RatherBeGolfing

austin3515, personally I think the answer should be the same in both cases. The employer just couldn't fund the contribution by asking the server to pay over one of the $100 bills. I agree with you that the answer should be the same for both scenarios. Id like to throw in another twist though. Suppose that the wages portion is closer to a 50/50 split or maybe even less than the tip income. Also, suppose that the employee pays for health insurance and other optional benefits from the wages portion of the paycheck. When there are not enough wages to cover benefit premiums and elective deferrals its an even more complicated issue than the math of $80 vs $100.

I haven't seen this...yet. I don't think you are overreacting though. If they want to be PITAs, there are plenty of places to go.

I agree its a dicey issue, and you should have an employment law attorney draw clear lines of what you can and cannot do to make sure you stay inside the lines. That said, I think it is possible. The bigger question is is it worth the effort and risk?

Good on ya Dave! I know you guys put in a lot of work on this site, and advertising/job postings are usually the only ways to get compensated. That's a great goodwill gesture!

If you give them a schedule and assignments to perform, yea I agree. If the person can decide what assignment to accept and when to do them as long as done by the due date, it sounds more like a contractor.

I'll take a stab at it, and I could be wrong... If its a plan expense account, it is a plan asset because it is for the benefit of that plan rather than revenue sharing deposited into a service providers operating account. As a plan asset, it is subject to the qualification requirement that all funds are allocated to participants based on definite plan formula. This requirement then means that funds cannot carryover unallocated from year to year (same reasoning as the plan forfeitures). So it goes back to the Code.

Full accounting of what? What are they questioning and for what period? contributions? earnings? fees? Between SPD (or plan doc if necessary) and SAR/5500, they should be able determine whether contributions and gain/losses are correct.

Just as an FYI, reasonable cause penalty waivers are very hard to get nowadays. The reasonable cause better be damn good if you are going to gamble away your DFVCP eligibility. Like "all my plan records were trapped in the middle of disaster area and I filed the 5500 as soon as humanly possible after FEMA let us go get them" good.

No objection. I'm not sure how many would fill out employer specific information though. I think you would run into a "my opinion, not that of my employer" issue.

I agree with ESOP and Bob.

Agree with Lois. The extension for the IRA contributions flows with the due date for the return, so the IRS wouldn't need to address the IRA contribution deadline separately. That said, they most likely will address it in some way as we get closer to the original due date. Also, see today's posting on the SlottReport

Which Form 5500 do you file for your plan? 5500 or 5500-SF (owner and employees?) 5500-EZ (owner only or owner & spouse) I would not go attempt to get penalty abatement for reasonable cause as you risk making a simple fix more complicated. Instead, I would use the established correction program available for your version of the 5500. It includes a user fee but it is worth it. The 5500 and 5500-SF uses The Delinquent Filer Voluntary Compliance Program (DFVCP) through the DOL. User fee is $750 per late return. Penalty Relief Program for Form 5500-EZ Late Filers is available through the IRS. User fee is $500 per late return. Do you work with a TPA for your plan or do you do all plan related things by yourself? If you have a TPA, they can certainly help you fix the late 5500.

Same here. The TOS already prohibits commercial advertising through the message boards, so if it was "pay $50 for my webinar" it would be really simple. All the links seem to be to the CFPB website but I haven't seen a link that has been more than just tangentially related to this message board

What does the plan doc say? Definition of compensation? Does it allow for post year end comp? Would this have been eligible comp but for his termination (if P used his vacation days in 2020 and then terminated)?

As soon as you can reasonably segregate the deferrals from employer assets. Its going to depend on what the actual process for is, but for something on an ongoing basis, their excuse is not going to cut it. Reasonable is as soon as it should be possible given the facts and circumstances. For example, Owner is traveling and Assistant gets quarantined with Covid and cannot go into the office to mail a check to the plan. The delay is reasonable. Owner is traveling and only deposits once a month because he cannot be bothered to figure out a better solution (like travel with physical checks if they need his signature). Not reasonable. My rule of thumb, absent an unforeseeable intervening event, more than 3-5 days is not reasonable. If that happens every payroll, you should have figured out a way to improve your procedures.

No. No. You report the amount of repayments on Form 8915-E, from $0 to $6k. If you repay less than 1/3 of the CRD, the remainder of the 1/3 must be included in income. Its up to you.

Agree with @Bird. Repaying a CRD to an IRA is not a contribution. You will see some people refer to it as a rollover since a 401(k) plan that receives a repayment would treat it as a rollover asset. It is treated as a trustee to trustee transfer, so its not a contribution, and it does not count as a rollover for the one IRA rollover per 12 months rule.

Depends on the document. Does the plan treat loans as a segregated investment (Earnings to participant with loan) or as an investment of the trust (earnings to all)

Retirement plan contributions are eligible for PPP forgiveness, but this is 100% a question for his CPA. If CPA cant answer or is passing the buck, it is time for a new CPA.

If all participants would be considered 2% shareholders of the S-corp, by direct ownership or attribution under 318, you would treat all participants as partners for filing purposes. A plan that covers only partners would file an EZ.

I have the same confusion as Bill and Bird... Or are you just looking at it as a timing issue? Client made $10,000 contribution in February and got $100,000 in PPP funds in March, can you count the $10,000 as a PPP funds spent on the retirement contributions? Is that the question?

@C. B. Zeller beat me to it by a minute or so haha. They didn't really add attribution. All they did was expand the Form 5500-EZ eligibility by treating 2% S-corp shareholders as partners for filing purposes. The only reason we are talking about attribution here is because the definition of 2% shareholder includes attributed ownership.

Peter, I think it is more likely that most TPAs (and probably RKs) do not do this because they do not offer investment or financial planning services, and they emphatically stay on the other side of that line for good reason. If you are not a tax advisor, you should not provide tax advice. If you are not an investment advisor or financial planner, you should not provide investment advice. There are so many variables that going beyond "speak to your tax and investment advisors" is getting into territory where you should not provide such advice unless you are qualified (and licensed/insured) to do so.

Yep same process here and same speed reader clients In most cases there was time for review prior to final document going out for signature though.