Message Boards Digest

May 19, 2020

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

doombuggy created a topic in 401(k) Plans

2019 Profit Sharing - Now Want to Fund But Already Filed Tax Return

"Client asked me to calculate their SHNEC and PS for 2019 earlier this year. In March they confirmed that they wanted to do both but in April they changed their mind and said they only wanted to fund the required SHNEC. Apparently they have filed their corporate tax return for 2019. Today they came back to me and are asking if they amend their corporate tax return for 2019, can they fund the 2019 PS that we had calculated for them and they later decided not to do?"

4 replies   |    72 views   |    Add Reply

JMP created a topic in 401(k) Plans

Mechnical Aspects of Becoming an 'Adopting Employer'

"Business 1 - 401k plan is currently in place - 1 Owner.

Business 2 - Business Opens another location 6 month later - that owner is the Parent to Owner 1 above.

Can Business 2 just adopt Business 1 plan as an Adopting Employer, since they will create a Controlled Group? Would there be Plan Amendment needed only for that?"

5 replies   |    65 views   |    Add Reply

ESI2015 created a topic in 457 Plans

Where to Obtain Training for Administering Nonqualified 457 Plans?

"Do any of you fellow practitioners have suggestions on where to find the best 457 training for new staff? I've looked on ASPPA and NIPA and I'm not finding training designated towards just non-qualified 457 plans."

0 replies   |    14 views   |    Add Reply

imchipbrown created a topic in 401(k) Plans

Preparing a Form 5500 Before the Sole Proprietor's Taxes Are Determined

"Former client (and someone I'm still friends with) asked me to look over the mess of the new administrator (rhymes with Daysex). Plan is a 3% Safe Harbor Non-discretionary. For whatever reason the 3% has only been allocated to those employees who are deferring. Last time I checked in on the friend, that battle was still being waged. It wasn't resolved by the end of 2019 to any extent. The client is a sole proprietor with 10 to 15 longtime employees. Maybe 12 are still due their SHNDC and the tax return of the sole proprietor has yet to be processed. So, how does Daysex generate a Form 5500 for signature when so much is still incomplete? Does anyone prepare a 5500 before the sole practitioner's income is known or final contributions receivable are calculated? It's certain to be in the $60k-$75K range. I guess, if I'm Daysex, I can say I only report what's on the books on December 31. Never, ever have I seen this."

1 reply   |    57 views   |    Add Reply

Tax Cowboy created a topic in Employee Stock Ownership Plans (ESOPs)

Self-Correction of ESOP While Under Audit?

"In general, can a taxpayer/ESOP (retirement plan), which is under audit, still voluntarily self-correct matters they deem need correcting? We believe a former ESOP advisor failed to give basic advice on paying off an ESOP note in a timely manner. The TPA allocated stock based on an assumption that the ESOP note was proportionally paid. i.e., 20% of note paid in year 1 and TPA allocated 20% of stock. Also, a former employee of the ESOP TPA may have failed to account for one terminated employee. The ESOP is under audit and I'd like to have the client file voluntary self-correction with DOL and/or the IRS EPCRS program. Anyone ever been successful in voluntary self-correcting while under audit?"

2 replies   |    23 views   |    Add Reply

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