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Message Boards Digest

October 3, 2022

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

Bri created a topic in Retirement Plans in General

Is Today (Monday, October 3) the SAR Due Date?

"So, we all know the SAR is typically due 2 months after the 5500 deadline. But is that 2 months from the 'real' deadline of 7/31, or is it 2 months from the 8/1 date that came about from 7/31 being a Sunday? And hey, 10/1 is a Saturday so now can we go up to the following Monday 10/3?"

1 reply so far   |    Click Here to Add a Reply

Below Ground created a topic in 401(k) Plans

Coverage of Tipped Employees under a 401(k) Plan

"Client is a high end restaurant where employees are paid a minimal wage, with income primarily from tips. (They get very good tips.) While these tips are actually reported on Form W-2, they are not paid through the firm. Instead, the employees declare tip values to the employer, who then includes in records for taxes and such.

When taxes, health premiums, etc... are applied, many of these employees actually owe the firm money and must pay back the firm these costs with a check they provide to the employer.

[1] Are these employees required to be covered? Looking purely from an IRC 410(b) Ratio Percentage, the answer would be yes. (They are a big chunk of the workforce.)

[2] Another concern is that these employees have no monies paid under the payroll system that could be deferred, outside of a personal check the person writes and gives to the firm to pay back any deferral processed through the payroll system. From a 'paycheck perspective,' these employees have zero income (no check) but do show W-2 Wages from the tips they declare to the employer. So how can such a person make a deferral? My guess is that they make the election against the 'W-2 Wage Amount' (base pay plus declared tips) which the firm contributes, which they employee must then repay to the firm with a personal check."

6 replies so far   |    Click Here to Add a Reply

Jakyasar created a topic in Defined Benefit Plans, Including Cash Balance

Can 5500-EZ Be Filed Before Schedule SB Is Signed?

"Can 5500-EZ be filed before Schedule SB is certified?"

2 replies so far   |    Click Here to Add a Reply

SSRRS created a topic in Form 5500

Deadlines for Statewide Florida Clients Have Been Extended to February 15, 2023

"In case anyone not aware -- ALL parts of Florida have received an IRS extension until 2/15/23."

2 replies so far   |    Click Here to Add a Reply

Catch22PGM created a topic in Retirement Plans in General

Frozen Profit Sharing Plan

"We have a new client for 2022 that has a profit sharing plan. There have been no contributions to the plan since 2017 (there will be no future contributions). In the adoption agreement we prepared for them effective 1/1/2022, we indicated that the plan was frozen on 1/1/2022.

Their previous TPA never amended their adoption agreement to show it as frozen.

We aren't terminating the plan because there are several investments (real estate, private equity) that are not liquid and for some reason the owner doesn't want to find an IRA custodian to deal with it.

When the plan was established in 2013 there were two 50/50 partners and no employees. They filed Form 5500-EZ's from 2013 through 2017. They hired an employee mid-2017 who became eligible for the plan on 7/1/2018 but has never received a contribution, so has no account balance. They have filed Form 5500 (Schedule I) from 2018 through 2021.

Partner A bought out Partner B mid-2021. Partner B's profit sharing plan account balance was rolled over to an IRA on 12/31/2021. Now

we have a single-member LLC as a plan sponsor for 2022 with one account balance and one employee who does not have an account balance and never will. Can we file Form 5500-EZ for 2022 forward or are we stuck with Form 5500?

I am questioning whether or not the employee needs to be considered a participant because, while the plan was not formally amended to be frozen during that time, it has been frozen for all intents and purposes since 12/31/2017, which was before she became eligible."

2 replies so far   |    Click Here to Add a Reply

doombuggy created a topic in Form 5500

2021 5500 Needed for New Plan If Documents Were Signed in 2022?

"I have a combo plan -- 401k PSP and CB plan -- and the documents were signed in February 2022 for the plan year effective 1/1/2021 (a calendar year plan). Does SECURE allow for us to 'skip' Form 5500 filing for 2021 filing because it was signed in 2022?"

1 reply so far   |    Click Here to Add a Reply

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