RatherBeGolfing

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.

I have used the signature feature in Acrobat for years, never had an issue. DocuSign type digital signatures are common for contracts, but are only accepted on a short list of IRS forms. Ft Williams uses a DocuSign type e-signature in their Distribution Tracking Software. Some RK forms specifically say Acrobat digital signature not accepted. You can use the digital image of your signature to sign it, but not the DocuSign type signature. JH will accept a form signed with DocuSign, but only after confirming with the person who signed it

I thought the IRS only had a very short list of forms that were approved for electronic signature... To be clear, Im talking about a digital signature like DocuSign, not an image of your actual signature that is digitally added to the form.

Enjoy retirement!

It applies only to the 1 year vs 3 years income inclusion.

The Source is a NTSA publication that specifically deals with the 403b/457/government plans. It doesn't have the cross appeal that the EOB does, but its possible that it has some useful information.

I find this incredibly difficult to believe. Agreed. This usually means "we don't track hours, and we have no intention of doing so for the plan"

There is no reason why you would get a penalty for an that error, you are just correcting a reporting error that has no impact on the benefits or rights of a plan participant.