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I know it is off topic a bit but it has been brought up. I worked for the IRS back in the '80s and one of the things we were trained in was looking for 1099-R people who were in fact employees. This is NOT something you can just agree to do. Too many people think if a person signs a contract saying they agree they are an independent contractor then they are one. That isn't how the law works in this area. You are either an employee or an independent contractor if you meet the definitions of either one under the law and no agreement can say otherwise.

I would definitely go with a new plan. No telling what kind of issues you might create by trying to roll the years forward without actually doing anything.

Each year, I end up doing a different program. This year, I did Beacon Hill Financial Educators (bhfe.com) CPE. Just thinking, our discussions on this board should qualify as CPE. Perhaps we should reach out to the owners and see if we can get some certificates printed 5 minutes for each post would satisfy all my CPE Good Luck!

Well, there is a testing option to include the otherwise excludable HCEs in the main group while excluding all otherwise excludable NHCEs. You have to read your plan (even if you refer to the Basic Plan Document). Back in my first two years in the industry, I used to hate when a director would ask me 'what does the plan say'. 99% of the time, this is the answer. Good Luck!

It's possible a smaller firm could service this type of plan. Expertise matters.

I'd create new for many reasons. Agree with Bill that there could be all sorts of created issues.

There needs to be a way for the owner to waive compensation. Sometimes, that can be done if it's set up as a "house account."

If you are tracking different investments, etc I think I would create a new plan but copy employees from the old plan as well as the specs

Suzanne Wynn was ERISAFile and is now with Loren D. Stark Assoc. I talked to Suzanne and they don't have immediate plans for webinars but might. FWIW.

He's HCE for 2016. The only place you'd need to look for that is the definition of HCE in your plan document. Obviously, 414(q) is the statutory definition, but the plan's language will align with that (plus will specify whether or not the sponsor is actually using the top paid group election). For 2016, he can be an otherwise excludable HCE for testing purposes. He's going to be an HCE either way. I'm not sure about what road block you are running into because of his HCE status. Usually, and HCE who gets zero helps the test. Good Luck!

Very clever! Your heart may be three sizes too small, but the brain is full sized. (I carefully did not say the brain is "normal")

so that means it includes yesterday, today but not tomorrow?

I would agree with the payroll company IF they are also using the same method on termination -- that is if there is a last check that deferrals are coming out based on the wages paid after the termination date (which rarely happens). Such that the decision is equal on both ends. Can you make that argument? That said, I think most plans start as of the first check after eligibility but do have to take into account processing time -- so like you said there could still be a donut hole if the eligibility falls within the 5-6 processing days after pay period close but prior to paydate. I would say they need to pick a specific choice and always do it the same way for all employees and NOT have inconsistencies. That's much easier to explain to an auditor than multiple ways with lots of IFs.

PenChecks of course is different then PayChex. And PenChecks can do JUST the whithhodling deposit. They will also do the 1099. If you have pooled or FBO distibutions and you're struggling with all of this, this will "change your life." The process is: Have the investment holder send a check to PenChecks and reference your clients Plan Number (which you would have from setting them up on PenChecks). Enter the payee's elections on the website and the payment amount. PenChecks will match up the distribution you entered with the funds received and sends out the check to the participant, remits the withholding and does the 1099, all for $35. And I do not work on commission!