ABeach

We have received 3 letters from plan sponsors in the past week that Form 5500 EZ plans filed their forms late with huge penalties. All three forms were filed on time. Has anyone else had plan sponsors receive these letters? We've asked ASPPA and we haven't received a response yet and our plan sponsors are obviously concerned. We tried to call the IRS and got a message that due to high volume to call back tomorrow. Any advice on how to find out if these were sent out in error to EZ plans? Thank you!

We have a client with unique situation with a payment to an employee. The employee has been out on short-term disability and also collects social security. The insurance company offset his disability benefit by the amount he receives from SS and the company is paying the employee for this offset. The money is not for wages nor has anything to do with work production. The Plan sponsor has a signed agreement from the employee that the company will pay the taxes on this payment but will not pay the employee 401k contribution. Will this suffice when the audit determines his payments were not all subject to the 401k deferral?

We have a plan with after tax contributions and the only participants making after tax contributions are HCEs. The employer makes a basic safe harbor match. The question has come up as to whether or not safe harbor match can be used in the ACP testing in order to pass/help the ACP test that would otherwise fail and require refunds. I can't find anything in the Regs addressing this so I'm assuming that this in not allowable. Has anyone else run into this question or can point me to I may be overlooking this being address in the Regs?