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Plan has one HCE who is not an owner. ADP test failed and HCE received $15,000 in excess contributions. ADP test was rerun and determined that too much in excess contributions were distributed earlier this year (ie no 1099-R issued yet) and refund should have only been $10,000. HCE is happy to return the $5,000 to the plan in order to reduce tax liability. Earnings that were added on to the refund will be prorated and returned as well. Ultimately the 1099-R will reflect the lower amount.. I believe this is an acceptable correction, but not sure if we need to calculate earnings on that amount since it was refunded to include with the repayment..

Last minute request to set up a retroactive plan. Upon requesting the Trust EIN, the site wouldn't process online so it will be done old school and they will mail out the EIN. Assuming the EIN does not arrive prior to contribution deposit deadline (10/15), if the actual trust account cannot be formally set up, can the deposit still be formally made?

In a DB plan audit they are asking for the 8955 for that year as 2 employees terminated in the year of the audit 1. Technically you have until the following year to first report the new termination and vested benefit. 2. How do you prove the 8955 was filed if it was mailed ( prior to 2024 still mailed) with regular first class mail? A. Thru showing a copy of the signed and dated form that was mailed in? B. And must a signed copy be located or suffices if just have a copy of the form that was mailed? Thank you

Is there a resource that can tell me how multi employer DC plans differ from single employer plans? A recorded webinar? Other web resources? I have my first true multi employer plan and want to make sure I get it right. (I've had union plans, but they were just plans for the union people of a specific company. Now I have the union's (local) plan.)

Today’s before-publication release of Eliminating Unnecessary IRS Internal Revenue Bulletin Guidance , IRS Notice 2026-58, includes a few items for employee-benefits advisers. Among the 71 items of revoked guidance are: Notice 96-8 , Cash Balance Pension Plans , 1996-6 I.R.B. 23. This notice provides guidance concerning the requirements of sections 411(a) and 417(e) with respect to the determination of the amount of a single sum distribution from a cash balance plan. This guidance was obsoleted by section 701(b) of the Pension Protection Act of 2006, Public Law 109-280, 120 Stat. 780 (2006), which enacted section 411(a)(13) and (b)(5) of the Code. Rev. Rul. 2003-6 , Employee Stock Ownership Plans; Delayed Effective Date; Abuse , 2003-3 I.R.B. 286. This revenue ruling identifies as a listed transaction all transactions attempting to avoid the effective date of section 409(p) by using employee stock ownership plans formed on or before March 14, 2001. Notice 2007-76 , Qualified Transportation Fringes , 2007-40 I.R.B. 735. This notice delays the effective date of Revenue Ruling 2006-57, 2006-47 I.R.B. 911 (regarding the use of smartcards or other electronic media to provide qualified transportation fringes), to January 1, 2009. Notice 2009-31 , Election and Notice Procedures for Multiemployer Plans Under Sections 204 and 205 of WRERA , 2009-16 I.R.B. 856. The notice provides guidance for sponsors of multiemployer defined benefit plans relating to the elections described in sectio

We've recently had several clients struggle to submit excise tax payments online through EFTPS. EFTPS doesn't seem to be of any help when we call. The Form 5330 is not available when the employer is logged in, nor there there a way to select the specific excise tax section. I tried looking somethings up - does the IRS need to make Form 5330 available for that specific EIN? and then the Employer can see it on EFTPS? Does the employer need to call EFTPS? Should employers be going through enrollment for a business tax account under Direct Pay? Does anyone have any tips? I feel like there is something obvious I'm missing, but I've had a few coworkers go through this as well without any resolution.

In a PEO MEP, we are aware that adopting employer X is going to leave the services of the MEP's PEO sponsor - sometime in the next 2-15 days. A participant, looking to get ahead of things, has requested a plan loan. The plan document does not allow repayments after separation. Can the plan sponsor deny the transaction on the grounds that repayments will not be able to be made, so the loan isn't in 'good faith'? Or do they have to let it go through and then it just defaults at the scheduled time? I don't have any information about when X is going to move their money out of the MEP, but it's at least 45 days out. Maybe more - sometimes, they just don't bother moving the old money out (which is a different problem, and not necessarily for today). Thanks.

For a 401(k)-style retirement plan to get recordkeeping services at Vanguard ( not Ascensus), what size and other conditions must a plan meet? Any anecdotal information would help me. Thank you for your neighborly help.

Hello have a situation where Penchecks issued a Form 1099R for a distribution and withholding for the incorrect year because they received the information a day late for their processing. The distribution was for a 2025 RMD. The distribution and withholding were withheld and paid timely. The only issue is the Form 1099R. How exactly can I correct this before the letter comes with the issue which I'm sure will come. Penchecks refuses to process a corrected because they said they received the data after their cutoff. Do I prepare my own corrected 1099R for 2025 and send in to negate their 2026 1099R? Is that going to confuse the IRS with one coming from Penchecks with their numbers used to send in the taxes taxes and one coming from my office. I'm just not sure how to correct this whole situation especially being everything was withheld and paid timely. It's just the reporting. Thank you.

2025 plan was sponsored by partnership (taxed as one) January to October. Jane and Wayne Company, LLC. In November, Wayne left, new company Jane, Inc., an s-corp, is new plan sponsor, new tax id. For my 2026 HPIs, do I consider the entirety of 2025 or just Nov & Dec, the months the current Employer was sponsoring the plan? I am using full 2025 comp for my 2025 testing because only the

I have a 401(k) that is terminating 12/31/2026. How do I handle the RMD's for parts that are still working past 73? Does the exemption if your still working apply?

A new employee wants to roll his previous employer plan balance over to the plan . Plan accepts rollovers. BUT.. he has a loan at the old employer plan and the new plan doesn't allow loans. Does that mean the loan can not roll in? If he can't roll the loan in he'll have to pay ot off... or offset the balance and pay taxes as a taxable distribution. Correct?