Message Boards Digest

January 15, 2020

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

RatherBeGolfing created a topic in Retirement Plans in General

Do You Prepare Form 8822-B for Your Retirement Plan Clients?

"If not, do you notify them that it is required when there's a change that would require it? In your opinion, is this (or should it be) the job of the TPA, or the CPA, etc.?"

Number of replies posted  4 replies      Number of times viewed  76 views      Add Reply

Cheryl S created a topic in Cross-Tested Plans

Use Cross Tested Formula Even Though Document Calls for Integrated

"I have a client whose plan document states the profit sharing formula is integrated with SSTWB at 100%. They have never made a profit sharing contribution and have decided they want to do one for 2019. There is no one with compensation in excess of the SSTWB. Could we do the profit sharing using a cross tested formula with everyone in their own groups as long as we pass ABT? I don't think we can."

Number of replies posted  3 replies      Number of times viewed  56 views      Add Reply

Lou S. created a topic in Form 5500

Form 5500 Schedule SB Prefix

"If I submit a 2019 Schedule SB before receiving my EA renewal letter, do I use the 17 prefix or the 20 prefix?"

Number of replies posted  1 reply      Number of times viewed  28 views      Add Reply

ratherbereading created a topic in 401(k) Plans

Maximum Contributions for K-1 Partners

"In a discussion with a CPA. He says a partner who receives a K-1 cannot exceed the 2019 limit of $56,000 -- that catch-up contributions never come into play because they have no salary from which to defer. Correct?"

Number of replies posted  7 replies      Number of times viewed  78 views      Add Reply

EagerToKnow created a topic in 401(k) Plans

Late Deferral - 5330 Filing - Multiple Plan Years

"Situation: $4,000 payroll from April 1 2019, not deposited until January 10, 2020. Plan year is calendar year, so it requires 2019 and 2020 Form 5330 fillings. Calculated interest:

  • 2019 $310
  • 2020 $34

4975(a) First Tier Excise Tax calculation (entered on Form 5330 line 3a):

  • 2019: $310x15% = $46.50
  • 2020: ($310+$34) x 15% = $51.60.

Calculation from Exhibit 4.72.11-6 on

4975(b) Second Tier Excise Tax calculation (entered on Form 5330 line 3b)

  • 2019 None
  • 2020: 
    • A: 100% of the 2019 Amount of prohibited transaction reported on 2019 filling $310
    • B: 100% of the 2019 amount of total prohibited transaction $4,000 + applicable Interest $310: for the total of $4,310?

Which would make total excise tax due with 2020 filling of either ($310 + $51.60) = $361.60 or ($4,310+$51.60) = $4,361.60?

Number of replies posted  3 replies      Number of times viewed  59 views      Add Reply

Stash026 created a topic in Distributions and Loans, Other than QDROs

1099-R for Missing Participants (Forced Rollover)

"I had a plan terminate last year and we were unable to locate about 20 participants. We went through the searches, etc. and ultimately had the money rolled into IRA in their names so the Plan could terminate. What is the requirement for 1099-R for these rollovers? Do we do the 1099 with the last known address and just stick it in a file? Is the 1099 required in this circumstance?"

Number of replies posted  2 replies      Number of times viewed  39 views      Add Reply

perplexedbypensions created a topic in Retirement Plans in General

Short Plan Year and Pro Rata Limits

"I am working on a PSK plan with a short PY 7/1/19 - 12/31/19. I am prorating the 415 limit and 401(a)(17) comp limit to 50% of the annual limit. I did not prorate the 1000 hours for plan eligibility or the 402(g) limit. I am questioning the other provisions with hours requirements: Does the 1000 hours for vesting need to be prorated to 500 hours? The plan requires 1000 hours to receive an allocation of the PSC. Does this need to be prorated to 500 hours for allocation?"

Number of replies posted  1 reply      Number of times viewed  30 views      Add Reply, Inc.
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