Jakyasar

Thank you for clarifying.

Mike, did you mean NHCE or non-key I read no keys (e)(1)(E)? This is from IRC 420. Just curious. Thank you

No, DB did not have 401(h), this just came up. They need to shut down the plan as funding is going to be an issue soon. At this time, the overfunded portion is small so trying to take advantage of it before becomes larger. Mike, thank you for your comment.

Hi I was asked the following: Terminating overfunded defined benefit plan (DB) - small plan covering husband&wife - both over age 72). Overfunded portion will be rolled over into a QRP - just a profit sharing plan (PS) Can they pay their retiree medical benefit directly from the overfunded portion? I never heard of but.. Thank you

Hi There is always a first time. Husband&wife (owner and spouse - no other employee) - Virginia sub-s corporation, investment advisors Just found out that, they may have deposited over 6% of profit sharing limit during 2020 (not in 2021). The 31% test does not work as it is a large CB contribution. 6% PS was supposed to be 34k but possibly put in 50k during 2020 thus 16k overage. This is separate than the 401k deferrals. CB was 300k 31% limit is 176k If they made the excess 16k PS contribution during 2020, can they simply pay 10% excess tax and still take 334k deduction? What other solution(s) can be recommended? Thank you

Much appreciated and thank you.

Hi I have not had an overfunded DB plan PBGC termination in many many years. The excess is to be reverted to the employer under the provisions plan document, always have been from adoption date which is 2007. There is also a resolution that the excess will be transferred to qualified replacement plan - QRP. 100% of the excess will be transferred to QRP and all participants in the db plan are actively participating in the QRP. Excess is estimated at 300k. PBGC form 500, line 16a to 17c is where I am having a bit brain freeze to complete. I would appreciate if someone with this experience can share their knowledge. Thank you

Also, Schedule SB's still require wet signatures?

I agree with both, just need to convince others. Thank you both for your input.

Having a discussion (nicely put) that the following DC plan needs a fidelity bond - at least I insist on it: Owner (100%), spouse and 2 adult children. Am I wrong? On the top of your head, do you have a cite for it? Thank you

Best wishes on your retirement, enjoy. Thank you for all your input, always valued and appreciated.

Thank you, appreciate your quick response.

Hi Having a brain freeze as I have not had a low pay out for quite sometime. Is the relative value disclosure required for a lump sum under 5k (over 1k) and if yes, do I need to show the monthly benefit equivalences? Thank you

100% in agreement

Bad reasoning😄 However, i agree with you, wanted to check out there. Thank you

Any takers please?

Oh, seen it many times, they never listen, always warn them about the IRS audit issues but what do I know?

In addition, if a partnership, the partners should not be getting any W-2's.

Terminating an overfunded db plan. Not relevant but 2 participants, owner/spouse. Each took a loan out from the db plan and first payment is due late March. Loan is for 50k/each Each will rollover their lump sum into their respective IRA's and loan will be rolled over into the qualified replacement plan (QRP) before first payment due. Do they need to redo the loan agreement in the name of the new QRP without changing the original provisions? Thank you

Still not clear if s-corp or partnership, big difference.

They want to include. It would have been required if adopted after year end, correct? I am still going to provide one, never hurts (famous last words)

Hi Did not have one of these in many years. Calendar plan. BOY valuation. Amendment to increase benefit adopted before 12/31/2020 but after 1/1/2020. Do they need to adopt some kind of amendment election? Thanks

Just so that it is clear, it should be 161,667 as acc-to-date is based on average?

What kind of an entity is the plan sponsor, a partnership or an s-corp?

Does anyone remember when they were asked this question?