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Be aware of potential 415 control group - if person owns more than 50% but less than 80% of multiple companies, there is not a control group for 410(b) or 401(a)(4) purposes, but that person has aggregated 415 limits among all DC and DB plans sponsored by such entities. If X owns 51% of companies A, B & C, and a different unrelated individual owns the other 49% of each then there is no control group but X has one $56,000 DC 415 limit and one $225,000 DB 415 limit combined among any plans sponsored by A, B & C.

I'll be there as well. You guys put together a great session lineup this year! Lots of new/hot topics on the agenda which is always great to see.

2018 Valuation - You do not have to provide the product of your work for which you have not been compensated. You do have to return client files and information that the client or a third party provided provided to you. Basically, you don't have to hand over the 2018 valuation or your calculations/testing, but you do have to hand over the underlying data you collected from the client or third parties in order to do the 2018 valuation/testing like W-2s, K-1s, financials etc. 2017 Valuation & Plan Document - if the client paid for it, you need to provide it, even if it has already been sent to the client in prior years. You are allowed to charge a reasonable fee for collecting and sending the data though. Nowadays that might be as easy as attaching a couple of PDFs to an email....

What Bill said but that does not prevent someone from maxing out contributions in multiple plans (of unrelated employers).

Larry, that would be just fine. See you next week! WCP

I sure hope to give you more that a "hello". Hope hugs aren't politically incorrect! See you there.

They lose the get out of top heavy free card for 2018. So if the TH ratio on 12/31/17 was more than 60% they have to satisfy TH minimum contributions for 2018. They lose the ADP/ACP free pass too, have to test for 2018. Since they are at 74% on 12/31/18 - they are TH for 2019. It's a bit too late now but given the facts the client should probably have been advised to keep the safe harbor through 12/31/18 and remove it for 2019 while also informing them of the TH nature of their plan and the implications.

The plan is adopted by an employer, and only the income from that employer can be counted. So, if the sole prop adopts a plan, any income received from another employer, whether W-2 or K-1, doesn't count for the sole prop plan (assuming no 414(m), (n), or (o) issues - controlled entities). It's highly unlikely that the 2% ownership will allow him to adopt a plan for that entity, so he has only his sole prop plan and only his sole prop income to take into consideration.

Well, to some of us, volunteering for this would be like volunteering to get some bad virus.

They would definitely have to allow them to defer. The exclusion based on job classification could apply only to the match.

Without saying whether it’s an accurate or complete description of relevant law, here’s what the Internal Revenue Manual, at 4.72.13.14.1 ¶ 10, says: Excludable employees may be disregarded in applying the universal availability test for salary reduction contributions. See 26 CFR 1.403(b)-5(b)(4). These include: . . . . Employees who normally work less than 20 hours per week (or such lower number of hours per week as may be set forth in the plan) Note: This exception must be based on hours worked and cannot be based on a job classification (such as “part-time employee” or “adjunct professor”) unless the classification is defined in the plan using the permitted hours requirements. Once an employee can no longer be excluded under b), the employee always remains eligible to participate thereafter (i.e., once-in-always-in). See 26 CFR 1.403(b)-5(b)(4)(iii)(B) https://www.irs.gov/irm/part4/irm_04-072-013-cont01.html#d0e2551