Scenario: SIMPLE IRA went "bad" (disqualified) several years ago due to failure to offer the SIMPLE to the employees of a related company. Cost to make corrective contributions under EPCRS for the employees of the related company would be exorbitantly expensive so the only viable option is to treat the contributions as not having been made to a "qualified" SIMPLE IRA. There's no official guidance on how to handle this so our thought is: [1] For the years still open under the statute of limitations, have the employer amend the W-2s to add the deferrals and the match to Box 1 wages and the match to Box 3&5 SS and Medicare wages. There should be no income tax impact to the employer but will owe SS & Medicare tax on the match amounts (employer will also pay employee share). [2] At the participant level treat additional income amounts as contributions to a traditional IRA. Depending on the employees situation the contributions may be deductible, non-deductible or excess. Employer will cover the costs associated with amending the employees individual tax returns and paying additional taxes but due to the small amounts involved it's believed that the vast majority will be deductible so the net tax impact to the employees will be negligible. Anything we're missing?

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Company has three owners, A (the father), and B & C (the sons). Um, had three owners -- A passed away in 2017 (while in RMD status, but I don't think it matters here). With advice from their financial adviser, B&C chose to keep their portion of their father's money in the plan, so we created beneficiary accounts for them in the plan alongside their regular accounts. How should we be treating these beneficiary accounts for the purposes of top heavy calculations? I'd think we count them in both numerator and denominator for 2018, but what about beyond?

I was asked to review a single participant DB plan for a 68 year old. He has $4,500,000 in the plan. He was planning to retire so a transfer to a PS Plan doesn't really help, even if he works until he drops. After you tell him to get his benefit out of the plan and put his wife on payroll for as much compensation as the CPA will allow, what can you do?

Employer has a 6/30 fiscal year and would like to install a SH 401k for the coming 6/30/2019 Fiscal Year end. In order to be a Safe Harbor plan for this year, it must be in place no later than 3/31. For 2018 the employer provided a SIMPLE plan. The 2018 employer contributions are to be deducted on the 6/30/2019 fiscal year return (as is required by SIMPLE plan rules of deduction -- calendar year ending within the fiscal year provided contributed by due date of Federal income tax return including extensions). Is this employer permitted to establish a new Safe Harbor 401k Plan (including PS provisions) for its FY ending 6/30/2019 with a Plan Effective Date of 7/1/2018, thus full dollar limitations? Or, must it delay the effective date to 1/1/2019 since it had a SIMPLE through 12/31/2018 (pro-rated limitations)?

Individual A has a solo 401k plan for himself. No other employees. He will go to work for a small employer as its employee. This new employer doesn't have a retirement plan. Would the new company be able to "take over" as the plan sponsor of the solo 401k plan, allowing its employees to become participants as well as allowing Individual A to stay in the plan? This is not a merger situation because the company has no plan to begin with.