"Client had a DB plan and terminated it and rolled his balance to his 401(k) plan. This was not a merger and transfer. It was a termination and he electively rolled to his 401(k) plan, waived annuity, spouse waived annuity. We are showing it in the 401(k) records as an unrelated rollover. Now he wants to do a big in-service distribution to a Roth IRA. He is 57. the plan document allows for in-service distribution of rollover source funds at any time. I asked the former actuary who says the DB rollover lost its nature as pension when electively rolled into the K plan and so in-service is allowable. Part of the rollover source is SEP as well. And so the same question applies to in-service from a rollover source that resulted from a former SEP. Summary - can a 57 year-old can he take as in-service part of his 401(k) rollover account which resulted from a terminated DB plan? Thank you! Tom"

"I didn't catch the effective date for Secure 2.0 provisions -- ie plans that are hoping to adopt a plan by 12/31/22 would they still get the 100% tax credit? I've noticed advisors and cpa's still prefer adoption by 12/31, even if we are now allowed to delay until tax deadline. But that may need to be changed based on this provision, at least for this year."

"I paid the 1500.00 fee and filed for penalty relief for not filing ez 5500 from year 2013-2020 in august 2022.On 11/21/22 I got cp283 letter from IRS for tax year 2013,2014 and 2015 that says I owe 150k penalty for each of these years. I had called IRS and he kept putting me on hold to see if I was eligible for a " referral " whatever that means which I wasn't. All they could tell me was that those years were not eligible for form ez 5500. He gave me a fax number to EP Accounts and said I could ask for forgiveness for reasonable cause. On tax year 2023-2015 5500 i wrote in red ink at top "Delinquent Return Filed under Rev. Proc. 2015-32, Eligible for Penalty Relief" because there was no box d to check. Is it possible that they just didn't pay attention to this and that is why they told me they are not eligible for penalty relief? Is my only recourse now asking for an abatement for those years? I can't get through to IRS to ask additional questions. Should I assume this is the issue and fax a copy of tax year 2013-2015 to EP Accounts. Due date is 12/21/22 if that makes any difference."

"A Participant in a Self-Directed plan, that is audited each year, has requested the "Assets held for investment" since having received the 2021 Summary Annual Report. Is it sufficient to provide a copy of the single page from within the audited financial statement that lists the assets held? All assets are held in Pooled Separate Accounts. This page reflects of course the 2021 Plan Year as well as the prior year. If so, should a copy of the Form 5500 Schedule D be included, listing all of the PSAs held? Should the plan provide a copy of the Schedule H Line 4i "schedule of assets (held at end of year)" Attachment, as well or in lieu? Thank you"

"When the Internal Revenue Code of 1986 becomes amended by this week’s Consolidated Appropriations Act, 2023, many provisions that permit a before-retirement payout, including a or an: eligible distribution to a domestic abuse victim, emergency personal expense distribution, hardship distribution (for a deemed hardship), qualified birth or adoption distribution, or unforeseeable-emergency distribution (under a governmental § 457(b) plan), permit reliance on the claimant’s written statement that she meets the tax law’s standard for the kind of distribution requested. (A plan’s administrator may not rely on such a “certification” if the administrator has actual knowledge that the claimant’s statement is false.) Let’s leave aside the public policy discussions about whether it’s wise to allow early access to savings purposed for retirement income. And let’s leave aside discussions about whether a self-certification regime invites a claimant’s incorrect, or even false, statement. Do you see any disadvantage, from the administrator’s perspective, of allowing these self-certification regimes?"

"I have a custodian who did a total distributions this year (2022) for two people (both NHCEs both had RBDs of 4/1/2023) that were rolled over but each had a RMD that was supposed to be processed prior to rollover. I'm pretty sure the fix is that the participants need to be instructed to remove the RMD plus earnings from their IRA as an excess IRA contribution and the Plan needs to issue two 1099-Rs one for the taxable amount of the RMD with code 7 and the other the rollover for balance. Is this the correct fix? Is this an eligible fix under self correction or does it require VCP filing? It's not like the Plan can make an RMD from their remaining balance as the remaining balance is now $0.00."

"Plan has 1 year/ 1000 hours for eligibility. There was an amendment done to allow an employee into the plan early. Basically anyone employed on such and such a date is allowed into the plan. Client is putting in a PS contribution before year end. She does not want to include the employee who was let in early in the PS allocation. There is nothing in the document that state this employee is not entitled to an allocation. Document states that any participant who has worked at least one hour during the year is entitled. What can be done? Amend the document now? BTW, that participant is me!"

"Client passed away this year. She was a dentist and ran her business as a sole prop. I work for the decedent's financial advisor and am working with her CPA on her estate issues. The CPA does not know what should happen with the remaining contributions that were scheduled for this year. Can we accept a post-death employer contribution if she was a sole proprietor and there is technically no separate employer? Thanks."

"Good morning everyone! Have an old client that had terminated the Plan back in 2017 (all participants had been paid out). The problem is that they left a Forfeiture Account open, that remains open today. Obviously we'll need to file Form 5500 for the back years, since there was still money. The question is what should be done with that Forfeiture money? There will be some expenses, due to the required filings, but how should the rest be allocated? Does it need to go to the participants who had previously been paid out? What if those participants can't be found? The owner, who was one of the three participants, has unfortunately passed away. Thanks everyone!"

"Hello, I want to ask for your thoughts on Secure 2.0 Section 109 Higher Catch-up Limit To Apply At Age 60, 61, 62, and 63. Am I understanding that at age 64+ the higher catch-up amount is no longer allowed? Seems like that is exactly what the wording says, but just seems odd. Is there a reason for only allowing a 4 year window? If you are age 64+ in 2025 then this has no impact on you? Or am I missing something? Thank you"