"I have a profit sharing plan and the only remaining asset in it is a property worth about $1.3m. I am 78 and am required to take RMD every year, however there is no more cash left in the plan, just the property. I don't want to have to sell the property if I can avoid it. Other than putting an equal amount of cash back into the plan to replace the property, is there any other way I can take the property out of the plan without incurring a heavy tax penalty? Can it be divided up into 'slices' and then use that for the RMD? How does that work? Ideally however I would like to take the property out of the plan with as little tax burden as possible."

"We have a client that amended two previously timely 5500s in December of 2024 (we amended for a system error that caused the wrong plan number to appear on the filing (01 vs 02)). The original 5500s were both filed before their respective deadlines. The client has received letters on both filings with penalties totaling close to $150k. I'm am almost 100% sure that this is an error on the IRS/DOL side. Our solution is to give the clients the original confirm IDs and tell them to go back to the DOL/IRS and explain the situation. However, I wanted to confirm that an amended return is not considered 'late' as long as the original filing was in good order and timely filed."

"Client was purchased by a private equity firm. Does this present any issues other than the usual ones when one company buys another?"

"A literal reading of IRS Notice 2024-02 seems to suggest that each person needs to be told their own personal precise amount of 401(k) remaining for 2025 based on their own YTD SIMPLE IRA Contributions: 

'Yes. Under Section 1.401(k)-3(d)(2)(ii)(D), a notice must accurately describe the type and amount of compensation that may be deferred under the plan for the notice to satisfy the requirements of section 401(k)(12)(D), (13)(E), or (16)(B)(iii) of the Code.'

"[1] The notice is due 30 days before the switch so this is not possible. 

"[2] Nothing in this seems to really suggest that an individualized notice is required for every participant. We are hearing some say that not only do you have to provide them an estimate of what remains for the year 30 days in advance of the switch, but that you also have to follow up after the switch to provide the exact amount available for the year. 

"While I can see the interpretation of the text, to me the spirit of the communication is to disclose the total limit available for the entire year between the SIMPLE and the 401(k). If the above is in fact the requirement, it becomes almost prohibitive in terms of making a transition like this. Small employers can't always get nice Excel exports, and fewer have the ability to do all of the mail merges needed. Please tell me what you guys think!"

"Two employers participate in a plan under one company. If a client is going to acquire one of those companies, what are the options for the 401(k)? They can't merge the whole plan into theirs since there is another employer, correct? Is the only option to terminate those employees from the sellers plan and let them roll over into the buyer' plan?"