Cobras59

For participant loans that are being refinanced, can the maturity date go ever go past 5 years from the original loan? https://www.law.cornell.edu/cfr/text/26/1.72(p)-1, 26 CFR Section1.72(p)-1 Q-20, has that if the replace loans satisfies Section 72(p)(2) and this section determined as if if the replacement loan consisted of two separate loans; to the extent the amount of the replacement loan exceeds the amount of t he replaced loan, a new loan is amortized in substantially level payments over a period not later than the last day of latest permissible term of the replacement loan. So if a refinanced loan is less than the available amount is it treated as a new separate loan and has a maturity date from the refinanced loan date and not the date of the original replaced loan? Q-10 makes it sounds like it can. Is there any other clearer direction than Q-20?

Some plans have not obtained EIN's for the Trust. If they need Plan EIN's, then would need to apply for one. A lot of vendors haven't always used them.

An employee eligible 1/1/2022 was discovered to have not been given opportunity to defer until 6/1/2022. If they elect to not defer at all, Is the only correction for the Missed Deferral Opportunity the greater of 3% of comp or the maximum deferral percentage for the safe harbor match that is 100% or more? For example, if SH match is 100% of 1st 3%, and 50%, would they just contribute a 3% of comp QNEC?

Yes. Distribution were already signed and distributed in 2019. Just now noticed that they did not sign J&S distribution forms.

Plan subject to J&S did not sign forms with J&S options, what is fix?

Thanks. I can't seem to get an answer from the TPA or an attorney. Then technically a Probate Estate has to be opened just so that the Executor can get a recorded Letter of Office to sign on behalf of the Plan.

The Keogh owner has died. We have a qualified Keogh document that needs to be updated and terminated. Who can sign on behalf of the Plan Administrator/employer? The Keogh owner was self employed. The Will names a daughter as Executor, but no Probate Estate was opened, therefore, no recorded Letters of Office.

It was discovered in 2019 that a rollover received in 2017 from an outside plan into a 403b plan included after tax contributions. The Plan that received the rollover specifically says in the document and SPD that it does accept after-tax dollars as rollovers into the Plan. Can the current Plan distribute the ineligible after tax money to the participant, with earnings, and do 1099R for the current calendar year? Or does the plan try and send the ineligible after tax funds back to the original plan and ask them to correct the 2017 1099R? What about the earnings? Are they taxed in the year distributed, or 2019? Could the participant do an In Plan Roth Rollover or Transfer in the current Plan?

Verified that it is partnership. Only one partner is taking income from it. They are using the Schedule SE to calculate the maximum for the owner and then giving the non-owner a %. Even if integrated, his contribution % is 20% and the non-owners is 6%, which is discriminatory. So, have to let them know they need to contribute more for the non-owner.

Was trying to back into what the company had actually deposited for the participant. The 4th tier should be what is left of the total contributed to the Plan. thank you!

Thank you for help!

All I have is a copy of the worksheet for the contribution calc. Step 1 of the worksheet has - Enter the net profit from line 31, Sch C; line 3, Sch C-EZ; line 34, Sch F; or box 14, Code A*, Sch K-1. the CPA has told me that he gets K-1 income. So maybe it's a partnership. Will have to verify with her.

I believe it is a Sole-Prop. The CPA is calculating the maximum on the 1040 Keogh/SEP/Simple Worksheet and that is what they are contributing for the owner. Then they are giving the non-owner a %, who's compensation is under the Social Security Taxable Wage Base. The document says the contribution is integrated, and with the 4 tier, the last step is comp to comp. If the owner gets the maximum of $29,000 total. That is 20% of his net earnings from self-employment income. With the integration, his total contribution before the last tier, comp to comp, is 9,399.64. the non owners contribution before the last tier is $1976.76. The owners comp is $146,653 and non owners is $34,680. So what is the contribution amount for the last tier comp to comp? Attached a sample allocation. Copy of Sample - Integrated contribution calcs.xlsx

I have a one owner company with K-1 income and the CPA is calculating the maximum that can be contributed on the IRS SEP,401K worksheet. The Plan document says that the contribution is integrated with SS at 100% of the TWB, 4 tier. There is one non-owner is under the SSTWB. When calculating the contribution for integration, can the contribution % to the non-owner be less than what the maximum that owners contribution calculation is? For example, owners maximum contribution calculated is $29,000, which is 20% of his net earned income. The employee is getting 6%. Is that allowable?

The document has distributions as age NRA which is 62.