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For those of us who are less immediately knowledgeable than Ubernerd, My 2 cents, David Rigby, and Mike Preston, it would be nice if the IRS published in the Internal Revenue Bulletin the next year's table (even if nothing but its caption changed) with a one-paragraph introduction about why it didn't change.

It was nice of them to put this all down in one place. Great example of how regulations can destroy something that's supposed to be a nice benefit. https://www.irs.gov/pub/irs-tege/irs_reporting_disclosure_guide.pdf

I don't believe you can file an EZ for 2015 as the Plan had a non-owner participant at some point in 2015.

A non-spouse beneficiary can elect a rollover, but only to an inherited IRA. So, it must be rollover eligible, and therefore, subject to 20% withholding if taken in cash. Don't have cites handy.

If the plan's administrator has not decided that the participant is dead and no one has submitted a claim for a death benefit, the administrator might consider that it has no current need to discern who might be a beneficiary. Consider that reaching-out efforts often spark false claims. If the participant's employment ended in 2014 (and the balance is low enough to call for an involuntary distribution), shouldn't a routine processing of involuntary distributions have emptied the account before 2016? The plan's administrator should use or engage identity-control, death-information, and address-information services that are under the administrator's control, without communication to a person who seems to be the participant's relative.

If the test is passing at just gateway, lowering comp will lower allocation. 5% of $25,000 is less than 5% of $50k. [Thanks, Captain Obvious!]