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Posted

We are a TPA in the process of taking over a Cash Balance and 401k PSP from another TPA. We have noticed that no 5500-SF or 5500 has been filed for 2008, 2009 and 2010 for the Cash Balance Plan. Instead, the TPA has been filing the Schedule SB with the 5500-SF for the 401k Plan!!

We have already discussed going into the DFVCP with the client for this egregious error.

I just wanted to cover all my bases and put the question out there (in case I am missing something) to you all to see if under ANY circumstance the way the current TPA is doing this is ok? The current TPA says this is how they do all their Cash Balance Plans which worries me a lot, sounds like they have a major problem on their hands (as do their clients).

Posted

Can I have the name of this TPA, and their client list?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

  • 2 weeks later...
Posted

This is how they file the Schedule Sb for all of the Cash Balance Plans they administer. I'm not sure how many that is. But I am at a loss for words. The TPA firm is insisting there is no comliance issue with this, when clearly they are in violation by not filing a Form 5500 for the Cash Balance Plan. I'm not sure how much more clear we can be in telling them a form 5500 is required for each plan of the employer.

Posted

Amazing!

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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