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Yes, he can have separate plans. Horribly inefficient to do so, but it isn't illegal. Must aggregate for 415 purposes.

The plan must be up to date in writing as of 12/31/2019. another issue is that assets should be paid out within 1 year of the effective date of plan termination. The plan may now be considered "ongoing" due to not timely being paid out. At minimum at this point it would be a good faith best practice to amend and restate.

Is this one business or two? If it's one, she's not treating it as one. If it is one, then why does she have an LLC taxed as a corporation but reports on a Schedule C? If it is two businesses, then the Schedule C could be an adopting employer and they could be eligible earnings.

Deadline not extended, 2 unrelated plans, too late to remove the funds. There is no provision in the plans to remove the funds after the deadline since they are unrelated employers. What IRS will see is that $39,000 was contributed on the W-2's. But they see similar situations often and the remedy is that the amount over $19,500 is taxed with the 1040 return. But the Roth was already taxed, so no tax implication on the 1040. I'm thinking that the best course of action is to do nothing and wait to see what IRS says when the 1040 is filed. And I'd really like to see the regulation that addresses this situation. So far, I haven't been able to find anything.

This is my prime gripe with EPCRS's correction of this issue. It leaves zero responsibility to the participant. I ask for 5% of my pay taken out, and then nothing happens. Free money baby! I'm almost hoping my ER messes up...

Today is the first day of the rest of your life. It's also the first day after my retirement. After 43 years of being an actuary, I'm moving on to other things. It has been a wonderful profession. Thanks to Dave Baker and BenefitsLink, and all the contributors here, for helping. My brain will not atrophy, at least not immediately; I'll be glad to help anyone who needs anything. A brief reflection on the most important rules of consulting: 1. Never lie to your clients, or your colleagues. 2. Never be late for a meeting. 3. Date everything, and never back-date anything. 3a. Date and initial all worksheets, drafts, etc. Don't toss any of them until you have completed the final version. 4. Remember that you are selling expertise and creative thinking, not trying to fit your client into a pre-determined solution. 5. Professionalism and integrity matter. Good luck. Rigby out.

Not only that... with 90% deferral, net check would be essentially zero. That's gotta be noticeable.