Message Boards Digest

February 12, 2018

Here are the most recently added topics on the BenefitsLink Message Boards:

Author's photo

thepensionmaven created a topic in Plan Terminations

Deadline for Wind-Up of PS Plan After Sale of Sponsor?

We currently administer a profit sharing plan. The employer may be selling the business. The purchaser would be buying the assets of the company and changing the name of the company. I know you can't have a plan without a sponsor, but is there a specific time limit (excluding the IRS 12 month rule) within which to distribute, rollover, etc. after the company is no longer in business?
Number of replies posted  2 replies      Number of times viewed  68 views      Add Reply
Author's photo

TaxLawyer1978 created a topic in Retirement Plans in General

How to Report Funds Paid by Employer to Settle Claim for Benefits?

A company incorrectly made contributions to a defined contribution plan on behalf of an employee for over 20 years. The employee received monthly statement and was told a year prior to retirement she had excess of $120K in benefits in the account. Error was discovered and funds forfeited, but the company settled with her on the side to pay her the amount of the benefit. Question: what kind of W-2 compensation is this reportable as? Is this wages that go in box 1? It was agreed that 2/3 of the settlement amount would be W-2 and 1/3 reported on a 1099-MISC. Thanks in advance.
Number of replies posted  7 replies      Number of times viewed  56 views      Add Reply
Author's photo

401_noob created a topic in Plan Document Amendments

Plan Amendment to use Forfeitures to Fund SH Contributions

Has anyone seen any successful document amendments for a plan to begin using forfeitures to fund safe harbor contributions? I was hoping that FIS Relius would have released their good faith amendments by now, I understand they haven't.
Number of replies posted  3 replies      Number of times viewed  70 views      Add Reply
Author's photo

ldr created a topic in Retirement Plans in General

Count Compensation from Each Employer/Sponsor in a Controlled Group?

We have a client who owns two companies and both have employees including himself. One is a corporation; the other is a LLC. He has W-2 wages of about $190,000 from the corporation and over a million from the LLC. Both companies are adopting employers to the same retirement plan and all employees are covered for both entities. Question: In calculating the maximum benefit he can have for 2017, are we allowed to use both his W-2 wages plus enough K-1 income to get him up to the maximum we can take into account for the year of $270,000?
Number of replies posted  6 replies      Number of times viewed  51 views      Add Reply
Author's photo

Raj created a topic in 401(k) Plans

First Time 5500EZ for a 15-Year-Old Plan

I own a one-person corporation that opened a solo 401(k) plan in 2003 at Fidelity. The value of the investments has crossed the $250k threshold, so I plan to filing 5500EZ by March 15 (i.e., when I file company taxes). How far back could the IRS audit the plan? How would they know who much actually I deposited each year, considering stock market changes and the fact that I lost money during a few years? It should have been $250K in 13 years considering my deposit has been 20k each year. Is that normal for solo accounts?
Number of replies posted  3 replies      Number of times viewed  37 views      Add Reply
Author's photo

Towanda created a topic in Cross-Tested Plans

Gateway Minimum in a Top Heavy Plan; 'Compensation' Is Comp While a Participant

I have a Top Heavy Safe Harbor/Cross Tested Plan. Compensation for plan purposes is compensation received while a participant. Obviously the Top Heavy Minimum must use the entire year's compensation. Must the Gateway be based on the entire year's compensation?
Number of replies posted  2 replies      Number of times viewed  32 views      Add Reply, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright 2018, Inc. All materials contained in this mailing are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

Links to web sites other than and are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe | Privacy Policy