"We have a handful of large plan audits that fell under 100 participants with an acct balance as of 1/1/2023 but still have more than 80. All the plans in question filed as a large plan in 2022 (Schedule H audit etc). Based on our understanding of the 80-120 rule these clients can choose to continue to file as a large plan and file an audit OR they can choose to file as a small plan for 2023 and going forward until they go back up to 121 participants with a balance which will trigger an audit again. We highly doubt the clients in question will want to continue as a large plan to avoid the cost of an audit and therefore will want to file as a small plan starting in 2023. Our concern is the few that fell right under 100 (lets say 90-99). They may have to go back to an audit soon once they hit 121 again so we want to make this clear to them. We understand if they fall under to 79 they must file as small plan. Is our understanding correct?"

[Sponsored]

EOB sets the benchmark for ERISA expertise. With comprehensive updates and in-depth analysis, it's the resource of choice for professionals. From SECURE 2.0 to intricate compliance details, EOB is your trusted guide in the ever-evolving world of ERISA.

"The IRS is not able to answer this question for me. If a Plan Administrator is responsible for several ERISA plans, do they need to apply for a Plan Administrator EIN (thru SS-4) for each plan? Or does the Plan Administrator just receive a single EIN which is then used for all plans they administer?"

"Lets say I have some one age 83 what would max Lump sum be? Assume all RMDs have been made and distribution will comply with MASD based on prior RMDs. Will check that separately. Trying to make sure my software is calculating max lump sum since participant is close to limit.

• 3 year high salary $200K
• Plan AE 5% and current 417(e) table so 2023 Applicable Mortality Table. APR 6.44 * 200K = 1,288,000
• But I also need to check against 5.5% and 417(e) Table which would be the same 2023 Applicable Mortality Table correct?
• So APR drops to 6.30 and lump sum limit would then be 6.30 * 200K = 1,260,000

Do I have that right?"

"CB plan excludes non-owner HCEs. Joe has been an employee/participant for the past 3 years and getting CB pay credit. He becomes an HCE for 2023 under lookback rules. This means, for 2023, Joe does not get a pay credit, correct? Top heavy provided under DC plan."

"I often read about IRS noticed for non-filing with large penalties -- folks are instructed to immediately file the voluntary way and pay the nominal penalty. Then, send the proof of that to IRS for penalty to be waived. Everyone also says once the DOL sends notice of non-filing there is no way to get any penalty relief (which could easily get into the millions after a few years). I don't ever see anyone post that they received the DOL letter though. Does the IRS one always come first? or, does the DOL send some sort of gentle reminder that allows you to quickly do the voluntary program before their official letter?

I ask because if you look at publicly available enforcement data online there are only a handful of businesses TOTAL each year that have penalties issues above 100k by DOL (like 5-10 total) yet there are millions of businesses that are subject to 5500 filings and MANY that are unaware of filing requirements for various reasons so have multiple years of non filing and are none the wiser.

1. do notices always come from IRS first?
2. Are the large penalties really only assessed if someone ignores letters that give them the chance to do the voluntary program?
3. Is there a reason every posting on here about non filing penalties references IRS notices as the ones they are getting and not DOL?
4. If DOL did an audit of a small plan and discovered 6 years of non filing, would they really assess millions in penalties? I ask because, while this is what they say they can do in documents, the metrics on their own enforcement site show this is not what is actually occuring. Most non filer penalties it shows are the 5-15k range. And, even those are not large in number.'