metsfan026

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?

I have a one man 401(k) Plan where they are looking to put in a Cash Balance Plan as well. If the owner makes $165k, the maximim Profit Sharing contribution would be 6%, correct? So they could do $19,500 in 401(k) + 6% of Comp + $108k into Cash Balance (he's 42-years old)? Is there anyway to get the contribution to be more than 6% into PS?

Right now it bugs me too!!

Sorry for all the questions lately! For a Plan that does their Safe Harbor Match on a payroll-by-payroll basis, are they required to do a true-up at the end of the Plan Year for those participants who started their contribution mid-year (or for those who maxed out prior to year-end)? Or can they put in the document that they will not do a year-end true-up?

OK, thanks! But for the Profit Sharing is it alright to have the two different entry dates?

I have a client that has a main entity, which owns various LLC. They want to setup a plan, but have different Plan entry requirements: Main Entity - Entry after 1 year of service (with a vesting schedule) Sunsidiary LLC - Entry after 2 years of service (knowing that anyone who qualifies would become immediately 100% vested) There are numerous subsidiary LLC, but most of the employees are temporary so they are looking to keep them out of the Plan legally. I believe setting it up with two different sets of entry requirements is alright, but I just wanted to confirm. Thanks in advance!

I have a client that wants to setup a successor Trustee, just in case. It doesn't appear that there's an option to put this into our Plan Document, however. Is there something else that I can have signed stating who the successor Trustee is? Thanks in advance!

OK, great. So if the document specifies a different amount to the HCE that is permitted?

I know that the Safe Harbor isn't mandatory for the Highly Compensated Employees, but could the client make a lesser match for those people (say 1% to all HCE and the typical 100% of the first 3% + 50% of the next 2% to the Non-Highly)? Basically the client doesn't have the cashflow to accomodate the contribution for all of the highly, but they want to make something to them. It's not an issue we've run into before so I wanted to be sure. Thanks!

We have a new client who is tax-exempt as a 501(c)(13) company. They are looking to establish a 403(b) Plan, but based on what I've read it doesn't look like they'd be eligible to establish one. Would they be eligible, or would they have to instead go with a 401(k)? Thanks in advance!