Renee H

I have a 1 participant 401k/PS (sole prop.) plan that received 100% of excess assets from a terminated DB plan in 2017. Plan was amended as a QRP. The QRP has been funding the ERPS contribution beginning in 2017. The owner/TEE opted to invest these assets as opposed to keeping them in a non-interest bearing account. Year 7 will be 2024 and based on the MV as of today, it looks like there will still be assets remaining in the QRP. Can someone advise me on what the excise tax will be for any remaining assets that revert back to the ER. Is there anything else I should be advising my client on with respect to this situation? Thank you.

I am terminating a profit sharing due to the sale of the company. This is not a 401k plan and they do not wish to apply to IRS for DL. I was taught to give a 15 day notice to plan participants but can't find the citation. Can someone please provide me with some guidance in this matter?

Thank you everyone.

Thank you. They will return the money to the suspense account. The amount to $5630. The interest rate on this account is .01% or .56 per year. Are you saying a 5330 must be filed to report lost earnings of .49? Am I misunderstanding something here?

It was a cash account.

One of my clients inadvertently moved money from the suspense account to the Employer operating account instead of re-allocating to participants in 2021. Are they now subject to the excise tax or can this be self-corrected by moving the funds back to the Employee profit sharing accounts? If they must pay the excise tax, what is the percentage of the tax?

Thank you. That's good to know!

I have a take-over 401k plan and discovered form 8955-SSA was not filed for 1 participant who terminated in 2013. She turned 70.5 in 2019 and has not taken any RMDs. All accounts are earmarked and this participant has had full disclosure and control regarding the investment of her benefits. Should I file the 8955-SSA for 2020? The record-keeper missed the RMD deadline. I would appreciate some advice on how to fix these issues.

Thank you for your responses. I was thinking along the same lines of not charging for the restatement since it is not the Plan Sponsors fault the current document is not available.

We are using Datair for our Cycle 3 plan documents. They advised us they should become available by end of March but I'm not sure I trust that timeline. What do I do with new 401k plans effective 1-1-21? Draft using the old document, then restate next year? Seems unfair for the company to spend the extra money on 2 documents a year apart. Is there any way around this? My answer may lie with the investment firm handling the investments but I am wondering what others are doing in this situation?