Has anyone used the penalty relief program ($500 flat fee)? Experience? We had someone use it, filed/paid in January, and they've received two letters so far saying "we need more time" implying they are researching it. Seems weird...or maybe not, I can see how hard it might be to cash a check and check a box.

[Advert.]

With On-Site Education from the International Foundation, your staff can receive high-quality education in a customized, one-of-a-kind learning experience. Avoid the cost and inconvenience of travel, and let us bring the education to you! Learn More.

Client set up a Safe harbor 401 (k) Plan effective 3/1/2019. They initially wanted a 3 month eligibility with entry dates monthly-following. Now we are in June, and they are wanting to amend their document to say only 60 days wait - (to agree with the wait for health benefits with their company). No one so far has been made to wait 3 months to start deferring. Thoughts?? Any IRS problems that they could run into?

Q: Do the final regs around terminating a 403(b), in which the sponsoring employer must "Generally, stop contributions...to any other 403(b) plan during the period that begins on the termination date and ends 12 months after all benefits have been distributed from the terminated plan" apply to an employer terminating its relationship with a 403(b)(9) church plan?

I have 2 plans that are part of the same controlled group. Plan A: No age/service, daily entry Plan B: 21/1 YOS/Semi Entry When determining the groups for coverage, when doing plan A ratio, we count everyone since there is no age/service. When doing Plan B, do we only count those that have 1 YOS/21/semi for determining the benefiting group? I am trying to figure out who is excludable (for age/service) to those that are non-excludable not benefiting.

A participant was covered under an EACA. He was int he plan a few years and his auto-deferral went from 3 to 4 to 5%. Then he left. When he comes back, I know he is automatically eligible for the plan and enters immediately. But at what rate? The initial 3%? Or his former 5%

With the newly released Summary Annual Report model notice updates, were any changes actually made to the wording from the prior version?

So, suppose you have entity "A" which sponsors a Section 125 Plan. Entity "A" is now changing their name, and will become entity "B." Same employees, but new name, EIN, and management roles. Can the new entity simply adopt the existing plan assets and liabilities, via a resolution and amendment, similar to what happens in a 401(k) plan, or are there different requirements for this situation for the 125 plan? I have no details whatsoever, other than that they do have an FSA - don't know if there are other types of benefits as well. Assuming they have premiums paid through this plan, do you have any experience with whether the insurance carriers just allow the policies to "transfer" to the new entity, or will they have to re-apply, etc.?