"A plan filed its 2022 Form 8955 SSA on paper. A recount of their information returns shows they were over 250 and they should have filed electronically. I believe this voids the paper filing. The IRS says penalties for late filing can be waived if a late Form 8955 SSA is filed along with a Form 5500 SF under DFVCP. But the IRS instructions for that relief indicate a paper Form 8955 SSA should be filed indicating the DFVCP filing. That is, not an electronic filing (which has no flag for DFVCP). So, should the plan file under DFVCP for 2022 even though the Form 5500 SF was originally timely filed and resubmit the paper Form 8955 SSA to the IRS with the DFVCP indicator marked? Are there other options? The late penalties for Form 8955 SSA under the SECURE Act are hefty ($10 per participant per day). Of course, just to confuse things, 2022 was the plan year for which the IRS sent out late filing notices in error."

"I have a husband wife CPA firm. The plan is designed with a 59-1/2 normal retirement age. They ask if they can take partial distributions from their accounts and roll the money into their IRAs. Neither are RMD age. Anything wrong with that?"

"Employer deducted several participants' Roth as pretax (2022 W-2s reported as pretax) but deposited as Roth with recordkeeper. We discovered while working on 2022. On annual admin report, we reported as all Roth (tying to RK, but differing from W-2s). We gave them these options to correct 2022: Employees can choose to maintain their Roth election. The employer has two options to report the mistake: [1] Issue corrected W-2s and the amount will be considered taxable to the employees for year 2022. [2] Include the amount that was incorrectly designated as a Pre-Tax deferral in each employee's compensation in year 2023. Given it was an employer mistake, you may elect as the employer to compensate these employees for the additional amount owed in income tax (treated as current year income). This would be a complicated process, requiring an estimate of how much each employee would owe in taxes. You would need to reach out to your accountant for this.

"They have not amended the W-2s and do not intend to at this point, nor have they made up the taxable amount. This lingered into 2023, so they first few payrolls were also incorrect. The employer does not intend to amend the 2023 W-2s either and had indicated to use what was reported on the W-2s and make adjustments at the RK to match the W-2s (i.e. move money between sources). When we sent a correction to the RK to make these adjustments, they indicated since 2022 was not done this way, they didn't think 2023 should be either. We aren't sure how to handle -- the IRS would surely be upset they are missing out on the taxes and the DOL would surely be upset the deferral elections were not processed correctly."

"The stability period always starts on 1/1 for 417(e) purpose and it starts on the valuation date for funding assumption purpose. Am I understanding it correctly? Tried to find the regulation about the definition but can't find the specific definition of the start date."