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WANTED by the FBI

Assuming you did not make a calendar year lookback election, you will need to know 6/30 year-end comp and calendar year comp for all employees in both companies. For A's plan year beginning 7/1/2020, employees in both A and B who had comp greater than the limit for the period 7/1/2019-6/30/2020 will be HCEs when doing A's testing. For B's plan year beginning 1/1/2020, employees in both A and B who had comp greater than the limit for the period 1/1/2019-12/31/2020 will be HCEs when doing B's testing.

And I suppose the contract with the recordkeeper will spell out exactly where their fault would lie in relying on the participant without trustee authorization, too.

If you are a "3% yes" in the document, you can't go to "3% maybe" mid-year, you would have to make that change effective the next Plan year.

Ugh - I'd forgotten all about that question. Chalk it up to CRS Syndrome...

I'd strongly recommend that the client (whether or not they are, in fact, crooked) seek ERISA counsel.

Opening balance: $A Deferrals: $B Match: $C Distribs: $D Total plan earnings: $X Earnings basis: PARTICIPANT [BOY + .5(contribs) + adjs - distribs] / Plan [BOY + .5(contribs) + adjs - distribs] Total participant earnings: Basis * Total Plan Earnings That is all the attorney needs.

Looks to me like it was corrected by reversing a payroll error that shouldn't have happened.

If it's a pooled account, then accounting/valuation numbers need only include the subject participant and plan totals at needed dates - where is there any need to disclose anything concerning other participants?

From a plan perspective, was his next deferral a negative $750? Is the plan and his account square? It is unclear from your description if all the required +'s and -'s have occurred. As it was last payroll and probably the last business day of the year, I don't think earnings are an issue, no more gap period interest, right? I think the bigger picture problem is that you have an individual, especially in a large company, who was able to manipulate his W-2, payroll and 401(k) on his own without any apparent oversight or controls. If the cash does not reconcile to account and/or payroll records - it may or may not show up on plan (CPA) audit or IRS audit - but if it does, I think the issue is much greater than a compliance limit.

If the goal is to promote networking among forum members, how about a stickied "Introductions" thread? It might repeat some of the same info found on people's profiles, but how many of us are browsing individual profiles? This way everyone's blurb would be in one place.