Jakyasar

That I agree but mine was a practical approach question. I have every intention getting an ERISA attorney involved, if I take the case. I just want to find out what other DB/CB gurus or actuaries do in these situations.

That's not a problem.

Hi Bill Thank you for your sound advice. It is not a la carte work, it would be a full buffet, I would be taking from the beginning and fix everything, each step of the way. What I am trying to understand is, what and if VCP filing needs to be involved and that is where I get an attorney involved. I am trying to understand if I can make all these corrections under EPCRS or SCP.

First time thinking about helping someone who has been delinquent for 3 years and wanted to check what others think and needs to be done, never had to deal with it before for 3 years. This is outside my comfort zone but may make an exception due to relationship, depending on the data I will getting. CB plan effective 2022 One lifer Is delinquent for the following (has initial document, not sure if cycle 3 is done): 1. 5500EZ filings for 3 years - easy to fix assuming no letters received from IRS. 2. Schedule SB certifications for 3 years as no valuation has been done 3. AFTAPs for 2023 and on - first 5 years rule may help here Has been depositing same amount each year and taking deductions. Any suggestions/comments on what to do on to correct all this and bring the plan into full compliance?

Great and thank you

Sponsor wants to pay the PBGC premiums directly from plan assets however, 2026 instructions are specific on no paper check. Has anyone dealt with a situation like this and if yes, what was the solution? Not sure if the plan can transfer the premium to the sponsor and the sponsor can then pay PBGC.

Will do but a project after 10/15, hope all is well.

Good point, thank you

This is not an 11-g issue at all. They simply do not have the cash flow. they barely made the CB contribution by 9/15 after hearing the penalties. I wanted them to finalize the DC component by 10/15 but not going to happen. As I said before, never seen this nor had to deal with it and quite concerned, for the lack my not being knowledgable about it.

Cannot remember this from previous discussions. Calendar CB plan. All rank&file terminated in 2025 and paid out in 2026. Only owners left in the CB plan for 2026 and on. Just obtained a PBGC exemption letter stating PBGC coverage no longer applies effective 8/15/2026. As the CB plan was covered by PBGC during the earlier part of 2026, can they still get 25% DC deduction for 2026 or now that no longer PBGC covered, they need to be limited to 6% deduction limit for 2026% Thanks

In previous various discussions on this board going back a few years, it was somewhat agreed that it an EZ filing. The reason I brought this up again is because the owner is not participating, if he was, IMHO, it is an EZ filing. FWIW.

Filing separately has nothing to do with family attribution rules under 318 and 1372, the instructions as explicit on being an "s-corp" and family members thus parents are covered under attribution rules. This also is an exception to Title I coverage (FYI, this plan is title IV - covered by PBGC)

Thank you for the response. First 2 is not an issue as they do not care about the deduction and there is no 415 limit, nowhere near. Thankfully I forced them to freeze the CB plan early in 2026 once I smelled the problem. So the deduction shift to 2026 will not be an issue. Aware of item 3. As for item 4, allocation and making the contribution towards that allocation is where I am quite concerned with this particular client especially meeting the gateway and top heavy requirements for 2025. I was hoping that they would finalize the contribution by 10/15 but looks like they will not do it which makes me very nervous for complience. As I said before, never ever had to deal with this in forever.

This is a situation I have never encountered before in all these years (too many of them) and the client just dumped it on me today. CB/DC combo. CB funded by 9/15. DC SH and PS will not be done by 10/15 but by 12/31. PS portion is also towards gateway and top heavy- standard. 2 questions: Is this approach kosher? What if they do not complete by 12/31? Top heavy, SH and gateway for 2025 is not satisfied Any other issues I am not anticipating? Thanks

Plan cover the 4 children of the owner (sponsor is s-corp) - owner is not a participant. Can this plan file 5500EZ? I say yes, agree?

Yes it is. There was nothing missing. This is new as all year nothing happened and suddenly now an issue.

The 5500 was prepared with all capital letters. 5558 was prepared with both upper and lower case letter. Vendor check generated an error stating the 2 forms do not match which was not error before. Vendor said it is probably because of the above. This is something new? Why should it be an error? Checked both forms for other mismatched information but there was none. Anyone encountered anything like this?

Thank you for confirming my findings (or lack thereof). Follow up The penalty is not tax deductible correct? What is an acceptable way to calculate the penalty? As only the owner plan, is 5330 required?

Yes, owner gets a paycheck. I am assuming they were withheld from the paycehck as the w2 shows a ROTH deferral.

9/15 is the deadline. It is Roth deferral Thank you for your input

Owner only 401k plan. Owner deducted 23k for 2025 on the w-2 but deposited just now. What kind of correction is needed, if any? If need to adjust, I am assuming DoL calculator cannot be used, correct? What other means can be used? Let's say the correction is $100, is this a deductible expense? If yes, would be for 2026, correct? Thank you

Any takers? This post was merged with another posted the same day.

Have been reading and researching on this and getting very confused and losing my mind. Hopefully some has an insight. Never did this before and need to (CB plan - PBGC covered, top heavy and NOT underfunded). My system does not to prior benefit structure testing so need to do all manually (confirmed with the vendor). Plan effective 1/1/2021 and combined with a DC plan. Plan is hard frozen early 2025 with no one accruing a benefit (except one owner getting AE increase as past NRA). I do not see any relief under SECURE 2.0 for this. I did the prior benefit structure testing and failed by 1 so need to 11-g. The confusion (or not understanding) I am having is that the 11-g is for a current year increase so how do I include this person into a testing that is performed at beginning of year? This person will have 1 additional year of accrual/participation versus others. I am sure I am not making sense here or totally missing something. Thank you for your time and any insight you can provide.

Hi all Does anyone have a good write up on how to perform 401a26 prior benefit structure testing and how to perform it especially with some examples? Doing some research getting some conflicting information. Basically, have a hard frozen plan in 2025 (early in 2025 so no accrual) but the plan is overfunded so subject to 401a26 - this is confirmed. Also, terminated the same plan in mid-2026 and again need to test it for 401a26. From what I understand, I can pick the termination date of 7/31/2026 as spot check date for 401a26, correct? This is the first time I have to deal with it. Thank you

Not at all conflated. Dealing with keys only. No HCE and no key are benefitting under the DB plan and only getting non elective safe harbor in the DC plan. In my case they are one and the same.