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*CAN* do both. But since it is subject to CBA, *CAN'T* do anything unilaterally.

There is nothing technically wrong with it. It's the textbook definition of a CODA and why technically 401k is considered an "employer contribution." Well, I guess this is worked backwards, but the point is the same. Your choosing between an employer contribution to the plan or a bonus. It is a pre-tax deferral, subject to 402g and ADP testing.

My take on this: If there were more than 100 participants at the beginning of the plan year, you have to file a Form 5500. Unless you qualify for an exemption, you will need an accountant's report. Note: This plan, being new, could not possibly fall under the 80-120 participant rule. You only get out of filing a full 5500 this year if you actually filed a short form last year. With an effective date of 1/1/15, there is no "last year".

I may be wrong, but it couldn't have anything to do with ACA. There is no interaction between ACA and defined benefit or defined contribution plans (or at least none that I know of). Not to say that there is no information ever requested for census purposes with respect to defined benefit or defined contribution employer costs, but I had never heard of any such need. Is your client so difficult that they would not give you any information with respect to something they asked you to do for them? Not that it is easy to get to that point, but a good term for such a client is "ex-client".

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