Search the Community

I have a small Profit Sharing Plan that wants to terminate ASAP. I wanted to confirm we could accomplish this with a 15 day notice to participants so I checked the IRS website and found the below information under "Plan Terminations - Required Notices". Did we loose the 15-day notice and/or 30-day notice of Termination for small plans? Retirement Topics - Notices | Internal Revenue Service (irs.gov)

The central issue is whether or not a family member can be excluded entirely from the plan (0 deferral, 0 SH 0 PS)?

We have a new client for 2022 that has a profit sharing plan. There have been no contributions to the plan since 2017 (there will be no future contributions) and in the adoption agreement we prepared for them effective 1/1/2022 we indicated that the plan was frozen on 1/1/2022. Their previous TPA never amended their adoption agreement to show it as frozen. We aren't terminating the plan because there are several investments (real estate, private equity) that are not liquid and for some reason the owner doesn't want to find an IRA custodian to deal with it. When the plan was established in 2013 there were two 50/50 partners and no employees. They filed Form 5500-EZ's from 2013 through 2017. They hired an employee mid-2017 who became eligible for the plan on 7/1/2018 but has never received a contribution so has no account balance. They have filed Form 5500 (Schedule I) from 2018 - 2021. Partner A bought-out Partner B mid-2021 and Partner B's profit sharing plan account balance was rolled-over to an IRA on 12/31/2021. Now we have a single-member LLC as a plan sponsor for 2022 with one account balance and one employee who does not have an account balance and never will. Can we file Form 5500-EZ for 2022 forward or are we stuck with Form 5500? I am questioning whether or not the employee needs to be considered a participant because while the plan was not amended to be frozen, it has been frozen for all intents and purposes since 12/31/2017 which was before she became eligible.

Hello! I have two queries, hope you guys can help me out. 1. If a participant has only deferral in plan, does he/she eligible for gateway minimum (No SHNE or TH minimum) ? 2. Which contribution will satisfy or cover gateway minimum (plan has no SHNE) Employer match/ SH Match? Thanks!

PSP terminated April 2018. PSP assets were directly rolled over to a Individual 401k created April 2018. I401k Summary Plan Description states: "Can I withdraw money from the Plan while I am still employed? You will be able to take certain distributions from the Plan while you are still working for your Employer, as indicated below. In-Service Distributions You may request a distribution of your rollover and transfer contributions at any time." Can I do a direct rollover of a portion of the assets in the I401k to my SEP IRA? Will this trigger the 10% tax penalty? Anything I should be aware of? Thanks for your help.