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I am new to the issue of Cross Testing, but started my career in Pensions (Entry Age Normal..anyone?) and am now using this concept for my own SEP Plan. Can anypne point me to the latest Excel in the public domain, I can use to sort out the EBAR for a situation where there is a 401K and a SEP? Thanks in advance Ken.phillips@benefitscape.com

Hello. In April of this year(2019), I terminated my [single-owner] S-corp and the Solo 401k I had for it(filing final 5500ez, etc.). I rolled the Solo 401k funds into an existing IRA so I could terminate the 401k plan. I then moved from NY to FL and opened a new business, operating this time as a sole proprietorship. I contributed to the Solo 401k in Q1 before dissolving that business, but only $31.5k($19k employee deferral, $12.5k employer contribution)-- short of my limits for solo 401k or an SEP IRA otherwise. I planned on opening an SEP IRA starting in 2020, but now I'm finding I'd like to max deductions for 2019 more than I expected(I had more taxable events than planned), and was wondering if I could open an SEP IRA for the Sole Prop for the 2019 tax year? Vanguard says their interpretation is that I can't have two plans(401k and SEP IRA) in the same year, due to the same ownership/control of the two companies. When asked for them to point me to anything official to back up that position, they just vaguely pointed me to pub560-- but I can't find anything about multiple plans there, other than 5305-SEP requirements which shouldn't apply(as the 401k was terminated, and the 5305-SEP instructions specify 'presently maintain'; plus, that's just for using the form, not SEP IRA qualification itself). Is there anyone here that can answer this for me, pointing to some authoritative source? Thanks.

I have a client with a SEP IRA plan that is maintained on a calendar year basis, however, my client has a 9/30 fiscal year end. How do I calculate the client's contribution deduction on his tax return? Do I deduct a percentage of his annual contributions (e.g. 75% of 2018 contributions)? Or do I simply deduct his annual 2018 contributions, regardless of the difference in fiscal year and SEP plan year? Thanks, Justin

Hello, My wife and I own a business with no other employees. We each have a SEP IRA set up and employer contributions for 2017 have been made. I now realize I should have set up solo 401 K accounts. It looks like I can still set up a solo 401k account and make the $18,000 contribution for 2017 if my SEP is not a 5305. I set up the SEP IRA's at Vanguard and don't remember filling out a 5305 form and they have no record. How would I know if I have a 5305 and if I do is it possible to change that? Thank you.

Per the 408(k) IRS rules, less restrictive rules may be established to include employees and owners in this retirement plan (see below). Assuming that I start the 408(k) for my company on January 1st, 2017, and we just started a new company on the same date, can one of the less restrictive eligibility requirements be the following?: Employees do not have to fulfill the requirement of the 3 out of 5 year working at the company and may qualify for the 408(k) regardless of the number of years they have worked for the company if they are part of the executive staff. The executive staff includes the following positions: CEO, CTO, CFO, President, Vice President, Director. All other employees qualify for the 408(k) once they meet the 3 out of 5 year requirement. This seems like a less restrictive requirement that we can set up and allows us to fund the SEP IRA's for owners and/or executive staff as an incentive to attract people at those positions, while also not mandating that we fund everyone's SEP IRA immediately. 4.72.17.4 (07-06-2016) Coverage and Participation Requirements All eligible employees must be allowed to participate. An eligible employee is an employee who: Is at least 21 years old. See IRC 408(k)(2)(A). Has performed service for the employer in at least three of the immediately preceding five years. See IRC 408(k)(2)(B). Has received at least $450 in compensation (as adjusted under IRC 408(k)(8)) from the employer for the current year. See IRC 408(k)(2)(C). Also see IRM 4.72.17.13 for the SEP minimum compensation limits. An employer may establish less restrictive eligibility requirements than these.

I'm retired. After retiring, I earned income that the IRS says must be treated as self employment income. I completed Schedule SE and determined my max contribution every year, always less than $1,000. I deposited the money into an old IRA. When I passed age 701/2 I kept depositing the annual SEP contribution, but I did start my RMDs for the IRA. The IRA Holder recently notified me of the excess contributions for 2010, 2011, 2012, and 2013. I have pulled out the contributions plus their associated earnings. What IRS form do I now use to report this action and pay the penalties. Do I submit a 1040X for each year? Are the associated earnings reported on that 1040X or in my 1040 for 2014? How do I use the Form 5329, since the penalties repeat each year until the excess contributions are withdrawn?