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Found 4 results

  1. I am asking this in a half rhetorical manner. Client had been a single employer for 5500 filing and filed under 001. Then employer became a related employer due to an acquisition and joined parent's plan as adopting employer. Initial 001 Form 5500 had a final filing when the assets merged into the parent's plan. A few years later and due to ownership change, they are no longer related so the current plan is a MEP and the Client is spinning out their portion of the MEP into a stand alone plan (June 1, 2023). My experience has been that the effective date of the newly established spin-off plan should be June 1, 2023. The Client would use 002 since 001 had been previously used. Since this is a spin-off, there are protected benefits and no distributable events (that is not the issue). The service provider is insisting that the effective date be 1/1/2018 (effective date of the prior parent's plan). My concern is that once filed, the EBSA is going to ask about all of the missing prior 5500 filings, which could be avoided with a new effective date and I also believe that the 5500 must be marked as "First Year Filing". Any experience out there with using a prior effective date and what notices get generated? I vote for the 2023 effective date and 002 for the plan number. Thanks!
  2. Hi all! We're looking at taking over a plan that is a spinoff from a MEP. The MEP allowed for Loans, but the employer does not intend to include loan provisions in the new plan. Would this be able to be treated like a plan termination offset situation for the few participants who have loans, allowing them to begin rolling funds into an IRA to replace the loan offset? Or is there some anti-cutback rule that I am not thinking of that would require the employer to allow the participants with loans to continue their payroll deductions for loan repayments into their accounts in the plan until all are repaid? Thanks!
  3. Short well maybe long story. Company A had a plan in which they terminated less than 12 months ago and became an adopting ER of Company B (option of merger was not address w/prior service provider). Company B was recently acquired by Company C (unrelated) (believe a stock sale, but not sure). Company A is no longer part of the control group and would now like to establish a new plan. I do not know for sure if Company B is terminating their plan, let's say they are for this example. Since Company A had terminated a plan less than 12 months ago, they cannot establish a new plan without violating the Successor Plan Rules. So, is their only option a Spin-off from Company B's plan to a new plan? In order not to violate the Successor Plan Rules. What if Company A received advice that they can establish a new plan and the IRS comes in after seeing their Form 5500 and says they did violate the Successor Plan Rules; what then? Is the only option Audit Cap to plead their case and correct however the IRS says in order to keep the qualified tax status of the plan? What if Company A decides to do a Spin-off from Company B's plan, but since time has passed on their decision making and some employees of Company A were already paid out by the current service provider as part of the plan term? Can a Spin-off still be done? Thank you!
  4. Hi, all: We have a plan that spun off from a MEP and 2013 is their first year to file. My colleague asked me if there is any data she needs to obtain from the MEP that could affect our 2013 work for it. I could not answer her with certainty, so I thought I'd cast a net out for input. Do we need Top Heavy data from the MEP or no? Any other think-outside-the-box-holy-cow-I-wish-I-knew-that things to keep in mind? It appears the current adoption agreement that was drafted retained the MEP's efective date and lists the current restatement date and Plan No. 001 One more tid-bit of info, it seems they made no new contributions to the plan for 2013. Advanced thanks for anyone's input!
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