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Message Boards Digest

June 26, 2019

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

Pammie57 created a topic in Form 5500

Wrong EIN Used for 2017 5500-SF

Took over a client -- whose 5500-SF for 2017 was filed using an incorrect EIN. They have terminated the plan after only two years... (no money) and I assume I need to amend 2017 before I file the FINAL 5500 for 2018 using the correct EIN. I am just wondering if I only fix 2018 and mark as FINAL if that will be confusing to the DOL/IRS. Opinions?
Number of replies posted  5 replies      Number of times viewed  39 views      Add Reply
 
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cg1077 created a topic in Correction of Plan Defects

Forfeitures Used to Fund Earnings on Corrective Distributions

If a plan document allows forfeitures to be used to fund corrective contributions for missed deferrals and associated match, may forfeitures also be used to fund the attributable earnings on those contributions?
Number of replies posted  0 replies      Number of times viewed  12 views      Add Reply

BG5150 created a topic in Retirement Plans in General

Blackout Notice Not Sent to One of the Participants

A plan is transitioning into our platform from another provider. We provided blackout notices to (mostly) everyone. Due to a census snafu, a terminated participant was not included in the notice distribution. Now he is calling the broker saying no one told him his money was moving. The broker is yelling at us saying we're in violation of ERISA. (BTW, we provide 3(16) Administration.) What's the remedy besides sending out the notice and typing up a mea culpa? The violation isn't self-reported, is it? Do you think we are on the hook for $131/day?
Number of replies posted  4 replies      Number of times viewed  61 views      Add Reply

AJC created a topic in SEP, SARSEP and SIMPLE Plans

'Plan Number' of a SIMPLE IRA for Form 14568-D

Completing a Form 14568-D for a VCP submission. My question is, do I leave the box empty that is asking for the plan number? I found no instructions for the Form 14568 Series. (Instructions for the Form 8950 submission say to enter 990 as the plan number.)
Number of replies posted  1 reply      Number of times viewed  18 views      Add Reply

mming created a topic in Operating a TPA or Consulting Firm

Unhappy Client of TPA: Passing Around the Hot Potato

A TPA who is not responsible for providing payroll services sets up a 401k plan and instructs the employer -- more than once, in writing -- that deferrals are taken from/come from participants' paychecks and are tax deductible. The employer, being a thrifty sort, does her payroll herself on Quickbooks and doesn't tell the TPA. A few years down the line, after making deferrals most years, she figures out that they were incorrectly contributed from her corporate account rather than from her paychecks, and that her accountant never deducted them on the business' tax returns. She also paid federal and state income taxes on her unreduced W-2s. Now she's blaming the TPA for assuming that she was using a professional payroll service and not specifically instructing her how to process the deferrals on Quickbooks. The accountant, who probably put her up to this because he must now charge her to make it right, is taking the same stance. The TPA believes the accusations are inappropriate for various reasons, including the belief that it's on her because she decided to do her own payroll without realizing all that's involved. I am curious as to what TPAs think about all of this and what details they usually provide on this matter during the installation process.
Number of replies posted  2 replies      Number of times viewed  45 views      Add Reply

Lori moore created a topic in Retirement Plans in General

Family Members Want to Contribute Their Land to Their Company's 401(k) Plan

S corporation's shareholders are a wife, husband, and daughter. They opened a self-directed 401k with profit sharing for the business. In lieu of making salary deferrals they want to contribute real property (land). The land will come from a partnership which is the husband, wife, husband, and daughter. How can this be done? Then they want the S corporation's matching contribution to be land that the corporation owns. How can they make contributions without a salary deferral? How are they going to put land into three different 401k accounts?
Number of replies posted  2 replies      Number of times viewed  37 views      Add Reply

ConnieStorer created a topic in Retirement Plans in General

When Did Age 25 Change to Age 21 for Minimum Eligibility?

In what year did the eligibility requirements drop from age 25 to 21? In a plan termination audit by the PBGC, I was asked to provide an explanation as to why someone did not enter the defined benefit plan until 4 years after their initial employment date. I don't have census information for the early 1980's so I can only speculate that it had something to do with the change in eligibility requirements. This individual was only 20 when he was hired. I don't have a copy of the original plan document.
Number of replies posted  2 replies      Number of times viewed  29 views      Add Reply

austin3515 created a topic in 401(k) Plans

Unpaid Condo Fees Enough to Support Hardship Distribution?

Apparently the bylaws of a particular condo association say that non-payment can result in a foreclosure on your property. Has anyone approved a hardship based on a delinquent condo fee? They have the nasty collection letter from the condo association's attorney threatening that foreclosure is one of the remedies they will pursue.
Number of replies posted  14 replies      Number of times viewed  79 views      Add Reply
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