JustMe Posted June 3, 2020 Posted June 3, 2020 We recently discovered that our client/owner didn't have any eligible plan compensation but has funded the maximum 415 limit to both DB and DC plans for years. Thoughts on how to correct aside from basically removing all contributions and amending the company's tax returns?
Larry Starr Posted June 4, 2020 Posted June 4, 2020 7 hours ago, JustMe said: We recently discovered that our client/owner didn't have any eligible plan compensation but has funded the maximum 415 limit to both DB and DC plans for years. Thoughts on how to correct aside from basically removing all contributions and amending the company's tax returns? The magnitude of the error requires that the client engage competent ERISA counsel. YOU don't have privilege and the client needs that. The attorney can hire you to do work if that is desired, and then your work is the attorney's work product and is not subject to disclosure. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
Luke Bailey Posted June 4, 2020 Posted June 4, 2020 Note that if the owner NEVER had any eligible compensation (so that the plan was NEVER qualified and the owner NEVER had any account or benefit (under the plan's terms), you may be better off. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now