD, PAYROLL PAY DATES, ETC. INVOLVED). EXPLAIN HOW CORRECTED – For example: (THE COMPANY) used the VFC Program on-line calculator to calculate the amount of lost earnings due to the affected participants for its fiduciary breach. Lost earnings totaling ($$) were paid to the Plan on (DATE RECEIVED INTO THE PLAN) and allocated to the affected participants’ accounts. The accounts for the participants affected by this fiduciary breach have been made whole. Interested persons may provide comments to the appropriate EBSA Regional Office for thirty (30) days from the date of this Notice: Cincinnati Regional Office 1885 Dixie Highway, Suite 210 Ft. Wright, KY 41011-2664 Telephone (859) 578-4680 Plan assets were not used to pay for the preparation or distribution of this Notice.

FWIW I agree with you. Quarterly statements are required.

I would refuse to prepare the 5500 since it will certainly be wrong. I would also call my error and omissions insurance carrier to ask if there is anything they would recommend in how I fire this client. Then I would fire the client. Or maybe I would send a reply to the denial of info stating this is the same as terminating our relationship.

I have experience with how much to charge when a 15 person plan allows individual brokerage accounts or if they have a platform such as John Hancock or Lord Abbott. Does anyone have any experience where they offer both? How much and what kind of additional work can I expect? Any ideas are welcome.

In addition, ASPPA GAC has learned that Schedule SSA filings for delinquent returns should not be sent with the return, but instead should be sent to: Department of the Treasury Internal Revenue Service Center Ogden, UT 84201‐0027 Only the Schedule SSA should be sent to this address. Do not send any other filings to this address This is from the ASPPA newsletter today.

I know that some people recommend this when added bankruptcy protection is desired. The federal bankruptcy laws specifically protects plans with a determination letter. I have also known some people to recommend filing if the Adoption agreement was completed by someone with a specialty other than retirement plans, such as investing, accounting, etc.

I can't get my head around this. Does the document really require that the 1st group gets maximum allowed by 415? Does this mean the non elective isn't discretionary.....it is required?

I also must have had an auditor on a good day. I had a plan audited two years back a month after I started changing it from an MPP to a 401(k). No MPP doc was ever found. The IRS auditor let them current date a GUST MPP doc and I finished restating for EGTRRA to a 401(k).

I would have thought that since he was not working any hours in the last 6 months, the second $100,000 could not be counted as comp.

Everything you suggest doing seems perfectly Ok to me, FWIW.

It is a DOL regulation, I'm certain of that certain of that. And you count form the due date of the Form 5500. And I think it is 6 years. If I remember correctly you are required to keep records until 6 years have passed since the due date of the 5500. But I'm sorry, I cannot remember where the Reg is.

yes

All I can think of are: amend the Plan Pass out new SPD or SMM Explain on the next 5500 Does anyone see anything I am missing?

Thanks, Kevin.