SSRRS

Hi, Does anyone see anything wrong with a DB plan sponsored by an s corp, the owner needs cash to make the contribution so he will contribute from his personal brokerage account (and not from the corp account).? Thank you

Thank you very much, Calavera.

Thank you Calavera, always appreciate your knowledge. If his benefit hit 100 of comp 5 years ago, then besides that being his benefit as capped, are you saying that a BSD must be established from then,and therefore he is owed back payments from then? And if paying a lump sum now, would he receive in addition to his lump sum, the monthly befits for the past 5 years from the BCD? Thank you.

Thank you Cuse Fan, as always. So if his average comp was 23,000 and terminated in 2012, then based on the adjustments that you mention, his avg comp and his benfit can actually be increased higher than 23,000?

Hi All, A DB participant terminated at age 60. Was entitled to his benefit at the plan's NRA of age 62. Did not get paid his benefit until age 74. Actuarial increases are bring given to reflect the benefit payments that were not made for the period of age 62 until age 74. Question: The increased a accrued benefit at age 74 is $2,950. The participant's average monthly comp was $1,964. Is this increase up to 2,950 that is greater than his avg comp allowed or is the increase capped at $1,964, his average monthly comp (as cannot increase the benefit past 100% of comp)? Thank you.

Hi, Two corps are a controlled group. Therfore, one DB plan can be opened that will cover both entities. Can the following be done instead? For easier record keeping, etc. Open a DB for each entity and cover each entity separately. The owners (Hcs) are not getting above the 415 as they are covered only in one plan and the employees of each entity are all properly included. Thank you.

Thank you as always CuseFan, David Rigby, and Calavera. I had given a "like" your responses when you had responded, however, I forgot to write this. It was a big help. Thank you

Hi, Thank you as always for all the insights. Can a Hard Frozen DB Plan, (that is owner only), take into account salaries that were taken during the current frozen years. Not to increase the benefits of course, as the plan is hard frozen. Rather, to increase the salary average. The owner is past retirement age and is receiving each year an actuarial increase on his A/B, since he is not taking benefits yet (although plan allows for in service distributions after NRA). However, the AB cannot be increased beyond 100% of average compensation. Therefore, if the salary average is allowed to be increased based on current salaries (even though plan is frozen), then the annual increase on the AB can keep going up until the new higher salary average. Thank you

For some reason, efast does not give an ack id for extensions? Just a Message that successfully filed. Not sure why.

RatherBeGolfing, thank you. It was filed with the efast system and not a 3rd party software. They gave me an option to press submit, and file it, with the error. After hitting submit, they said it t was successfully received.

Hi, Thank you as always for all the insights. The 5500 for a 6/30/2025 plan year end, is due by 1/31/26. This came out on Saturday. Therefore, the 5500 and the 5558 must be filed ON or prior to 2/2/26 (since 2/1 26 was a Sunday). We filed the 5558 on 2/2/26 ( today) with I file and got a validation error that stated " you have filed the form 5558 after the return's normal due date and may not be approved for an extension based on this form 5558 that was submited". I hope this is an error on their part and the extension will be approved? Thank you

Thank you C.B. , as always. I am just wondering is there a way to not have the "sample" show in the background of the SB?

Hi A Happy New Year to All. Is there anywhere on line that one can download a fillable pdf of a schedule SB? Thank you!

Thank you Effen. Your quick response saved me from starting to self doubt.

Thank you very much, Bri, for the clear answer

Hi All, Happy Holidays to All. A DB plan ret age is 62. Employee retirement date was march 2025 but did not receive his lump sum until Dec 2025. He was entitled to his lump sum since March 2025. What rate would you use to give interest on the lump sum from march 25 to Dec 25? Plan equivalence? Thank you

Thank you Effen and Bri. As always your knowledge is much appreciated. There were no missed MRCs shown on the 5500s that were filed. So wondering who told them that this is this case. Meaning, even if this is indeed the case, who informed them of this. However, they don't have a missed MRC. Unless not filing a couple of 5500s is considered a missed MRC?

Hi, A PBGC covered plan received the following email from the pbgc... This letter is to inform you that the Pension Benefit Guaranty Corporation (“PBGC”) was notified that a Reportable Event has happened. According to the information we have received, "A" Corporation (the “Plan Sponsor”) has failed to make the required minimum contributions 1. Who are they referring to when they say they were notified? Who could have notified them? 2. The minimum required contributions that they are refering to are the possible MRC that would be shown on the 5500 (that were not filed for a few years) or are they referring to the pbgc annual.premiums that have not been paid? Thank you as always for any insights.

Thank you Paul I. Yes, the original filing had an extension filed and the 5558 box was indeed checked on the original filing. Will they get confused if both the 5558 and the amended boxes are checked off? Or does it look like asking now for an extension with the amended filing (or does it imply that forgot to ck off the 5558 on the original filing and now fixing that)? Thank you!

Hi Thank you as always for all the valuable knowledge and input. Is there an issue, if amending a 5500 for the current year to have both the 5558 box and the amended box checked off, or don't confuse things and just ck off amended? Thank you.

Hi, WE Filed the calendar year 2023 5500 for a North Carolina plan in September 2025, as was extended first until May 2025 then until September 25, 2025. We checked the special ext box and put on the filingvon the special ext line FEMA-3617-EM. Intresting that the while the pbgc filing was accepted with disaster relief approved (as it should be), however. for the 5500SF, the client received a late filing cp283 notice. At 250 a day, it seems that the e fast system thought that this was a 2024 filing that was due july 31, 2025 and therefore charged for the days of August and September up until it was filed in Sept 2025. I guess we should send a letter stating that this was a 2023 filing (the notice states as well that this is for the 2023) that was extended until Sept 2025?

Thank you, as always, for all the insights. 1 . A Frozen DB Plan, owner and wife only (owner only plan). 2. Plan frozen after 12 31 2017 Avg comp at 12 31 17 was 117,000. Formula was 10% of avg comp for each year of service. 3. Had 6 years of service and 2 years of participation at 12 31 17. 4. As of 12 31 2017 the AB based on percent limit was $5,850. As his avg comp was 117,000 and this was reduced by 6/10 (as had 6 years of service at 12 31 17. (10% of avg comp of 117,000 for each year of service was the formula at 12 31 2017 then frozen) 5. As of 12 31 2017 the AB based on the dollar limit was $3,583, since the 2017 415 dollar limit of 215,000 was reduced by 2/10 to reflect the 2 years of participation as of 12 31 17. 6 . Therefore his benefit at 12 31 17 was limited to 3,583 (lower of the dollar or the percent limit). 7 Question...if this frozen plan allows for increases due to increases in the COLA.. then A. for 2018 would his AB be 3,666? (As the 415 dollar limit went up in 2018 to 220,000 and 220 reduced by 2/10... as had 2 years of participation as of 12 31 17 when frozen.. B. If the AB for 2018 is indeed 3,666 is this shown as an increase with a TNC or the the AB for the FT ( ie AB as of 1 /1/ 2018,) is simply increased and no TNC? C. As the dollar limit goes up each year, would the AB keep going up annually until it hits the percent limit of $5,850 that he had as of 12 31 2017? Thank you very much

Thank you very much, again, CuseFan, Effen, truphao, bri and David.

Thank you David, as always, your knowledge and experience is much appreciated. I just don't understand, if it's allowed, why don't owner only plans include this non consecutive allowance?

Hi, I know that almost all DB plans provide that the 3 highest salary years for the salsry average must be consecutive. However, is it allowed to provide for the salary average to be any 3 highest years, even if not consecutive. A bit generous, but for an owner only plan it might be preferred? It appears that if not consecutive the it creates a definitely determinable issue? Thank you