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because last year's cost of living was 0%, therefore despite a formula which would normally have caused an increase last year, the special rule "NO COLA, NO increase in the TWB" so if you don't drink cola, there is no increase in your 'wage base' the most recent version of my spread sheet PLAN LIMITATIONs I posted elsewhere even has a chart indicating what the wage base would have been except for this special rule.

I can't believe I actually agree after that exercise...MIND BLOWN

Mathematically? Or the idea that they're running out of money?

Wow. I just plugged this scenario into my very own battle tested loan worksheet, and low and behold it is as ETA suggests. If I say the current outstanding loan balance is zero, max loan is 8,616. If I say the outstanding loan is 8,616, the max loan is again 8,616.

Our clients would fire us if we attempted to charge them anything for this. And honestly, I feel like this is why they hire us. Rightly or wrongly, we would just pay the penalty in this situation. Not trying to be sanctimonious, that's just how we would handle it.

But who is going to pay the penalty, now that's a different matter. Lots of blame to throw around here. I blame the CPA for not having a process (or following it) to see that all audits get through partner review or otherwise finalized. I blame the TPA for not having a process (or following it) to see that the 5500, indeed, was filed. I blame the sponsor/administrator for not having a process (or following it) to see that the 5500, indeed, was filed. Maybe $500 apiece?

Remembering that free advice is worth what you pay for it... Swallow hard, and file under DFVCP program and pay the penalty. No more worry, stress, uncertainty, or unproductive and non-billable time spent. Others may think I'm crazy, and have an entirely different opinion. Good luck.

What I find most interesting about the September rates announcement is that they simultaneously revised downward both the July and August rates meaning that it was (barely) possible to have accurately predicted a September rate that would have barely registered an increase but there would have been no increase! Makes advance hand wringing even less productive.

There is no excise tax for a corrective refund of a 415 excess, to my knowledge.

I asked the ERISA attorney most of our ESOP clients use about how much the coming pre-approved ESOP documents will affect his practice. He replied that there is more than enough work for ESOPs other than the plan document to keep him busy. The last ESOP he helped install for a client involved three owners moving to a leveraged 100% ESOP-owned S-Corp. There were nearly 20 legal documents he prepared in addition to the plan document. I don't see how you can properly start an ESOP without a competent ERISA attorney, even if you are going to use a pre-approved document.

Remember also if it is decided the plan document doesn't address this situation all plan documents allow the plan administrator to make reasonable nondiscriminatory interpretations of the plan provisions. In this case it sounds like you should make some recommendations to the plan administrator as to what they should and could do. (I agree with others the best decision is immediate entry) After precedent is set I would make sure that decision is documented and followed in the future. There might even be some benefit to making a note so that the next time the two plans are amended or restated the decision actually be added to the plans so it is clear.