BenefitsLink.com logo   

BenefitsLink
Message Boards Digest

December 7, 2022

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

Tinman created a topic in SEP, SARSEP and SIMPLE Plans

Convert a SEP Arrangement's Document from IRS Form 5305 to a Prototype SEP Arrangement Document?

"Can a sponsor 'convert' their SEP from Form 5305 to a prototype document governed SEP?"

2 replies so far   |    Click Here to Add a Reply
[Sponsored]

Cycle 2 403(b) Pre-approved Plan Enrollment is OPEN

Sponsored by ASC
Enroll with ASC! We provide documents in a flexible and user-friendly adoption agreement-style format, with corresponding basic plan documents. View descriptions of ASC’s Cycle 2 403(b) Pre-Approved Plan Documents and enrollment details here!

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

RMD and 1099-R for Recently Deceased Owner of 1-Person Plan

"Owner of 1-person plan just died, shortly prior to end of year and prior to taking his RMD. Trustee is unable to be legally appointed prior to end of year. I'm pretty sure that, because the plan requires RMD's, an authorization signature is not required. But the recordkeeper is insisting it is. Additionally, because the RMD is formally taken out after date of death, I'm thinking the 1099-R is still treated as an RMD, but perhaps it should be marked as Death instead, even though this is not a Death distribution?"

3 replies so far   |    Click Here to Add a Reply

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

OK to Count Service and Compensation from a Prior Employer?

"Suppose you have an attorney (let's call him Steve) who was a 90% owner in a law firm from 2010 through 2020. The firm dissolves in late 2020. Steve forms a new law firm as a 50% partner with another attorney on 1/1/2022. They will not have any employees.

[1] If they start a defined benefit plan effective for 2022, could Steve's compensation and service from the prior law firm be counted in the new company's defined benefit plan?

[2] Same question, but suppose Steve was only a 10% partner in the prior law firm."

1 reply so far   |    Click Here to Add a Reply

R. Scott created a topic in 401(k) Plans

New Notice Requirement for Flexible Discretionary Matching Contributions

"How are other TPA firms handling this new notice requirement? Will your firm be taking responsibility for filling out the notice and sending it to all your clients who have this flexible discretionary matching feature in their Cycle 3 document? When would you distribute the notice -- at the beginning of each plan year to all the affected clients?"

1 reply so far   |    Click Here to Add a Reply

John M created a topic in Form 5500

Filed 5500-EZ Late by a Few Weeks, Received CP283 with a Huge Penalty

"My wife and I run a small business with no employees. We save as much money as we can in a one-participant 401k plan that is now required to file a Form 5500-EZ each year by July 31 because it has accrued over $250k in assets for myself and my wife.

We had a tough year this year and with everything going on we filed our Form 5500-EZ a few weeks late, hoping it would not be a big deal. We received a CP 283 notice with an enormous penalty that would be a real financial hardship for us.

I understand that, having received a CP 283, we're no longer eligible for penalty relief under for Rev. Proc. 2015-32. Do you think there is some way we could try to file an amended return to still be eligible for this relief? Is there a way to beg for some kind of one-time abatement of penalties? If we're in the grey-area of 'reasonable cause' due to personal issues is there anything we can do to be more likely to get relief? By phone or by mail? Talking to multiple agents? If the due date for the fine without interest is coming up, but we haven't figured out how to get abatement yet, is it better to pay the penalty and hope it gets refunded later, or incur interest if that makes it any more likely to be able to eventually be able to reduce the penalty?"

2 replies so far   |    Click Here to Add a Reply

dragondon created a topic in 401(k) Plans

Eligibility for Participant Who Was Fired Before Elective Deferrals Allowed

"If a plan has a start date of 1/1/2022 but elective deferrals are not allowed until 12/21/2022. Eligibility emails were sent out on 11/21/2022 for participants to determine their contribution percentages.

If an employee was fired on 12/1/2022, is he considered a participant in the plan or because he was fired prior to the first elective deferral being allowed, is he not considered to be a participant? If the employee has to make a safe harbor contribution to save the plan, would that employee receive that distribution? Also will he be considered in the calculation of ADP and ACP?"

2 replies so far   |    Click Here to Add a Reply

Here are the most recently posted jobs on EmployeeBenefitsJobs.com, a service of BenefitsLink:

View job as Onboarding Associate

Onboarding Associate  View details

Betterment
Remote

View job as Plan Change Consultant - RP

Plan Change Consultant - RP  View details

The Standard
Remote

View job as ERISA Counsel

ERISA Counsel  View details

Human Interest
Remote

►View More Jobs

►Post a Job

►Get Instant Job Alerts

BenefitsLink.com, Inc.
56 Creeksong Road
Whittier NC 28789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher

Copyright 2022 BenefitsLink.com, Inc. All materials contained in this mailing are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe | Privacy Policy