Sabrina1

Anyone have additional thoughts on this? I now have the same situation for a client. It appears the IRS fix it guide applies easily to employees. But what about the same error for the husband and wife owners? Fix it guide says calculate the earnings on the wife's portion of the SEP contribution that accidentally went into the husband's IRA, and then remove the wife's contribution plus earnings from husband's IRA and deposit into the wife's IRA? There is only one SEP, no employees, both spouses work for the business. What are tax consequences, if any? Deduction should be ok since total deduction on Schedule C (married filing joint) didn't change. Essentially 100% of the contribution went into husband IRA, should have been split 50/50 with wife's IRA as well (both under the same SEP).

I believe they would. I would file an amended 5500 indicating it's a DFVC filing, and pay the reduced penalty under DFVC ASAP. And quickly, before the DOL also sends a late filing notice.

I would agree with Gina to amend the last 5500 that was filed, update it to meet the requirements of a "final return," and attach a PDF statement explaining the plan is/was exempt from the 5500 requirement and why, and that the 5500s were filed in error.

I'll assume you're referring to a large health and welfare plan that is either unfunded, fully insured, or a combination of unfunded/fully insured? Yes, there is a blurb hidden in the 2023 Schedule C instructions, bottom of page 25, first column, that refers you to 29 CFR 2520.104-44: "Health and welfare plans that meet the conditions of the limited exemption at 29 CFR 2520.104-44 or Technical Release 92-01 are not required to complete and file a Schedule C." If you go to the reference, https://www.law.cornell.edu/cfr/text/29/2520.104-44, you will find that health and welfare plans that are fully insured, unfunded, or a combination of fully insured/unfunded, are not required to complete and file a Schedule C. I guess you still can if you want to. But not required. With that being said, I've seen many welfare plans that are exempt attach a Schedule C when they aren't required. I assume they don't look into what the limited exemption means. The DOL could certainly put this instruction into plain English and then more plan sponsors/practitioners would be aware. Agree with you in that funded/trust plans have no such exemption to attach Schedule C, so therefore must file.

If an audit was required, I would file under DFVC (when the new audit was completed) as well, with $2,000 penalty. If an audit was NOT required, I would just amend the 5500-SF onto a long Form 5500, and include the additional schedules/information.

Here is something that may be helpful....Penalty for failure to file ACA forms 2024.pdf

I've never seen this before either. Was the form perhaps filed late? And this is for late filing penalties? Or incomplete (i.e., missing schedules or attachments that relate back to IRS (as opposed to DOL) portions of the form)? How would IRS even know what to "change" on an "information" return? I would contact the phone number on the notice and ask what's up.

This may also be helpful re: the TINs.... EY Tax Alerts Employers receiving nameTIN mismatches during.pdf

Are you sure the filing was not accepted? I believe a filing can still be "accepted with errors." If you're able to correct the errors, you can re-file until the error message is gone. Anyone else able to chime in?

I know the option to rollover 529 account funds to a Roth IRA takes effect beginning IN 2024. And can only be rolled over up to the Roth IRA contribution limits (i.e., $6,500 for 2023 and $7,000 for 2024). Is the deadline to rollover the 2023 $6,500 contribution limit 4/15/24 -- or 12/31/23? Is the deadline to rollover the 2024 $7,000 contribution limit 4/15/25 -- or 12/31/24? Wondering if I can rollover both the 2023 max and 2024 max IN 2024 ($13,500). Or only the 2024 max of $7,000. I assume there is no clarification on this yet?

I would only mark the 12/31 5500 with Code 4R, and NOT mark as final. Typically, when you file a final Form 5500, the number of participants at the end of the plan year is zero (i.e., the plan is gone). In this case, end of year participants are "1." The DOL will know by the use of Code 4R alone that a Form 5500 will not be required for the next plan year.

We got one as well sent on 12/1. The email mentions possible penalties if you fail to revise your filing, but they do not address a due date or the 45 days.

The Office of the Chief Accountant will help you. Leave a detailed message and someone will get back to you for sure.

Could it be the fact that the plan only covers one participant? One-participant plans are not required to file a 5500 under the DOL, only the IRS?

I would likely amend the 2020 Form 5500 to reflect a final return, assuming you have confirmed that the employer's 2021 Form 5500 filing requirement has been met with the "community plan." Without seeing the plan documentation, it's hard to determine what type of plan the community plan is, perhaps a group insurance arrangement or multiple-employer welfare plan (MEWA), etc.