MBCarey

I need to do the same thing. Can you tell me, did you file all the late 5500's electronically and then apply? If so, what year form did you use? I have to file for about 6 years. The filings were done but the client did not send them in.

Can you someone help me clarify the vesting for one of our participants. Plan uses "elapsed time" for eligibility and vesting. One year service requirement from Anniversary Date, entry dates on 4/1 amd 10/1 Date of Hire - 9/6/2008 Date of term - 5/16/12 I would think he has 3 years of service? But I am not sure. Only 2 of the years he worked did he have over 1,000 but hours have nothing to do with his vesting. Correct?

Do I need to include the plan characteristic Code 3B to indicate that the plan covers self employed. The plan covers "not" just self-employed but others as well. Is it correct to include this code on the 5500. Thanks

Thanks Andy, I knew it said it somewhere on the form.... but for the life of me I could not see it. Too many years of filing forms.. The body of the form instructs whether or not the form should be signed. The problems with the automatic extension provided by federal income tax filing are (1) you will spend more time communicating this requirement and then verifying that a tax extension has been filed than you will submitting a 5558 and (2) the timing may be confusing when the plan and fiscal years differ. If you have software, it will likely take you under a minute to prepare and print out the 5558. Since you will likely be filing many, that's just one mailing.

I have always asked my clients to sign the "Application for Extension of Time to File". Is a signature really necessary? Is there an automatic extension if the "tax filing" has been extended? If so, do we still need to file a Form 5558. Simple questions I'm sure, but I have never had a client not want to sign

We have carefully considered resignation...... And, unfortunately, they did file at least in 2002 & 2003

We just aquired a plan that has not filed a Form 5500 since 2003. They tell me they have never received a letter from the IRS regarding a delinquent filing. Is there anyway I can find out if the IRS did mail these notices or not? Also, if a notice was received, does that mean we can no longer file under the Delinquent Filer program? I am not even sure that testing has been done on the plan since 2005. Any advice as to where to even start? Or perhaps should we just resign before we begin?

A plan makes its 2009 Profit Sharing contribution in August 0f 2010. For purposes of the 415 test, is the 2009 Contribution counted in the 2010 testing? If so, then the 2010 contribution which will be made in 2011 would it be counted in 2011 415 Testing. The contribution is based on current year compensation, just not paid until the following year. I'm sure I should know this, but I don't and I am also not sure how to set it up in Relius to test unless I just don't post the contribution Until the year it is actually being made.

I have been asked to complete a Form 5500 for both a Profit Sharing Plan for a Collectively Bargained Group that has a total of 53 participants at the beginning of the year and 54 participants at the end and a 401(k) Plan that has 14 Participants (BOY & EOY). Both filings are for the same company. In 2009, the firm that completed the filings for this company completed a regular Form 5500 with Schedule's A & I. Is there something I am missing or would they have been eligible to file as a small plan in 2009? Since they filed a regular 5500 in 2009, do I have to stick with the Form 5500 and the schedules. Thanks

I'm sorry, why would I need legal help. I have a new plan effective 1/1/2010. It is a profit sharing plan with an employer discretionary contribution only, no employee contribution provisions. The company was unable to make a contribution to the plan for 2010 as they had hoped. I realize there is no exception to filing a 5500, but I did not think there were legal issue I needed to be worried about. Help me understand please.

We have a client who established a profit sharing plan effective in 2010 but never made any contributions to it so there are no assets. Should we still prepare a 5500?

Its late in the day so forgive me for being "dense". Are you telling me that we need to correct this under EPCRS calculating and removing gains as well. And yes, I guess the employer did underpay the employee. I am not sure what year the underpayment for 2010 would be taxable. Sorry to be so dense.

A plan we have uses "self-service" with their payroll company to allow participants to manage their deferral percentage elections,. One of the participants requested a suspension of his deferrals on 11/30/2010 and he just realized that they did not stop. Is the employer obligated to refund these deferrals to the particpant. A confirm is not issued to the particpant when they do this. It would seem to me that that it is to late to refund 2010 but what about the 2011?

We have a plan that allows immediate entry into the plan for making deferrals. However, there is a one year wait to receive the match. They have two participants who entered the plan and begin making deferrals on 6/1/2010. The employer also made matching contributions to the individuals immediately rather than waiting until they were eligible. How should this be corrected? The employer wants to stop making matching contributions for the two individuals until such time as they are eligible, leave the money in the participant's match account using it to offset the future match. My feeling is that the match should be forfeited? What is the correct way to handle this?

I have calculated the gains on the late deposits for one of our clients. The total earnings that they need to remit excise tax on is approx. $1300.00. On the Form 5330, do we need to report each individual late remittance separately? Some of the gains calculations are so small on an individual principal amount ($1.00 or less) that was late that no tax is actually due on it. Is it permitted to report the late payments as a monthly total rather than each individual amount on its loss date?

I did not do the document, but the Section that refers to Employer's electon to match Catch-up Contributions is not checked

Sorry guys, I am even more confused than ever. Catch-up contributions are not eligible for matching contributions. I recharacterized his deferrals as catchup so that the ADP would pass which then resulted in the ACP Correction refund amount. He is 100% vested in the match money. Help me understand if you have time...

The excess match is being transferred to the forfeiture account because the document states: "In the event the Plan fails the ADP Test and Excess Contributions are returned to Highly Compensated Employees, any corresponding Matching Contributions that are not returned because of a simultaneous failure of the ACP Test (Excess Aggregate Contributions) shall be forfeited, even if vested, from the Matching Contribution Account of the affected Highly Compensated Employees. Unless otherwise elected in the Adoption Agreement, such forfeited amounts shall be first used to reduce Employer Contributions that otherwise would be made for the Plan Year." Excess Contributions were no returned to the employee because he is over 59 1/2 and it could be recharacterized as "catch-up" but the ACP test still had to be corrected so I assumed base on the above statement, the money could be transferred to the forfeiture account. I understand that earnings have to be transferred as well based on your answer, but am I doing something incorrect by transferring the money to the forfeiture account to be used to offset future match. Thanks Is it a) because the participant is not 100% vested in the match, or b) because you have "orphan match"? Either way, yes, you would adjust it for gains. I just wanted to make sure you were really supposed to forfeit it.

We have a plan that failed the ADP/ACP Test. The deferral correction amount was recalculated as Catch-up. But I still have to refund the excess match money that was deposited for this participant to correct the test. The match refund is going to be transferred to the Plan Forfeiture account to be used to offset future employer matching contributions. My questions is do I need to calculate the gains associated with the match refund amount and transfer that to the forfeiture account? Thanks

Thanks Tom. The company will be glad to hear that. I was thinking of the 120 rule. I just didn't realize that once you drop below 100 then you don't have to do a full blow 5500. Prime example of "Never too old to learn". especially in Pension Land..

I use Relius Govt forms and plan characteristic codes are one of items that carries forward from one year to another. But when I looked at the plan codes in the instructions for the Form 5500SF, they do not seem to be the same as they were last year. I know I am "overwhelmed" but I don't remember seeing this anywhere. And, if they did change looks like Relius would have carried them forward correctly. Example 3E indicated a prototype plan in 2008, but in 2009 the insturctions say it is a "one person plan that satisfies coverage". I assume the plans my clients have filed and have been received by the DOL that have the incorrect codes will have to be amended at some point and time.

I am really feeling a little sick. Did the plan characteristic codes change from 2008 to 2009. I use Relius Govt forms and this is one of items that carries forward from one year to another. But when I looked at the plan codes in the instructions for the Form 5500SF, they do not seem to be the same as they were last year. I know I am "overwhelmed" but I don't remember seeing this anywhere. And, if they did change looks like Relius would have carried them forward correctly. Example 3E indicated a prototype plan in 2008, but in 2009 the insturctions say it is a "one person plan that satisfies coverage". I assume the plans my clients have filed and have been received by the DOL that have the incorrect codes will have to be amended at some point and time.

I have about 20 extensions I need to file for different clients. We usually file these via regular mail with return receipt requested. If we do this individually, it will cost a fortune. Do you think it would be alright to file them together using one of the overnight services?

Have you had plans go thru and be accepted by EFAST with only one signer?. Should there not be only one name listed on the bottom of the form? Thanks

I thought I read the answer to this somewhere, but now cannot find it. If the plan administrator and the plan sponsor are one in the same, do we need to electronically sign both lines with the IREG credentials?