BFlash Posted January 31, 2018 Posted January 31, 2018 We have a takeover DB plan for 2017 & we're working on 2017 now . . . Client made a $220K contribution in Sept, 2017 for 2016 & $20K was needed for minimum funding purposes for 2016. Prior actuary prepared SB detailing this contribution. While balancing the trust, we discover that the client contributed shares of stock to the plan & not cash. Now what? We're got a PT that needs to be fixed (by selling the shares that were originally contributed in Sept. 2017) & excise taxes to be paid for 2017 & 2018. Does the client still receive the 2016 deduction? Does our actuary need to amend the 2016 SB? Any other issues that I'm missing? Thanks!
Loves401(k) Posted January 31, 2018 Posted January 31, 2018 Are the stocks that were contributed publicly traded? Could this be an error in the way it was recorded rather than a Prohibited Transaction?
Calavera Posted January 31, 2018 Posted January 31, 2018 Client definitely get deduction for 2016. And yes it is a PT. However, there are different opinions on this board regarding whether this particular PT needs to be corrected, and regarding the excise taxes. See prior discussions regarding this matter. http://benefitslink.com/boards/index.php?showtopic=38796http://benefitslink.com/boards/index.php?showtopic=36434http://benefitslink.com/boards/index.php?showtopic=28518http://benefitslink.com/boards/index.php?showtopic=26763http://benefitslink.com/boards/index.php?showtopic=19745http://benefitslink.com/boards/index.php?showtopic=11880
BFlash Posted February 1, 2018 Author Posted February 1, 2018 Thanks for the help - I can move forward with 2017 now . . .
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