"My client is undergoing an IRS audit. They filed a Form 5500 that requires and IQPA auditor's report, which was missing since the IRS is auditing the plan for issues in compensation utilized to determine benefits. My client received a rejection letter from the DOL. Any ideas on how to respond if the IRS has not completed its audit within the 45 day timeframe? I'm thinking that they should send the rejection letter to the IRS agent working on the audit and alert them of the ramifications of not correcting the Form 5500 in time."

"We are trying to provide TPA services to a plan that had, until 2019, been serviced by a TPA called CWM Retirement Plan Services, LLC, in Massachusetts. They have not responded to our communications in any form. I now understand that they were shut down quite suddenly and dramatically. It seems clear the owner is not available to provide any information. Is anyone aware of how we might be able to obtain records that had been held by CWM Retirement Plan Services? For example, did another TPA take over their files? Any help or information will be much appreciated."

"Plan sponsor missed deposits of some 2022 deferrals; they were deposited in early 2023. We have calculated lost earnings and prepared Form 5330 to report and pay the excise tax on the lost earnings. We do the plan administration annually. According to the IRS forum from 3/24/2011 (posted online) they indicate lost earnings have to be calculated for the year in which the deferrals were late, and also for the year in which the lost earnings were deposited. In fact, it uses a pyramid approach, such that you must deposit the lost earnings for the late deferrals plus the lost earnings for the prior plan year. It sounds like you have to file two Forms 5330 for one delinquent deposit if the lost earnings were not deposited in the same year as the late deferrals. How many Forms 5330 can be filed for the same plan in one year? We have a client that is chronically late in making deposits. So for 2022 we will report lost earnings on those late deposits of 2022 deferrals in 2023, then we will calculate lost earnings through the date of deposit in 2023, plus lost earnings on the 2022 lost earnings, plus lost earnings on late 2023 deposits. Do we file a 5330 for the lost 2023 earnings on the 2022 deferrals deposited in 2023, and then another 5330 for lost 2023 earnings on late deposits of 2023 deferrals?"

"I've had a one-participant ('solo') 401(k) since 2015. Out of ignorance, I treated the plan like an IRA, and transferred the plan between Vanguard and Fidelity several times. I did not retain complete records for these transfers. My intention was to retain the same plan, but I incorrectly incremented the plan sequence number, and I do not remember whether I adopted a new plan or amended an existing plan in the paperwork for 2 of the transfers. My plan hasn't had a balance of over $250k until 2022. Last month, I received my 2022 Annual Valuation Statement from Fidelity and completed a 2022 5500-EZ, which is saved (but not submitted) on EFAST2. While filling out the form, I realized that the IRS may take notice of my sequence number of 003 and wonder why I haven't filed a final 5500-EZ for 001 and 002. That led me to Google, where I got spooked by the consequences for mishandling a 401(k). So, I want to terminate the plan and use a SEP instead. I should have never had a 401(k) in the first place. I need professional help to

• obtain the correct plan documents from Vanguard and Fidelity -- I don't even know the 'magic words' to say to the phone reps so they send the needed materials, and
• review them and confirm that I didn't make any mistakes that would preclude terminating the plan.

I've reached out to a couple TPAs, but I get the feeling the assistance I need is too small of a job for them. I suspect this may be because everything might be fine with my plan and there is no remediation work necessary, or because my goal is to get rid of the 401(k) and I will not need ongoing administration. Can anyone here recommend a firm -- even their firm -- that could help with an individual's one-off case? Thanks in advance for any leads."

"Is it common to amend a plan at year end to add in a profit sharing arrangement? Or is it okay to have a profit sharing arrangement in the plan that is not used? For instance we have a discretionary profit sharing arrangement for Pro Rata profit sharing on the plan but they do not do a pro rata contributions. If the plan also makes a safe harbor match then would they still not need to do compliance testing? Or does it lose the exclusion from compliance testing with safe harbor because it is an option for them to profit share?"

"Is the 408(b)(2) required for a Trustee directed pooled fund? It doesn't appear that the investment people do it, and the client is asking. I wanted to confirm if it was required under this scenario or not."