ANNUAL QES/ROBS PLAN REMINDERS
Quick list of reminders on corporate activities that can have a significant impact on plan compliance for your QES/ROBS retirement plan.
O Do consult with LRS to ensure you operate your qualified corporate retirement plan in accordance with plan provisions and the federal regulations and legislation.
O Do have a Certified Valuation Accountant (CVA) or Certified Business Appraiser (CBA) perform a business valuation when preparing for the retirement plan to purchase or sell shares of the C-Corp.
O Do provide your newly eligible employees with participant plan documents, such as the Summary Plan Description (SPD). And the annual Participant Notice.
O Do pay yourself a W-2 salary for any work performed for the company. And report at least 500+ hours worked each plan year.
O Do ensure your plan is covered by a Fidelity/ERISA Bond, as required by the Department of Labor.
O Do plan to make plan contributions within the first 3 years of setting up your plan, whether through employee or employer contributions, so the IRS can witness constructive use of the plan.
O Do contact LRS if you are working on any acquisition activity or changes to the operating company structure.
O Do work with LRS if you need to close the plan, to ensure required plan termination resolutions and documents are prepared, executed, and a final Form 5500 is filed.
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To remain compliant, do not change the C-Corp structure (ex. converting to LLC or S-Corp). Your company structure must remain a C-Corporation.
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Do not loan money from the C-Corp to any other entity owned by the same individuals (or certain family members) who invested through QES.
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Do not have your C-Corp sponsor another 401(k) plan or SIMPLE IRA or make contributions to another plan.
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Do not pay yourself more than a reasonable salary from your corporation, relative to someone acting in the same capacity.
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Do not move any money in or out of your retirement plan account before discussing with LRS.
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Do not have your C-Corp purchase property/real estate from the same individual or certain family members who invested through QES.