SSRRS

Hi, There is an existing DB Plan with the only participant being the owner. The Corp then hires an employee and wants to join a PEO. How dies this effect the existing DB Plan? Is the new employee really an employee of the Corp? Thank you.

Thank you as always for the insights and knowledgeable responses. A portion of a Plan's assets were discovered as unclaimed funds and returned to the plan sponsor. This was done by a company that specializes in finding unclaimed funds, and this company is charging a fee (commission) for finding these assets. Can plan assets be used to pay this fee? Is this considered a settlor or a non settlor expense? Thank you.

Thank you Bird. Just to clarify... 1. The 60 days is so that the deposit of the plan assets into the Corp account should not be a distribution (similar to when a participant deposits into his account and then within 60 days rolls into an IRA). 2. The plan terminated over 20 years ago. That is why there were no plan doc restatement etc over the years.

Thank you Bill. Much appreciated. If this is not an option (or maybe If a plan document is required and not available anymore from 20 years ago) is it not advisable to deposit it into the sponsor corporate account and then to the IRA, or does the fact that it will be rolled out into the IRA within 60 days, somehow make it more justifiable?

Hi, An MP Plan, owner only, terminated 22 years ago. The owner (plan sponsor and only participant) now received from unclaimed funds, a check made out to the "xyz corporation mny purch" (plan sponsor) for $200,000. There is no plan account anymore. To facilitate a non taxable rollover of this money purchase check to the IRA of the owner, can the check be deposited into the Corp account AND then within 60 days be transfered into the owner's IRA? Similar to a plan distribution that was deposited into the personal account of a participant, that can be transferred to an IRA within 60 days to be a non taxable distribution? Thank you very much for any insights on this.

Problem is ...this late entering of the 5558 into the system is the cause ,some times, of plans getting a late filing penalty notice.

Thanks Nate!

Thabk you again.. Is there a time frame to file an amended return that includes the SB, to avoid the IRS sending the client a letter, re the missing SB. Meaning, does the IRS not send a letter before 15 days or so, or is there no way to know this and just amend asap and hope that it was amended prior to it being picked up? Thank you.

DB Plan owner only . Plan effective 1 1 2014. Owner was working since 2003. Frozen after 12 31 16 year (3/1/2017 frozen) Avg salary 263,000. Terminating Plan now and overfunded. Plan provides to allocate excess assets to the participant up to the 415 limit. Is the 415 Accrued Benefit $5,250 (as the 415 benefit at 2016 was 17,500 and three years of participation at the freeze date of 3/1/2017)? Or is possibly higher due to increases? Thank you very much for any insights.

Thank you so much, the pension maven!

If this is an owner only plan, then aren't you correct in filing the EZ?

Thanks so much Nate. If on the first filing (without the SB), on the 5500-SF, the form SB was not checked off as being required, in the interim, until the filing is amended to include the sb, would that help?

What are the ramifications, if efiled without the SB and then amend a couple of days later to include the SB? Thank you!

Thank you Effen. The accountant is complaining that now with the prepaid off the books, the value etc is lower. This effects if they need a bond etc as thier value is lower.

It was an owner only plan. The owner and his wife both elected a lump sum rollover and the spousal waiver consents were executed.

Thank you.

Truphao, thank you very much. Your knowledge is much appreciated. Can this potentially have a tax impact, since an expense of 567,000 will have to be used to wipe out the prepaid of 567,000? I'm just trying to get a better understanding. Thanks!

Hi A DB Plan on 01/01/2022 had a prepaid (FASB) of $567,000. The plan terminated in November 2022 and the assets were rolled over into IRAs in November 22. At 12 31 22 (and forward) what happens to the prepaid? Thank you very much.

Is there a reason that this unreasonable penalty is not being contested by any of the organizations?

CuseFan, do you recommend the provision of using a special valuation date? Thank you.

Hi Everyone, How does the following provision in a DB Plan document sound to you? " For Employees paid both on a commission and base pay basis, compensation shall be limited to $60,000." Thank you as always.

CuseFan, thank you very much! And thank you ALL for all your insights and knowledge!

Thank you Jakyasar and Bri. ..Jakyasar while I hear your point of the participant complaining due to the significant difference between the 2021 and 2022 rates., however, what was really bothering me is the following: If someone wants to the ethical and right thing and not take away money that realty should be due to someone-then it would seem that the right thing to do would be to work it out somehow (amendment etc.) to ensure that the larger lump sum is given (even if the participant does not realize the difference in the rates-just want to do the right thing)--Yet, on the other hand it is bothering me that maybe by giving the larger amount, this might be taking money from the sponsor, as maybe the sponsor would say that it could be that while the larger lump sum should have been given, however, we are now in 2023 and therefore the 2022 rates should be used and thus give a lower lump sum. Would it be advisable to give the sponsor a choice and ask him if he is ok with giving the larger lump sum or if he wants to use the lower amount- as this way we know for sure that we are not "harming" the sponsor in our attempt to do the right thing for the participant? Thank you ALL for any INSIGHTS ON THIS.

Thanks, as usual you put it perfectly.

CuseFan Thank you for your insights. As you mentioned, the 30 day notice would have been for sure waived, as the participant wanted the money asap. Since reasonably, the participant should have received his options by mid December 2022 therefore technically the larger lump sum is owed to him (as if things were completed in the proper timely manner, the larger lump sum would have been used) and therefore, by giving the larger lump sum, we are giving the NHCE what is truly owed to him and money is NOT being improperly taken from the sponsor? Thank you