metsfan026

What about if the loan has been deemed in default, but the balance is still being shown as an asset of the Plan?

Thanks everyone, that was exactly what I was thinking. Unfortunately, currently I only have the adoption agreement but not the document that the agreement created. I'm hoping to get my hands on that, but I just wanted to confirm

Unfortunately the participant recently passed away, so we need to make a decision on who the money is going to go to.

Just took over a case where they didn't have any beneficiary forms on file. There is a participant who just recently passed away. He has an ex-wife, who he divorced before the Plan ever started so I don't believe she's a factor here. He has one biological child and step-children. Would his entire balance then go to his lone biological child? That's what I'm thinking, I just wanted to confirm. Thanks in advance!

General question regarding RMD. If a participant has an outstanding loan, is the outstanding balance of the loan included in the 12/31 balance for the calculation? In other words: (Investments + Outstanding Loans) / RMD Factor I believe that's the case, I just wanted to confirm. Thanks in advance!

This is exactly what I thought. None of the non-Key EE deferred and the Key maxed out ($26k). Thanks for confirming!

Got into a debate with a colleague and I'm 99% sure I'm correct but wanted to confirm (sorry if this is a dumb question, just want to make sure!) Plan is Top Heavy for 2020. The only contributions made into the Plan in '20 was the one Key employee making a 401(k) contribution (no other Employer money has been contributed). Based on the 401(k) being made, they are therefore required to make the 3% Top Heavy to all non-Key employees, correct?

Taking over a case that has two Plans, a Profit Sharing and a fully funded Defined Benefit Plan. Is there any issue with terminating the DB Plan, rolling it into an IRA and then opening a new Cash Balance Plan? Thanks in advance!

Thanks!

My question is how far back do people normally go to amend forms? Taking over a case that had a mistake in the amount of loan repayments were made back in '14, so the loan balance was off (and subsequently was off every year since). The client has supplied copies of the checks, etc., so I know the mistake is accurate. Is this the type of situation where you would amend every form since 2014? I have all of the information to do it, just wanted to make sure it was necessary. Thanks in advance everyone!

Got it. So it's 4 years or less, between 5 and 19 years and then 20+ years

Good morning everyone! I just wanted to make sure we are using the correct segment rate for the calculation of the Normal Cost. The calculation should be: Contribution Credit x The Assumed Interest Rate (to the power of the number of years until retirement) -------------------------------------------------------------------------------------------------------- Segment Rate (to the power of the number of years until retirement) For the segment rate being used, it should be: First segment rate: 0-5 years from retirement Second segment rate: 6-20 years from retirement Third segment rate: More than 20 years from retirement Thanks in advance for confirming

I know, and they elected Calendar Year data election to determine HCE. Therefore, we'll move forward with 5 HCE and just the 1 NHCE. Thanks!

I know we can do just the top 20% as HCE, but is it an issue going the other way and testing 5 as HCE and only 1 as NHCE

Taking over a case where there are 6 participants, but technically 5 of them are HCE (2 partners, and 3 of the employees who have no ownership stake). Is there an issue from a testing standpoint to use all 5 as HCE or should we test them with just the 2 partners considered HCE? (Only reason I'm asking is because it does make a difference in regards to passing or failing) Thanks in advance!

I just want to make sure I'm reading all of this correctly. Under the Hurricane Ida Relief it says: The IRS also gives affected taxpayers until January 3, 2022 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after September 1, 2021, and before January 3, 2022, are postponed through January 3, 2022. As part of Treas. Reg. § 301.7508A-1(c)(1) it says: (c) Acts for which a period may be disregarded—(1) Acts performed by taxpayers. Paragraph (b) of this section applies to the following acts performed by affected taxpayers (as defined in paragraph (d)(1) of this section)— (iii) Making contributions to a qualified retirement plan (within the meaning of section 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 404(m)(2); making distributions under section 408(d)(4); recharacterizing contributions under section 408A(d)(6); or making a rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3); Paragraph (b) discusses the delayed deadline. So does this mean contributions due by 9/15 are delayed to January 3? Thanks in advance everyone!

I had the same question. I see that the extension applies to the Form 5500, but does it also apply to the contribution funding?

I've always filed the Form 5500 on an accrual basis, but we've been taking over quite a few Plans that have been filing the Form 5500 on a cash basis. Now I'm curious if there's a benefit to utilizing either method, or does it not really matter? In these cases, would it be best to keep moving forward on a cash basis for consistency or would moving to an accrual basis be alright? Thanks in advance (and as always, sorry for all the questions!)

They are doing 5% into the Profit Sharing Plan, so we are 100% covered there. What's then the minimum for the Cash Balance?

Getting questioned on the setup, so I wanted to make sure there wasn't an issue. Client wants to set it up as 500 for a Year ofAccrual Service (so they are eligible to receive a contribution) but 1,000 hours for a Year of Vesting Service. Cash Balance Plan. Entry is going to be 21 with 3 months of service. Thanks in advance everyone!

Great, thanks!!!

Thanks everyone!! The client asked if the VAT needs to appear on the W2 and how they should be deducted? Thanks in advance!

Good morning everyone! I'm getting a question from someone regarding getting a Plan it's own TIN. I know for the EIN, generally we use the employers to file the Form 5500 with the IRS. Is there a need to get each plan it's own individual TIN, however? And if there are two plans (i.e. a 401(k) and a Cash Balance), would each Plan need it's own individual TIN? Thanks in advance for your help! I believe they are looking for a TIN in order to open the pooled account for the Profit Sharing and Cash Balance Plans (not a 401(k)).

What I thought, just wanted to confirm. Thanks!

This one I'm pretty sure is easy, but I just wanted to make 100% sure since someone asked me. Can a sole prop, schedule-C have a solo-k AND cash balance plan?