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I agree there is nothing that precludes depositing SH on a pay as you go basis. Payroll companies don't administer or consult, they process. One of them even has "Processing" in their name. So the client pretty much has to follow their process or leave. I suppose if one wants to push the issue, look to the definition of "Plan Administrator" and the language in the plan giving the PA the authority to interpret the plan doc. Assuming the PA is the plan sponsor, try pointing out to the payroll company that the PA has determined it is not prohibited and if they don't want to allow it they are exercising discretionary authority over the plan, making them an ERISA fiduciary. Sometimes the "F" word scares them, sometimes not.

I say no and I think this thread confirms it. But, there is nothing preventing the plan from paying the CPA (or TPA) and said recipient then refunding the overpayment(s) to the employer. I'm not sure I'd go back more than a few months on that though.

Have you had any conversations on what this plan's attorney is willing to call de minimis for 414(s) purposes? the IRS has never defined it. I have had exactly one attorney sign off on a 7 percentage point spread in my time. That was aggressive in my mind.

Read the question.

If you were compelled to pump out the modules and do a brief read of the CPC examination booklet I would think you could make the November examination deadline. A month for the modules and a month for the CPC exam. If you did well on the other exams, and you took them recently I'd say do it just to get it out of the way because the information is probably pretty fresh.

And tell your client: you get what you pay for.

ERISAGal, if you think that the plan document requires it now, then presumably unless the language was different in prior years (and you say it was not), then they have a "failure to follow" plan document error for prior years that would be correctable only under EPCRS. In similar situations I have looked hard to determine whether there was any possibility that the plan language could be interpreted in a way consistent with the way the employer operated the plan. Sometimes it can be. When it cannot, we recommend EPCRS, which of course will cost a little in terms of the likely requirement for make-up contributions.

Google "taxation of VEBA withdrawals" and you'll find a lot, including this, which indicates that distributions for qualified medical expenses should not be taxable. However, just because distributions were reported to IRS does not mean they were reported as taxable - double check your 1099. If you still have questions, contact the plan administrator, which should be listed in your Summary Plan Description. Hope this helps, good luck. https://www.investopedia.com/terms/v/voluntaryemployeesassoc.asp