Minnesota planner
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I am considering selling my TPA firm.I am looking to sell it for 1x annual revenue with a continuation on of the employees. Please let me know if you have any interest.
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Can a deposit made during during one plan year be partially deducted in that year and partially deducted in the following plan year? (The total amount was within the limits to be deducted in the first year.)
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*sorry for the typos which are as follows: ”poyrmyially” (??!) Meant to be “this time” “We have been are” ...sb “we are getting strong pushback on this for this planas well as the last one we had so wanted...” Thanks for you thoughts
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The issue I see is that actually one of the HCEs is not an owner and plan is subject to ADP testing. Last year refunds were required. Also part of plan year end process is reconciling deposits made into the record keeping vendor to verify 401k deposits match payroll reports /W2 and then assist with adjustments. We do know in this case it is not top heavy so poyrmyially having to make those contributions is not an issue. The recordkeeper platform requires fees be paid and potentially fixed account adjustments when a plan terminates and participants get paid out. For those types of reasons our firm has required plan year end (incl short plan year end) work to be completed before participant payouts occur. We have been are strong pushback in this case so wanted to see if there was a rule to fall back on supporting what we do. On pooled plans in past always had to do final allocation of gain loss as in plan year end work as well to determine ending balances. So that model has prevailed although now for different reasons.
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Asset sale occurred 11/2, plan termination effective date is 11/3, seller (sponsor of plan being terminated) says employees were terminated on 11/1. This is a tested plan but only owners are HCE's. There are no Employer contributions. Can non-owner employees be paid out on 11/30 before any year-end work is done technically on the basis of being terminated employees vs. for the reason of the plan termination?