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kpension

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  1. Does anyone know when the IRS will have the fill-in version of the 2023 Form 5500-EZ posted to their website? The information I found stated after January 1, 2024. I have been checking the website daily since in previous years they were available within a week after the new year. I can see from the informational version, (attached) that a question was added, which is likely the cause of the delay. However, it would be helpful to know when the fill-in version is expected to be posted. 2023-ez-instructions.pdf 2023-form-5500-ez.pdf
  2. Is "class of beneficiaries" a defined term? If not, then maybe it is reasonable to state that the "class" are the 3 children and they get 100% shared equally.
  3. Publication 560 https://www.irs.gov/publications/p560 has a contribution worksheet towards the end of the publication. Is the SE tax calculation/deduction what you mean by integration? Or is the contribution formula integrated with Soc Sec?
  4. I thank you all for your suggestions. The corporation that sponsors the plan is in Imperial Beach CA (South San Diego County).
  5. This is a Fidelity prototype document, that uses different adoption agreements for different types of Defined Contribution Plans. The Adoption Agreement AA that is being used is No. 003, which is call Self-Employed 401(k) and is intended for companies, incorporated or not that have no common law employees. The Basic Plan have all the rules including the SH that apply if elected in the AA. Since AA No.003 does not include SH as an election it cannot be a SH-plan, which is what I meant about checking plan to confirm that the default was completing the ADP test verses meeting the requirement of a SH plan.
  6. I am a pension consultant that is assisting the company's financial advisor. I focus on 1-participant plans and try to avoid plans that have common law employees. None of my clients have employees other than family members. Just trying to get the financial advisor pointed in the right direction. I was going to suggest that he could post directly to this forum board and still might.
  7. I know this. What I do not know is the tests required or contributions needed, if a non-owner enters the Solo 401(k) with modest or even significant deferrals. Is the plan required to run the test or are the SH contribution rules in play? That what I need to check.
  8. I also agree with this and will check to see if someone at Guidelines is either getting bad information about the facts or just does not understand. After looking at information on Guidelines they appear to be more of an unbundled service provider, since I thought that most bundled services included loaded mutual funds which are the primary source of revenue for the bundled service provider.
  9. I think the client is open to all suggestions and I agree that the plan should be able to be restated as a SH beginning in 2023. They may want to allow the employee to enter before the 1 year waiting. However, I have not checked the Plan to see how a Solo 401(k) differs from a SH-401(k).
  10. Guidelines is a recordkeeping company that administers 401(k) plans on a bundled basis, which I think means the get a percentage of the load fees on mutual funds and other investments in the plans they manage.
  11. A small corporation wholly owned by a husband and wife has a solo 401(k) plan that they established in 2020 and includes a 1-year eligibility provision. The plan uses a prototype document from a major financial company designed for individual owners and SE companies. The corporation is about to hire their first employee and knows that the plan needs to change, which would require a new restated document and additional help with plan administration. The financial company, which is also the trustee, states that they only provide these services to clients with 20+ participants as their minimum annual fees starts at $20,000. The corporation’s payroll service, which uses a bundled approach to administer or provide recordkeeping for the smaller companies quoted annual fees less than $2,000. However, claims that they cannot convert the prior plan to a traditional or safe-harbor (SH) 401(k) plan because the current financial institution uses unbundled services. The payroll service which uses Guidelines states that they could not setup a new traditional or SH-401(k) plan until the current solo 401(k) has be terminated for 12 months. My goal is to find a service provider that will convert or restate this plan and provide annual recordkeeping/administrative services for a 3-participant plan for a reasonable fee. Any takers?
  12. Let's say a single member business owner earns $25K (a side gig). If this is a side gig and this person already has deferrals in another plan, even if unrelated then those deferrals count against the deferral limits. Many of my side gig clients are already maxed out on deferrals from their regular jobs, so I thought it was worth noting.
  13. Maybe the owner that has the loan will pay it off to ensure nondiscrimination in the elimination of loans.
  14. Absolutely correct! In this case the Defined Benefit Plan takes all the available SE Income and Plan Compensation equals zero. Since contributions to his defined benefit plan in each of the five years equaled his Schedule C Income less the Self Employment Taxes, there is no Compensation to defer in those five years.
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