kshaw

No- we would not file the amended return until the errors were corrected

A 401k plan auditor found an error in a client's calculation of compensation. The auditor discovered the error and went back one year and found that the error occurred in the prior year as well. We are trying to assess how far back the error goes. (But the substance of the error is not what my question is really about.) In the meantime, the auditor will not release the audit for 2023. They are being particularly stubborn about it. The employer has filed its 5500s without the audit for 2023, but we do need to re-file with the audit report. In addition, the new auditor for the 2024 cannot finalize its report without an ending number for 12/31/2023. Any advice for convincing the auditor to release its 2023 audit with a footnote? In addition, any thoughts on filing a 5500 while a plan sponsor is in the midst of a correction? Wouldn't the employer be excused from any perjury claims under DOL rules because the information was accurate before the correction is made? Thanks in advance!!!

Can anyone recommend a legal or otherwise conference for an ESOP newbie? I am interested in expanding my practice. Thanks!

Labor counsel has confirmed that he should have been considered collectively bargained. He definitely was not eligible for the 401(k).

A client maintains a non-safe harbor 401(k) for non-union employees and contributes to an MEP for collective bargaining unit members. In 2015, one of the union members stopped paying dues, even though he remained covered by the collective bargaining unit. As a result, (1) the employer stopped MEP contributions, and (2) the erroneously allowed the ineligible employee to begin deferring and receiving match under the 401(k) plan. The employee has satisfied the matching contribution vesting requirements. The plan has over 350 participants, and this is the only participant affected by the error. The participant has an account balance of around $12,000 and total plan assets are around $9M. QUESTIONS: Is this eligible for self-correction as an insignificant operational error? Can it be considered insignificant even if we have to issue corrected 1099s for 2015, 2016 AND 2017? Are there any correction methods available in this case OTHER THAN returning contributions and issuing 1099-Rs? Thanks in advance for your thoughts.