SSRRS

Thank you Paul I. Much appreciated. Yes its a 5500-SF. Can filing with the DFVCP, help prevent an examination? And if the plan starts the process by ,for now, at least paying the DFVCP fee on line ( and then work on getting the complete information to actually file) help to show that the plan is complying and hopefuly this can stop an examination?

DB plan received an IRS compliance check for non filing of 5500. They didn't respond in time and now received a notice that that since they did not hear from the sponsor they are refering the case for examinstion consideration. And you will be notified if your return is selected for examination. Could the sponsor still file now with the DFVCP? And would this help stop further action? Thank you for any insights and help

Thank you Lou S. I guess even for those who don't amend unless they really really have to, would agree that in this case it must be amended to include the attachment ?

Hi, Thank you as always for all the insights. A DB plan that has a shortfall shown on the SB, was efiled, however, the attachment for the shortfall amortization was not attached to the filing. The rests of the attachments were properly attached. It shows up on the e fast that the forms were received. However, on the filing system a error message shows, since it is missing this attachment. 1. Must this filing be amended and then refile and include this attachment? 2. The original filing was filed under the special extension until Feb 3rd 2025 (extended past 10/15/24). If it needs to be amended, should the amended box and special extension box both be checked off or just the amended box. Or to be safe just check both boxes? Thank you!

Thank you very much Peter. Your vast knowledge is always appreciated. 1. This entity appears to have to file only the 990N (postcard) as receipts are less than 50k...as NOT in business for 10 years already...(just have not paid out all the veba participants so plan has been kept going all these years...) 2. Or maybe not required to file even the 990 N since out of business for so many years? 3. What if they have not filed the 990N postcard for at least 3 yesrs alrwdfy...is there a DFVCP for this... 4. I did notice a source that 990 N has no late filing penalties...HOWEVER, if not filed for 3 years, then loses it's tax excempt status. 5. If this company that sponsors the VEBA (out of business 10 years) also has a DC plan ..(most of participants are the same for both veba abd DV plan)...can the veba be rolled and merged into the DC plan...With of course, accountinh each year to keep the assets of the veba as a rollover. Amount...ie separate from the DC plan assets...but will be one DC plan? Is this allowed? Thank you very much.

Hi A Happy New Year to all of you. Thank you in advance for any insights on this. 1. If there are only $76,000 IN ASSETS, in a veba plan. that has not had a contribution for at least 15 years , and all participants in the plan were terminated 10 years ago at least, still required to file a 990-EZ, since assets for all plans for this entity are under 250K? Also, in general is a 990 still required to be filed for Veba plans or a 5500 SF is sufficient? 2.IF YES, must the 990 be e-filed, and mailing it in is not allowed anymore? 3. Can this Veba plsn merged with a mp plan of the same entity...(with of course properly allocating, ie prorating, the assets for each of the 2 plans annually)? Thank you, as always, for any insights

If filing for a client 5 years of 5500s for a DB plan with the DFVCP, can you charge for this service. What is reasonable? Hourly rate for the time spent on this? Thank you for any thoughts.

Hi A Happy New Year to all of you. Thank you in advance for any insights on this. 1. Is a veba plan , with only $76,000 IN ASSETS. that has not had a contribution for at least 15 years , and all participants in the plan were terminated 10 years ago at least, still required to file a 990 (EZ)? As assets for all plans for this entity are under 250K? Also, in general is a 990 still required to be filed for Veba plans or a 5500 SF is sufficient? 2.IF YES, must the 990 be e-filed, and mailing it in is not allowed anymore? 3. Can this Veba plsn merged with a mp plan of the same entity...(with of course properly allocating, ie prorating, the assets for each of the 2 plans annually)? Thank you, as always. for any insights

Thank you. 1.Does this mean that you frown on a DB plan in general, investing in RE? 2. The main Focus of the original post, was as to the legality of a second large plan investment in RE. The sponsor would like to, but is hesitant if there are any IRS issues? Thank you in advance.

Thank you Paul I! I appreciate it. Just trying to understand the point about that it depends on the financial situation of the owner. If they are using plan assets to purchase this investment, why does his financial situation play a role? Thank you.

Hi, Thank you all as always. A owner only DB Plan (husband and wife), has about 4,500,000 in assets. Part of the assets is a condo worth 1.5 million (they rent it out). They would like to invest further in real estate and have the plan purchase another condo, worth aprox 2 million, however the seller is willing to agree to sell it for 1.8. Is it advisable to purchase another RE Investment? It is in the same area as the first condo, so that might play a role in lack of diversification? Thank you

Thank you! So we will write in the letter serial number.

Peter Gulia, your analytical and sharp knowledge is much appreciated, as always. I will look into the information for this particular case.

C.B. Zeller, thank you so much! Yes, i have a copy of Watson's publication. Great idea. Thanks!

The trust owns the s corp, however, the question is, does the fact that these 2 are the beneficiaries of the trust, deem them to be 5% owners and thus HCEs?

Trust owns s corp. The pres and sec of the s corp are the beneficiaries of the trust. Are they therefore considered owners of the s corp and therefore they ate HCEs irregardless of their salaries being only 100K? Thank you!

If forgot to answer the new compliance question number 12 re the preaproved document letter serial number..CAN it be written in ...as EZ are mailed and not scanned? Thank you

The extension applies now to ALL of Florida (all counties). See https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-milton-various-deadlines-postponed-to-may-1-2025-in-all-of-florida

The extension applies now to ALL of Florida (all counties). See https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-milton-various-deadlines-postponed-to-may-1-2025-in-all-of-florida

https://www.irs.gov/newsroom/irs-relief-now-available-to-hurricane-debby-victims-in-all-of-south-carolina-most-of-florida-and-north-carolina-part-of-georgia-various-deadlines-postponed-to-feb-3-2025

Thank you Paul I....The 5500- EZ were mailed, not efiled, and used the corporate EIN on the filing, as is required. The EIN is still in effect, just the bank will open the new checking account under the social of the plan sponsor (ie the owner and sole participant in the DB Plan). The bank is not changing the corporate EIN just using his social going forward on the account, as opposed to the EIN that was used until now on the account. The bank does not prepare the 5500EZ. He does not want to terminate the plan, rather the bank on their own is converting the account from a business account to a personal account. Would the bank listen if we csll them and state that they are not authorized to force a tax liability (distribution) and they must keep the account the way it was for the past 15 to 20 years? It seems a many banks do not want to deal with pension accounts anymore Thank you.

Thank you Lou and David. Is the bank allowed to do this? Meaning how can they just go ahead without permission from the client and "execute" this taxable distribution?

Hi All, Thank you for all the insights and valuable knowledge always. A DB Plan, owner only, had the assets held in a checking account for about 15 years. It was a checking account in the name of the plan..ie John Inc. DB Plan, and the corporate EIN. The bank now sent a letter that they are converting the account from busniess account to a personal account and in a separate email the bank states that the EIN will be taken off the account and the owner's Social Security number will be used on the new account. Question: Can this be deemed a taxable distribution ( even though it was does against his will), and is it a problem to keep the new account as is with the Social Security number, if the account is still labeled Defined Benefit Plan? Thank you.

Hi Thank you as always for the insights. We need to Efile a 2020 5500 for a DB PLAN with the DFVCP. The new rules say we must efile 2020, and prior years, using the 2023 forms. I noticed on line that however, for the SB the correct year form can be used and signed and attached as a pdf to the e-filing and to label it other attachment. Question. Does this mean that we only file the 23 5500 and the sb is only filed as a pdf attachment? OR IS the 23 SB filled out for the 20 year, and efiled along with the 5500sf. And then 2 sb attachments will be attached. One attachment being a pdf of the signed 23 sb(with the 2020 on it obviously) that is labeled mb sb actuary signature and then we must attach a pdf of the signed copy of the 2019 year sb labeled other attachment? Thank you.

Maybe this question is more clear. For the 2019 and 2020 years it seems that the recommended form to use is the 2023 5500 and we are supposed to enter the 2019 dates on the 2023 formh. Question...if we file the 2019 using a 2022 form (and not on the 23 form) would this be accepted? Thank you.