RatherBeGolfing

Yep that is my issue with this as well. We have plenty of those plans and most of my plans like that will want to stay participant directed, which will mean that they will probably go to a more expensive insurance product and get ridiculed by John Oliver... This will probably mean an increase in audits for those plans since many of them don't have a ICC or an investment manager the participant contact. I guess this is what Borzi had in mind when they reluctantly revised FAB 2012-02 to include Q39.

A part of the proposed changes we haven't talked about in here is plan and investment information for participant directed plans. A newsletter from Ascensus included this little gem: New compliance questions indeed require you to attach the Investment Comparative Chart distributed to the participants as part of 404a-5 compliance. (see page 174) Other questions include number and type of DIA's and whether the plan made a designated investment manager available to participants. Time to move all those SDBA plans to platforms or pooled investments...

Over 100 on the first day of the plan year? Yes. 80-120 rule would not apply since the plan was never eligible to file a small plan filer.

The proposal specifically says that they want to process it through EFAST2 so that both extension and filing is processed by the same system. I still think that a batch feature will be available through third party vendors though. The proposal also states that you could still file on paper if you prefer that method Thanks... obviously I didn't read through the proposal <g> No worries. I actually thought FIRE would make more sense as well until I saw the reasoning. J

You are correct, you are operating under the terms of the document. The fact that you are looking at a lookback year for HCE's is irrelevant.

The proposal specifically says that they want to process it through EFAST2 so that both extension and filing is processed by the same system. I still think that a batch feature will be available through third party vendors though. The proposal also states that you could still file on paper if you prefer that method

Yes there is a chance they will mess up. However, just like sending a stack of 5558 for unrelated employers, I don't think its an issue to have more than one 5558 for the same employer. I attach a cover with a list of each employer, EIN, and plan number included in the package. The IRS will return the cover because they can't process it, but I use it as "proof" that a certain 5558 was indeed mailed. Every time I have had 5558 issues, the agent has accepted my list along with the certified mail/return receipt as proof of filing.

It qualifies for the ERPA ethics CE requirement. Basically, if it qualifies for an Enrolled Agent it will qualify for ERPA. Note that you can only get credit for this broadcast once though, so if you did the live version for credit you can't get credit again for the re-broadcast. I have never had an issue with the CE requirements. I do some free IRS webinars, ASPPA annual conference, and normally a local all day seminar or two a year. I would do these regardless of the CE credit so I never really have to "chase" credits to have enough. However, it is totally possible to meet the requirements by doing the free webinars and then getting enough credits from third party CE vendors. There is a link on the IRS website of third party CE providers (it takes you to a different site): https://ssl.kinsail.com/partners/irs/publicListing.asp Using this list you could easily find enough credits and even shop for the lowest price per credit if budgeting is a concern... J

Noting that the IRS has had difficulty promptly adjusting their records to recognize that a Form 5558 has been filed, there should be no problem to solve. Timely filing a Form 5558 to extend the filing deadline for the 5500 and the 8955-SSA is all it takes. IRS approval is not required. If the Form 5558 is completed properly and submitted on time, the IRS has ceded all authority to reject such a filing. I'm guessing you haven't had the IRS send a letter to some of your clients claiming a Form 5500 was filed late and a penalty will apply because the IRS did not process the 5558 timely. We had one client receive two of those letters in a four year period. After getting a power of attorney signed and wasting time on hold, the matter was quickly resolved once I was able to speak to a live person at the IRS. I don't enjoy extra non-billable work and having clients think we missed a deadline that we did not miss just because the IRS waited until November to process some extensions filed in July after they sent out late filing notices in October. As I said, there SHOULD not be a problem with this. That doesn't mean there isn't. If it migrated to EFAST2, who would be able to file a whole batch of 5558s at one time (as in one 5558 for every single ERISA client)? Would plan officials authorized to sign off on the 5500 filing have to get involved? And (as much as I hate to suggest this) what guarantees are there that submitting a 5558 through EFAST2 would keep the IRS from failing to notice that it had been submitted? How often does the IRS assert that timely filed 1040s were late? Why do they do so with the 5558s, which (one presumes) come to them in much smaller quantities? I'm cautiously optimistic that electronically filed 5558 would not be worse than the current paper filings. For the possible issues, I see simple solutions. 1. If migrated to EFAST2, who could file a whole batch? I don't see why it wouldn't be possible to batch file 5558 electronically. If the e-5558 can be filed without a signature like the paper 5558, third party software can easily come up with a batch function. Even if you had to extend the plans one by one, it shouldn't take that long for the average service provider... 2. Would plan officials have to get involved? Maybe, but again, not the end of the world. You simply send out authorization for the extension when you collect your annual data. 3. Of course there are no guarantees, but can it really get worse? J

Yikes... I was hoping for some light night reading