lp1965

A variation on this theme.....I have an owner who will be taking his first RMD this year. His account consists of Roth deferrals, safe harbor match, discretionary profit sharing, rollover and voluntary after tax funds. Can he pick which source to take the RMD from?? The plan document is silent on this issue. Two additional wrinkles--(1) We don't have the basis amount for the voluntary after tax funds. The plan started in 1983, but my firm took over in 2010. We are trying to get the basis amount from the prior TPA. (2) The plan will be terminating later this year.

Jim: Thanks for the speedy reply! That was what I thought, but I always feel better getting a second opinion.

I have a 401k plan that has 2 participants with account balances (owner & spouse). They have several other employees, but none met participation requirements. Total assets are less than $250,000. Are they exempt from filing a 5500??

Bird, while I like 401King's answer better , I had a feeling that the answer was no. Do you have any backup information (citations, etc.) that I could provide to the CPA?? Thanks.

I have a 401k plan with a 12/31/15 year end, where the owner did not defer in 2015. He has just now (July of 2016) decided that he should have done so. His CPA is asking me if they can amend his 2015 W-2 to show the deferral and deposit it now. My immediate reaction is "NO". Has anyone else had a client in this situation? I would appreciate any and all input! Thanks.

Just to be sure I am understanding.....Calendar year plan with deferrals and match made each pay period. For 2015, the owner deferred $24,000 (he is over age 50) and received a $7,950 match. ADP test fails resulting in a $6,000 refund to the owner (no reduction needed for the match). When calculating the maximum profit sharing contribution, the owner will be limited to $27,050. Is this correct???