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Not a clue! @ETA Consulting LLC Cool! Never used that before. I would be reluctant to consider a contingent preference as ignorable. That seems to me like not taking into account an option because it hasn't yet been exercised. But options are typically analyzed with respect to corporations under 1563. I don't know whether it makes sense to equate corporate options with liquidation preferences. I agree that Derrin is likely your best bet.

ESOP Guy Line 3 above needs to be edited as those dates are impossible unless you have powers beyond things I understand. (one of your rare typos, maybe the first I have noticed) I assume it should be 1/1/2016 to 10/31/2016

I think you can successfully argue both dates. But in theory, in order to terminate on 1/1, wouldn't it also have to be active on 1/1? If we terminate on 12/31, lets say at the very end of 12/31, the plan clearly starts 1/1 as terminated and your count is 99. If it does not terminate on 12/31, it has to start 1/1 as active, right? Technically the count would be 200. I don't think the IRS would ever argue it this way but 12/31 makes more sense to me.

Its fine, unless the document states otherwise.

Maybe it's a typo and they meant 'bungled'

I coonsider the 45 day rule to be abhorrent in that it puts a plan sponsor that is lower on the compliance ladder in a better position than a pro-active, but not perfect, plan sponsor. So, let's see how we can adjust the focus of the proverbial microscope... Is it reasonable to analyze what is really going on and come to the conclusion that the payroll system was not coded correctly in December in that it excluded bonuses? I think most would agree with that statement. In the interim, was the payroll system re-programmed? Probably not. So, even though the deferral amounts happened to be correct, had there been a bonus paid it would have resulted in an incorrect deferral. Can it be argued that correct deferrals have not begun until the payroll system is re-programmed to include bonuses? If so, your 45-day period hasn't begun, yet. Just a thought.