Jakyasar

Wow, never heard so quick but thank you for sharing this with the board/me.

Thank you, great point.

Thank you for your input. I have done this many years ago and PBGC had no issue. The problem here is that if they reject and do not let me know in a timely fashion, can blow the time line. I will wait till early 2021 to do it. Have a great weekend.

Hi DOT is 12/31/2020 NOIT - termination notice - given by 10/31/2020 - to satisfy 60 days NOPB - notice of benefits - given by 11/9/2020 Can I file 500 with PBGC on 11/10/2020 or have to wait till after 2021? I believe it can be done earlier i.e. do not have to wait till 1/1/2021 but cannot remember. Thank you

My position is if the plan had last day rule and amended by 12/30 i/o 12/31 (assume calendar plan), the allocation method can be changed without any 411d6 issue. Last day rule is a condition to satisfy eligibility for an allocation.

Other than the additional cost, none but it is their decision to determine the cost effectiveness of adding a second plan. Thank you all for your comments

Very interesting, thank you for sharing but unless the document got an IRS opinion letter, not sure if it would fly.

Only if they pass the true independent contractor rules, just because 1099 does not mean it is.

My plan does not allow PS provisions at all nor have any. Interesting approach by B. Parvarandeh. But i do not believe it can be a separate plan unless a separate plan is set up for ps provisions only. Agree?

Hi Having a bit of brain freeze again. Current plan has only 401k and SH provisions. Effective date of the plan is 2017. Planning to add PS provisions for 2020 (never had before). As with the addition of the PS provisions and the vesting for PS, can the plan exclude service for PS portion? i do not think so as this is an ongoing plan but just curious if I missed something here. Thank you

You are correct on all accounts. Thank you

Cusefan, correct however, even if the key is not getting any PS allocation? There is only PS provision, nothing else in the DC plan. Lou S. t/h is provided by DC plan only and key employees are excluded. In my case not getting any PS allocation. The reason I am asking is that, is 5% required for the non-HCE because the key is getting over 3% of accrued benefit under the DB plan which is equivalent of 5% in a DC plan? Bonus question, what if the key was getting only 2% under the DB plan? Thank you both for your input.

Hi Having a bit of brain freeze. DB/DC combo, both plan t/h. DB does not provide t/h and also no t/h for key under DC. Plans tested together I have owner, a non-owner HCE and NHCE, total 3 participants. Non-owner HCE gets 0.05% in DB for 401(a)(26). NHCE is only covered under DC. For 2020, gateway requirement is 5%. The owner does not want any PS allocation and will only get 3.5% of compensation as AB in the DB plan. Under gateway, NHCE gets 5% in DC. What is the minimum t/h I have to provide to the non-owner HCE under the PS plan? 3% or 3.5% or 5% Thank you

Hi all I am with Peter on Bill's contribution of knowledge. Thank you all for confirming my approach i.e. cannot be changed though I need to think about the 2 plan approach, very creative. To answer B. Parvarandeh, I am dealing with an ERISA attorney and I am not budging. Be safe all and have a great week, 3 more days to 10/15.

Hi You can do either, instructions from 2019 EZ. It is also valid for determining 250k limit, if I understand it correctly. The cash, modified cash, or accrual basis accounting methods may be used for recognition of transactions in Part III, as long as you use one method consistently.

Very good point, thank you for sharing. In this case, would 5310-A filing for merging plans be required?

Hi Having a discussion with an agent and attorney for a plan of theirs and I am not in agreement with what they are saying. Current document's ps provisions are: - No last day rule - No hour requirement - Comp-to-comp allocation The attorney states that, since no ps contributions were made during 2020, the allocation method can be changed now or by end of year so that, each participant can be their own group. The contribution will be made after the plan year. Can they? Just want to check others' opinions and see if i am missing something here. Thank you

Indeed Thank you all

Thank you for your time/comment

If I recall correctly, it is a non deductible amount being subject to any taxation/RMD in the future upon distributions/terminations/rollovers. A topic for another time.

No 415(c) limits are violated on both the dollar limit as well as 100% compensation limit. The problem of course is in the future when it comes to distributions. Trying to get the CPA change the tax return. Thank you for your time and input.

Actually one follow up, what happens to the 2k, is it allocated in 2019 or 2020? Thank you

ESOP Guy & Bill, thank you both for your comments

Hi Thank you both for comments. I need to add the fact that the overall deductible limit for 2019 for 120k. So, even though they did not exceed the deductible limit, they under deducted and will not be changing. Based on above, is the 2k subject to any penalties? Any other issues? My apologies as I did not make it clearer before. Thank you

Hi If 110k is contributed during 2019 and only 108k is deducted (CPA is not changing the deduction), is the excess 2k considered excess for 5330 penalty or can it be applied towards 2020? Thanks