RatherBeGolfing

Lets be very careful here, there is no such thing as a de minimis amount for late deferrals. The increase in the de minimis amount in Rev Proc 2021-30 are related to excess contributions and overpayments to a participant. The participant benefitted more than he/she should have, which is the opposite of a late contribution.

so people in their 40s? Thats a new one for me.

Yea I don't disagree with you. It isn't something I would normally do, but I do have a few clients who want us to double and triple check everything plan related, and are fine with the associated cost. Ideally, you have lower cost staff for remedial work, but I don't think that is the case for most TPAs

I agree, but I also think that some clients want more handholding and are willing to pay for it. If this is a client that is a client that is mainly concerned with cost, I dont think they will stay a client for too long.

The amount shouldn't matter to this discussion. The client normally relies on the 7 bday safe harbor (deemed to be segregated at the earliest date), the transaction in question took 8 bdays due to unusual circumstances. The question is, did the unusual circumstances cause a small delay during the 7 bday window to make it 8 bdays, or was the 8th bday the earliest time it could be deposited due to the unusual circumstances? If its the former, it should technically be reported on the 5500. If it is the latter, I think you have a reasonable argument for calling the deposit timely and leaving it off the 5500.

No need. IRS and DOL are well aware of the issue, but haven't worked out the practical solutions yet. Simply be prepared to follow up on correspondence and explain that it was a retroactively adopted plan, the filing is not late even though it is filed after the 5558 deadline.

https://www.irs.gov/pub/irs-drop/rp-21-30.pdf

Doesn't back door Roth usually refer to a non-deductible IRA contribution that is converted?

That is even more troubling... Where did the employees funds go if the check bounces?

The best method is detailed time tracking, but it is a chore most people hate. For admin, it doesn't have to be super detailed, just your basic steps (census work, testing, trust accounting, form 5500, etc). Tracking these tasks will give you the metrics you need to split the workload appropriately, where to focus training, if some plans could be shifted to another admin, if you are under charging the client, etc.

You would pay the beneficiaries from the participant account right? One participant account. EZ.

He is not a non-resident alien without US income , but on a student visa he most likely is a non-resident alien*. *depending on the student visa type, 1-5 years before he would be considered a resident alien for tax purposes.

The better question is: how many business M & A transactions have you seen where the attorney's DID consider the impact of the retirement plan? I might not even need both hands to count...

The plan sponsor might have lost it like they lose most things.... If that is the case you probably have a duty to provide it to the client (perhaps for a reasonable fee)

With the exception of hockey, I prefer college sports, but I don't watch much of it anymore. I do enjoy the business end of pro sports though, especially contracts. One of my old law professors worked on a database of college coach and AD contracts that was very interesting. Some of them were openly available, others obtained through FOIA requests.

This is a very creative contract, even for baseball. It is designed to allow the player to walk away after each season, avoid some luxury tax for going over the soft cap, and defer some salary payments if the player opts out (probably partly for cashflow reasons) It goes like this: Player signs contract prior to 2021 season, and receives a $10 million in signing bonus payable in 2 installments (3/1 & 7/1) Players salary is $28 Million for 2021, and $32 million for each of the final 2 years of the contract Players salary for 2021 is payable on 11/1/2021 (after the end of the 2021 season) If player opts out of the 2022-2023 seasons in the contract, $20 million out of the $28 million salary will be payed out in annual $2 million installments from 2031-2040. So if player opts out, he is payed on 11/1/2021: $8 million salary and a $2 million buyout, with the remaining salary paid out during 2031-2040. The contract binds the team to the $2 million buyout if exercised, but defers the majority of the salary interest free. If player opts out after 2022, he would receive his $32 million 2022 salary and a $15 million buyout. While this sounds like a bad deal for the team, it really isn't (in baseball salary terms at least). It is basically two year contract with a player option for just one year or three years, but in reverse 😎 The team pays the most per year if it is 2 years, due to the $15 million buyout after the second year, but the player can elect to stay for the third year, dropping the per year salary for staying the extra year. The team is also "protected" if the player bails after the first year, since they get the interest free salary deferment. I hope that clears it up a little bit more

👍 And in the end, it is the plan's responsibility to make sure it gets filed. Whether TPA or client is at fault is a contractual issue, not reasonable cause for late filing of a required annual return.

Will spend? That is a tad extreme...

Guidance can be found in Notice 2020-50. In a nutshell, payments scheduled between 3/27/20 - 12/31/20 can be suspended for a year, but payments scheduled after 12/31/20 still have to be made as scheduled. There are lots of ways you can accomplish this, ranging from simple to complicated, and you don't have to use the example in the guidance.

Correct, you have to name the state or commonwealth for choice of law in the adoption agreement. The document will not pass the FTW edit checks without completing this item. Which makes sense, the licensee has been issued the IRS opinion letter in its name. Also, it would be very inconvenient to have a practice in Florida, a plan sponsor in Florida, but have document governed by laws of another state. I would assume that if a service provider utilizes a document that is in the document's publishers name rather than its own, it would be governed by the law of the state of the publisher.

Your prior enrollment is good until 9/30/2021. Renewal takes place during the last 6 or so months of the prior cycle, and is good for 3 additional years. Its timed this way to avoid gaps in enrollment due to an expired enrollment and OPR processing the renewal application.

I had a similar issue last year. The folks at OPR were very accommodating.

Eh, that really depends on the position. Once you get past pure sit at your desk admin, you are going to have a very hard time finding an employer if you think it should be clock in - clock out 40 hours mon-fri.

This isn't limited to the employee benefits. CPA firms are having a very hard time finding applicants to fill vacancies, especially as you get to manager level. It is for a variety of reasons, but quality of life or work/life balance seems to be towards the top. Many applicants are just not willing to take on the heavy workloads anymore, and this is especially true you do not offer work from home to offset some of that time. The major CPA firms have started to increase pay and benefits to attract new applicants and folks who previously left the industry for something else. I would assume that we can apply the same issues to our corner of the industry.

This sounds like an employer/plan admin error, why would you make the participants pay for it?