RatherBeGolfing

I agree with @Kevin C, it is a numbers game for those close(ish) to audit territory. The regulatory agencies are aware of this and Im cautiously optimistic that we will have a solution before we are actually required to bring the LTPT EEs into the plans. Other consideration: Possible impact on fees Extra administrative work (especially if plan responsibilities are simply added to an employees existing workload - includes everything from more paperwork for new employees, enrollment, notices, distributions, possible missing participants, etc.

If none of the assets are participant directed? Yes.

Bill channeling his inner @Mike Preston 😀

I'm going to split hairs a bit and ask for a clarification. Do you mean a fiduciary responsibility (legal, must do) or a moral responsibility (should do)?

Did the sponsor sign and file electronically or did you sign and file on their behalf with a copy of the signed 5500 attached? When you amend, the original filing is replaced with the amended filing. If you have an attachment with your filing, there will usually be a delay as the DOL will verify that there is no sensitive information posted for public viewing. You might have a short time when no filing is visible while the original is removed and the amended has not been checked.

For plan document purposes or compliance module?

@S Derrin Watson Thanks Derrin! Really appreciate the input from you and Ilene!

Yes, since the 2% shareholder treated as partner is only for filing purposes.

Thanks Ilene!

If you submitted them around the same time, chances are they will get a notice. I think they stopped processing most of the mail in March 2020

Im pretty sure this came up during ASPPA All Access as well, with the answer till being VCP. I think it was either Heather or Kelsey.

100% do not rely on IRS figuring it out on their own, but it does happen. Its still on the taxpayer if something is missed though.

This one you do need to contact the IRS on. This happens from time to time and you can usually solve it quickly by providing proof that you mailed it timely. If you have a lot of them, you can ask the IRS to send a list of all clients in the batch on electronic media instead of responding to each one individually.

I agree, no need to call IRS. They are processing late (or later than the normal late) because the IRS had offices closed down and a lot of mail went to storage unopened.

Yea that makes sense, thanks!

I do the withholding and deposits for most of my clients. Those funds go to an omnibus account for my firm, and at no time do they go through the employer. The taxes are paid to EFTPS by my firm as a reporting agent on behalf of the plan. For IRS purposes, the plan made the deposit, not my firm. In cases where you outsource the payment and reporting to a third party, you basically transferring the benefit to the third party for payment. It comes from them, not from you (the plan). If Ameriprise paid benefits and deposited withheld taxes using its own name and EIN, they would do the 1099-R and 945. If they did the deposit as a reporting agent (on behalf of the plan), the plan is still the payor. There should be no situation where YOU issue a 1099 or 945 using in Ameriprise's name and EIN. The client needs to find out what services they have engaged Ameriprise to perform, period.

Did OP confuse age 72 RMDs in SECURE with the RMD relief in CARES that was optional?

This. The payor is the PLAN, not the brokerage firm.

I have always heard #2, and honestly didnt even consider #1 😄

100% this! Of course it is taxable. If there was no withholding you report no withholding. Lets go back to the ABCs of CRDs, ANY DISTRIBUTION (with a few exceptions like corrective distributions) can be a CRD. The 1099-R reports the transaction. The tax treatment of the distribution will be determined based on the taxpayer's filing of Form 8915-E. You can have a CRD from the plan with no withholding, but unless the taxpayer makes certain elections and files Form 8915-E, it is taxed like any other distribution. BTW, marking it with code 2 on the 1099-R will mean absolutely nothing unless the taxpayer also files Form 8915-E. And if they do file Form 8915-E, it doesn't matter if the 1099-R is coded as a 1 or a 2. Finally, imagine the following scenario: Taxpayer is a participant in two plans, and takes a $100,000 CRD with no withholding from each plan. Both plans have followed the rules, and will need to report the distributions accurately. Taxpayer can only treat $100,000 as CRD for preferential tax treatment, and treatment that treatment is entirely up to taxpayer. Why in the world would either plan report anything other than what happened?

The OP was something along the lines of ER releases contributions to TPA timely, but TPA for some reason takes X number of days (or weeks) before it deposits the contributions to the participant accounts, is this a late contribution for Form 5500 purposes?

Yes. Starting with 2020 Form, 2% shareholder treated as partner for annual filing purposes. See prior thread for more detail

It doesn't make any sense for them to be that pushy about a filing that might not be required. Even if you are required to file an 8955-SSA on July 31, 2020, its completely possible for you to no longer be required to file when the extended deadline comes around. In that case, extending beyond July 31, 2020 and ultimately NOT filing is exactly what you are supposed to do.

I haven't seen this letter, but it sounds like the IRS notice generator needs tweaking. No check boxes or anything on the letter? I have seen some recent DOL correspondence stating that they have no record of a 2019 Form 5500, requesting a response in 15 days.

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