Defined Contributions Consultant
Plan Design Consultants, Inc.
Retirement Plan Sales Consultant
Nova 401(k) Associates
Healthcare Actuarial Consultant
AimPoint Pension Group
Retirement Plan Solutions, Inc.
EPIC Retirement Plan Services
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
<< Previous news item | Next news item >>
|First Year -- Missed Funding Deadline|
BenefitsLink Message Boards
Nov. 2, 2021
"I have almost no experience with missed funding deadlines. Dealt with them twice in my lifetime but both deposited prior to December 31 of the same year, following 9/15 deadline.
A brand new cash balance/401k-PS plan combo for 2020. Was told that 401k deferrals and safe harbor match was contributed timely. The issues are the CB deposit and PS deposit.
They want to send the IRS a Form 5330 with a letter explaining their situation and ask for any kind of relief. Based on my understanding, they may be late for filing a Form 5330 unless they filed Form 5558 for a possible 6-month extension. Definitely late for 10% excise tax, correct?
From what I read, IRS may impose additional late interest charges. Not even sure if AFTAP was done and/or 101j notice was provided by 10/31/2021. My first thought was to freeze the plan ASAP but apparently they were told by the actuary, not doable. What???
Given that they may never be able to make any of the contributions, what can they do? What a mess."
|Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).|
|An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).|
Advertise in the BenefitsLink Newsletters