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Don't forget that the IRS does webcasts during the year that could give you ERPA credit. They did did one last year on Circlular 230 that qualified for an ERPA ethics credit. For ASPPA, we tried out their one day virtual conference last fall which gave us credits, without having all of the travel costs involved. I highly recommend that conference. Check out your local ASPPA chapter too as they have one day or part of a day conferences that are local to go to.

What does the document say? If she's not otherwise eligible for the PS contribution but the plan has fail safe gateway language you would give her the 0.11% to pass gateway. If the plan now passes all applicable non-discrimination tests I'm pretty sure you are done. If on the other hand she's eligible for the PS and in the same group that is getting 5.5% than she would get the bump to 5.5%. From the way you describe the situation is sounds like she doesn't meet the allocation conditions for PS but is getting a required TH minimum plus the additional amount required to pass gate-way under the plan. So I think she gets the 3.11% contrib and you are done if plan passes 401(a)(4) testing.

Do ESOPs get an exception to the requirement that all plan assets must be distributed timely (generally within a year) after plan termination?

The buyer would not really be starting a loan program. It would just allow the employees it hires to roll their accounts, including the loans, into the buyer's plan. Thereafter, yes, the buyer's payroll function and record keeper would have to service the loans until they are paid off or the employees terminate and have to pay off or get 1099-R'd then.

Are you willing to accept 5500 instructions? Final Return/Report If all assets under the plan (including insurance/annuity contracts) have been distributed to the participants and beneficiaries or legally transferred to the control of another plan, and when all liabilities for which benefits may be paid under a welfare benefit plan have been satisfied, check the final return/report box in Part I, line B at the top of the Form 5500. Do not mark the final return/report box if you are reporting participants and/or assets at the end of the plan year. In addition, there is a similar comment in the instructions at Line 5a for both the Schedule H and the Schedule I.

I agree that if you allocate every payroll when your document says allocate annually you could have an issue, but if we are talking about a 3% SHNE as the OP states, it shouldn't matter. If it were a match and you allocate on a payroll basis, the difference could be significant. That said, there is a difference between allocate and deposit. Many plans allocate on an annual basis, but deposit on a payroll basis with a true-up at the end of the year. Its more of a cash flow management issue. The FTW compliance / admin module has a true-up feature that will calculate it for you. I don't think a mistake that misses someone here and there, which is later fixed, is a big problem. But if you only make the 3% deposit each payroll for the people who defer, and once a year for those who don't, you would have a problem.

Or the buyer could allow existing loans to transfer, while continuing their policy of not allowing new loans.