Christopher Wilson

I'm exploring the feasibility of integrating PensionPro with a SharePoint spreadsheet to automate the tracking of workflows. I would appreciate a recommendation for a developer/programmer. Thank you.

Hello everyone. Section 508 of PPA requires the value of each investment to which assets in the participants' account have been allocated to be disclosed for all defined contribution plans. Can anyone steer me in the direction of court rulings regarding this subject matter? Thanks.

Hello everyone, My understanding is that the 2% Shareholder Insurance Premium is included in Code 415 Compensation (aka Current Includable Compensation), W-2 Wages (aka 6041 and 6051 Compensation) and Wages under Code 3401(a) (aka Wages for Income Tax Withholding), but it's excluded from Code 415 Safe Harbor Compensation. I want confirmation that the 2% Shareholder Insurance Premium is a taxable fringe benefit (per IRS Publication 15-B) that is excludable from Plan Compensation under the exclusion "All fringe benefits (cash and noncash), reimbursements or other expense allowances, moving expenses, deferred compensation, and welfare benefits." Thank you.

Hello everyone, Does the 10% excise tax apply to the post March 15th refund of a discretionary match that was calculated and deposited as a lump-sum after the end of the plan year? Thank you all. As always, I appreciate your assitance.

Hello everyone, I appreciate your feedback to confirm my understanding of the interplay between the 402(g) and 415 limit with respect to catch-up contributions. I have a catch-up eligible participant who deferred $24,960 for 2021. Of this amount, $5,460 is considered a 402(g) catch-up. I believe I'm allowed to re-characterize the remaining $1,040 as a 415 catch-up correct? If so, the allocation for 2021 would be as follows: 1. Deferral: $18,460 2. Catchup: $6,500 3. Match: $11,232 4. Profit Sharing: $28,308 5. Total Annual Additions: $64,500 In order for our valuation software to do this calculation requires me to over-ride the participant's 415 limit, so I'm reluctant to do so unless I know for certain that my reasoning is correct. Thank you!

Thank you Kevin. I very much appreciate your thoughtful input.

Hello everyone. Client wants to put in 100% of missed deferral instead of 25% under EPCRS. May a client do that or would the 75% be considered a non-elective contribution?

Thank you for your input. It's greatly appreciated. The document states that Prevailing Wage Contributions will offset QNECs. Therefore, to be crystal clear, I reduce each participant's QNEC that results from the failed ADP test by his/her prevailing wage contribution, correct? No participant is receiving a QNEC greater than 10%. If Prevailing Wage Contributions would be used to offset a SHNE, then it seems that would be provided for under 25.b.iii., correct? 25. Prevailing Wage a. [ ] In addition to any other Profit Sharing Contributions otherwise provided in the Plan, an amount necessary to meet the Company's requirements under an applicable prevailing wage statute shall be allocated. The formula for allocating Profit Sharing Contributions shall be specified in the Prevailing Wage Addendum to the Adoption Agreement. The addition of such Addendum shall not be considered a modification to the volume submitter document. The prevailing wage allocation offset: i [ ] None ii. [ ] The prevailing wage allocations will offset any other Profit Sharing Contribution allocations that would otherwise be made to a Participant iii. [ ] Other: b. [ X ] Qualified Non-Elective Contributions (in addition to any non-elective contribution made pursuant to D.18 and Section 4.04) shall be allocated in an amount necessary to meet the Company's requirements under an applicable prevailing wage statute. Allocations will be made in an amount necessary to meet the Company's requirements under an applicable prevailing wage statute. The formula for allocating Qualified Non-Elective Contributions shall be specified in an Addendum to the Adoption Agreement. The addition of such Addendum shall not be considered a modification to the volume submitter document. The prevailing wage allocation offset: i. [ ] None ii. [ X ] The prevailing wage allocations will offset any other Qualified Non-elective Contribution allocations that would otherwise be made to a Participant. iii. [ ] Other: ______________ [ ] Exclude ____________ from receiving benefits under an applicable prevailing wage statute under this Plan.Other:

Hello, I hope this post finds everyone happy and healthy. I'm relatively new to prevailing wage plans, so I have a few questions. My understanding is that a prevailing wage contribution is treated as a non-elective contribution, so it's included in the gateway and it counts towards top heavy. In this particular situation, the prevailing wage contribution has no eligibility or allocation requirements and it's immediately and fully vested. The ADP test is failing, so to what extent, if any, can the prevailing wage contribution be treated as a QNEC and be included in the ADP test? Can an immediately fully vested prevailing wage contribution be treated as a safe harbor non-elective contribution and, if so, can this be done operationally or does it need to be stated in the plan document?

Hello everyone. I hope this post finds you all happy and healthy. I have a client who is making deposits to the trust account in the same amounts as the advisory fees to "reimburse the plan for the advisory fees." I know that such deposits must be treated as nonelective contributions, but for the life of me I can't find the citation. I would appreciate your help. Thank you.

Hello everyone, Hope you all and your loved ones are safe. My three questions pertain to the extent to which contributions to a defined benefit plan are deductible by individuals with earned income from a sole proprietorship, partnership or LLC taxed as a partnership. In my situation, I have a defined benefit plan for which the members want the maximum contribution. The plan was effective in 2015 and the definition of average compensation is the highest average of three consecutive years. Year Member 1 Member 2 2015 $265k $104k 2016 $160k $35k 2017 $230k $130k 2018 $5k $99k High-3 Avg $218,333 $89,667 Each of the two members of the LLC have equal ownership and have earned income (K-1 ,Line 14A) of $276k. When I run the valuation using zero compensation for the members, I'm getting minimum and maximum contributions of $216k and $620k, respectively. Intuitively, however, I don't think the members can contribute $620k because their earned income isn't sufficient. I believe the maximum db contribution is $528,618: Earned Income: $276,134 - SE Tax Deduction: $11,825 - 50% of Staff Cost: $8,394 = $255,925 $255,915 x 2 = $511,830 $511,830 + $16,788 = $528,618 Am I correct that the maximum deductible contribution cannot exceed $528,618? My actuary says that we shouldn't opine about the whether the $620k is deductible because there may be circumstances where the deduction could be higher than the net K-1. Whether the $620k is deductible is a question for the client's accountant. However, the accountant is asking me to verfity whether or not the $620k is deductible. I'm stuck in the middle, so that's why I'm reaching out to you. My second question is if the members were to increase their earned income to $322k each, could they then contribute $620k? Earned Income: $322,000 - SE Tax Deduction: $12,439 - 50% of Staff Cost: $8,394 = $301,167 $301,167 x 2 = $602,334 $602,334 + $16,788 = $619,122 My last question is if the client wants a contribution greater than $620k, then wouldn't the earned income have to be significantly higher to increase the average compensation to generate a higher benefit?

Hello everyone, I hope you and your loved ones are well. For a sole proprietor who sponsors a defined benefit plan, how does one determine how much of the contribution gets deducted on Schedule C for the employees and how much gets deducted on Form 1040 for the sole proprietor?

Hello. I hope this post finds you and your loved ones healthy. I currently have a balance forward 401(k) plan, and I'm looking for a recordkeeper that has a platform which would permit participants to select a risk-reward portfolio instead of individual mutual funds. The plan sponsor would construct the portfolios using the recordkeeper's mutual funds. The participants wouldn’t direct the investment of their separate account, but rather they would select a portfolio. Participants's accounts would be updated daily. Thank you.

I'm speaking of a weighting factor often applied to deferral and per pay period matching contributions deposited during the year to a pooled plan. So earnings are then allocated on BOY account balance plus 1/2 of the contributions made during the year. A reasonable approximation if the contributions come in evenly throughout the year.

Hello everyone - I hope you all and your loved ones are well. Can anyone provide me the IRC section for the 0.5000 safe harbor weighting for contributions?

Hello and Happy New Year. I have a controlled group of two companies. Company B isn't a participating employer. For what purposes is compensation aggregated among controlled group members and for what purposes is it not? When performing the ADP/ACP test, do I only use compensation paid to participants by Company A since compensation paid by Company B isn't eligible for deferral? Thank you.

Hello everyone - I'm double-checking my understanding of the nondiscrimination testing rules with respect to separate plans maintained by members of a controlled group. Each spouse has a separate business and sponsors a plan. Husband receives compensation from his wife's business. When performing nondiscrimination testing for the wife's plan , I believe you only use the compensation paid to the husband from the wife's business, correct? In other words, you don't aggregate compensation paid by two different business even though those businesses form a controlled group. Thank you for your comments.

A plan accepts rollover contributions of participant loans. The plan permits only one loan outstanding at a time. A participant has two participant loans with his former employer. Is he permitted to rollover the two loans or only one of the loans? Is the treatment of the two loans determined with respect to the plan's loan policy or rollover contribution provisions?

Hello everyone - should the check mark column after the participant's last name on Form 8955-SSA be checked if one does not verify that the name being reported matches the name on the participant's social security card or is the check mark column to only be used for the two stated reasons? Is an "unverified" name considered to be part of an incomplete record? Line 9, column (c). Enter each participant's name exactly as it appears on the participant's social security card. Do not enter periods; however, initials, if on the social security card, are permitted. After the last name column, there is a check mark column. Check the box for each participant whose information is based on incomplete records. Information for a participant may be based on incomplete records where more than one employer contributes to the plan and the records at the end of the plan year are incomplete regarding the participant's service. Check the box next to a participant's name if: 1. The amount of the participant's vested benefit is based on records which are incomplete as to the participant's covered service (or other relevant service), or 2. The plan administrator is unable to determine from the records of the participant's service if the participant is vested in any deferred retirement benefit but there is a significant likelihood that the participant is vested in such a benefit. See Regulations section 1.6057-1(b)(3).

Hello everyone - is anyone aware of having to no longer complete Schedule D for a large plan with assets invested in a Transamerica group annuity? According to Transamerica, no Schedule D is required because Transamerica is not a Direct Filing Enitity (DFE) and, therefore, the plan's assets should be reported as being held by a registered investment company (Schedule H, Line 1c(13)) rather than being invested in pooled separate accounts. Thank you for your assistance.