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Wouldn't that be nice. We have seen two letters come back so far showing the tax period as 2/28/19 (for CALENDAR YEAR plans) and granting extension until 12/15. What's going on with the iRS anyway?

Thanks, ratherbereading we will I know it will be a blast

You say all participants received SH NE and plan is cross tested. Then to the extent that the already made SHNE support additional contributions that pass testing pass testing you are fine. Just don't forget about gateway and other possible restrictions.

We finally got our hardship approved!! I don’t think we would have had it not been for all your suggestions and getting HR involved on a corporate level. Thank you all so much! You all truly helped me get this done and I’m thankful from the bottom of my heart!

Thanks David for telling me about the rollover and Lou I really appreciate your reply as I have nothing to worry about withdrawing the money where it is already taxed. I had planned never to touch my 401K and I thought 5000,00 really wouldn’t hurt me as long that I had taxes taken out though I still worried. I have been married for 40 years in April so my wife and I are going to Maui flying first class and renting a beautiful condo on Kaanapali Beach. My wife has stage 4 breast cancer so we are celebrating our 50th on the 40th because she might not be around in 10 years, I hope she will be but we don’t the future. I needed the money for the deposit on the condo.

I would absolutely defer to the employer's definition. If the employer classifies it as a "bonus" then it should be excluded. Make the employer decide if this should be treated as a "bonus" or regular salary. Don't let the employer push you into making the decision. Just my opinion...

We've actually seen a lot of interest in this approach - and yes, the BIG drawback is the ACP testing failure. BUT, if the numbers work, then it can be a viable solution for participants who have outside assets into the plan, and then converted to Roth so that future growth is tax FREE. But, it is a numbers game. We have one LARGE law firm doing this - where 1) all of the Associated make in excess of the HCE dollar limit; 2) NONE of the employer contributions go to Associates (i.e. - typical lawfirm 2 plans set-up with a Partner & Staff plan where employer contributions are made and a separate deferral plan for Associates only); and 3) the employer makes the "top paid group" election to limit the number of HCEs - resulting in all of the associates being NHCEs (despite making obscene amounts of money). The "Mega-Roth" feature is limited to use ONLY by NHCEs - which gives the Associates, and staff the opportunity to convert outside assets into tax FREE growth. Works for them. But it requires a situation like that to avoid the ACP issues.....