SSRRS

DB Plan, owner only, and EZ Filer. Recived a IRS notice 238, that for PYE 12/31/2017, penalty of 150k. He has filed all timely. Even more perplexing is that the notice states clearly that for plans up to 12 31 19 the max. penalty is 15,000 and for forms due after 12/2019 max penalty is 150,000. Since this notice is for the 2017(due prior to 12/2019) year why are they charging above the 15,000 maximum.penalty? I did hear that OGDEN (where they recive the 5500EZ filings) was still closed at October 15, 2020. Are they processing the 2019 fotms now and saying that they are late? On the other hand the notice says this is fire the 12/31/2017 year end. Thank you very much.

I hear. Thank you.

Hi Just to clarify the original post. I hope all are well. If a pension plan in the covered area that received an extension for ida until Jan 2022, is in middle of an IRS audit and the agent had sent a request for information and documents that was required to be responded to by 9/5/21. Would the plan now have until January 2022 to respond to the agent that is handing the audit? Thank you.

Thank you. I just want to point out that this is a traditional DB, not a CB Plan.

Thank you. If the sponsor (company) signed the document and agreed to this provision, of having a yearly exhibit, would they still have to sign the exhibit each year-meaning signed each year prior to anyone working 1,000 hours, prior to accrual of accrual of benefits, or it is not necessary ? Thank you very much

Thank you very much. If it's drafted before anyone accrues a benefit for the year, ie prior to working 1,000 hours (by March, or early April)? Also, if the sponsor (company) signed the document and agreed to this provision, of having a yearly exhibit, would they still have to sign each year? Thank you.

Thank you very much.

Thank you. Can you please clarify?

Hi, In a DB Plan Document (the plan uses a Safe Harbor benefit formula), in the eligibility section, are the following provisions: "(1) Eligible Employees. For purposes of Section 2.1(b), all Employees are Eligible Employees except for the following ineligible classes of Employees: (A) Union Employees; (B) Non-Resident Alien Employees; and (C) Employees not listed on Exhibit A." For each plan year the Exhibit A is updated to list the employees that are eligible and all employees that are not listed are ineligible . The plan covers, each year, enough employees to cover 410(b) and 401 (a)(26) each year. A new Exhibit is created for each plan year , and the document contains the yearly Exhibits. Are there any potential issues with this method? Thank you very much for your insights.

metsfan026, your question is addressed towards the end of the following post

Hi I hope all are well. If a pension plan in the covered area, is under IRS audit and the IDR response due date falls between Sept 1,21 etc...would the plan now have an extension until.Jan to respond to the agents questions etc.? Thank you for any help with this.

In addition to Profit Sharing contributions being extended, it appears that a DB plan that has a zero minimum required contribution and a maximum of 126,658, can make a contribution up to the 126K maxium by January. As the maximum is based on 404.

Metsfan026 posted this in the 401K Plan Section in regard to contributions being extended beyond September 15th: I just want to make sure I'm reading all of this correctly. Under the Hurricane Ida Relief it says: The IRS also gives affected taxpayers until January 3, 2022 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after September 1, 2021, and before January 3, 2022, are postponed through January 3, 2022. As part of Treas. Reg. § 301.7508A-1(c)(1) it says: (c) Acts for which a period may be disregarded—(1) Acts performed by taxpayers. Paragraph (b) of this section applies to the following acts performed by affected taxpayers (as defined in paragraph (d)(1) of this section)— (iii) Making contributions to a qualified retirement plan (within the meaning of section 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 404(m)(2); making distributions under section 408(d)(4); recharacterizing contributions under section 408A(d)(6); or making a rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3); Paragraph (b) discusses the delayed deadline. So does this mean contributions due by 9/15 are delayed to January 3? Thanks in advance everyone!

Metsfan026 posted this on the 401K Section in regard to contributions being extended beyond September 15th. I just want to make sure I'm reading all of this correctly. Under the Hurricane Ida Relief it says: The IRS also gives affected taxpayers until January 3, 2022 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after September 1, 2021, and before January 3, 2022, are postponed through January 3, 2022. As part of Treas. Reg. § 301.7508A-1(c)(1) it says: (c) Acts for which a period may be disregarded—(1) Acts performed by taxpayers. Paragraph (b) of this section applies to the following acts performed by affected taxpayers (as defined in paragraph (d)(1) of this section)— (iii) Making contributions to a qualified retirement plan (within the meaning of section 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 404(m)(2); making distributions under section 408(d)(4); recharacterizing contributions under section 408A(d)(6); or making a rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3); Paragraph (b) discusses the delayed deadline. So does this mean contributions due by 9/15 are delayed to January 3? Thanks in advance everyone! Quote

Thank you. However, this is a Profit Sharing Plan, and the only options offered are Lump Sums or partial lump sums.

C.B. thank you so much!

Thank you very much BG5150, CUSEFAN, and C.B. Zeller. In this case, the administrator (owner and wife) took the RMDs, and therefore, an election form should not be required based on the above. What if an agent (audit) is asking for executed distribution election forms for these RMDs?

Hi, The owner (active) of a corp took his RMD from his Profit Sharing Plan (his prior year end assets divided by age factor). Since this is an RMD, and he is not electing a benefit etc, is an executed distribution election form not required? Thank you.

Thank you.

Can the run the valuation for this first year, using just the current year's salary, since this is the only salary earned at this point (as company only in.existence one year so far)?

Hi Owner only plan. The first year of plan is also the first year of the company. Therefore, there is at this point, only one year of salary. If the plan's benefits are based on a salary average of the three highest consecutive years of salary, how is the average determined for this first year? Thank you

That is part of what was throwing me off.

Thank you. So it appears that he can not use the full 1099 amount, rather the net schedule C income. Correct?

Hi, I hope all ae well and healthy. A doctor owns a PC, with no other employees. He received a 1099 from the PC for quite a few years. Can this 1099 income be used as compensation for his DB Plan? Thank you.

Thank you, so indeed August 2nd was the last day the 5500 or the 5558 could be filed for calendar year filers.