"A single member plan a year ago (2019) rolled into the plan a large sum and the sponsoring business intended to hire employees. COVID hit and no employees were hired. A Form 5500-SF with the 'one participant plan' box was checked and filed for 2019. Due to COVID the owner/single participant took a distribution and the assets of the plan are now only $51,000. No employees (just the owner). Do we need to file for 2020?"

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"We have a plan that we just took over as TPA. In reviewing the information we've discovered a loan that issued in August of 2012 that's still showing as active. Does not appear that any loan payments have ever been made. But it's not been defaulted. If I'm reading Rev. Proc. 2021-30 correctly -- section 6.07(3)(d) -- I can use SCP if the participant pays off the loan in full, with interest. Correct? Or do I need to use VCP?"

"A participant who was over age 72 passed away in 2020. Non-owner. The RMD was waived in 2020. His spouse (beneficiary) passed away in 2021. She was over age 72. Money is still in the participant's name in the plan. The plan is terminating. Assets will be rolled over to an inherited IRA. The 3 children are the beneficaries. RMD is required for 2021, based on 12/31/2020 value. Whose age would I base the RMD on? The owner? The spouse? The oldest child?"

"Assume a tax-exempt entity ('Parent') has a for-profit subsidiary ('Sub'). One of the executives of Sub is an officer of Parent. As an officer, he would (at least typically) be considered an employee of Parent. Assuming the plan language permits it, any issue with him participating in 457(b) and 457(f) plans of Parent? Presumably, any 457(b) deferrals should be limited to his compensation received from Parent for his officer duties. Any limits to what he can get on the 457(f) side? It seems like this might have 4958 or 4960 implications."

"A terminating plan has a few participants with balance in the MPP source, from a previous plan. The plan has elected for optional, so if a participant does not take action, can the plan sponsor direct to have the funds rolled over to an IRA account even for those having a balance in the MPP source? Or should it be an annuity?"

"Section 4225(a) requires that there be a bona fide sale of all or substantially of the 'employer's' assets in an arm's-length sale to an unrelated party. Where you have another member of the selling and signatory employer's control group (here a company that owns the building that was leased to the signatory employer), must there be a sale of assets of both the signatory operating company and the related real estate company for Section 4225(a) to apply?

I think the issue is whether under ERISA the concept that all companies in the control group are deemed to be the same employer applies to Section 4225(a) so that all companies in the control group must be sold. I haven't found any precedent for this but this does not sound correct to me."

"We have a terminated participant who would like to transfer the loan from our 401k plan to another 401k plan. How would this process be done in terms of reporting? Would we use code 'G' for the transfer of loan?"

"401(k) plan's auditors discovered a series of missed deferrals. TPA is calculating lost earnings.Plan sponsor will deposit missed deferrals plus lost earnings. Client will file Form 5330. When the Form 5558 was prepared and filed, however, the problem had not been discovered yet -- so the Form 5330 was not extended. Will the Form 5330 be rejected?"

"A Form 5500-EZ filer (owner-only plan) received a compliance notice that Forms 5500-EZ for the periods after 12/31/16 were not received by the IRS. The notice stated that if the forms had indeed been previously filed, then if you provide copies of these filings and they are signed, then the IRS will update their records. The client sent in copies of the previously filed forms for the plan years December 31, 2017-2019, back in December 2020. Now, almost a year later, the client received three separate late filing penalty notices for 2017-2018, and 2019. In addition, then 2017 and 2018 penalty being charged is $150k and $187k. This is well above the $15k max for these years. It appears that the IRS input these copies of the previously filed forms as first being filed in December 2020, which is why they're sending these late filing penalties."

"Can anyone tell me the impact on a 401k plan design -- Related Employers vs. a Multiple Employer Plan?"

"For the 11/27/2020 payroll, a payroll company did not withhold deferrals from a participant's bonus. Can this be corrected? The employer just realized the problem last week."