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Under the circumstances you describe, we would also use the 10 that satisfied the entry requirements on 1/1/2020 as the beginning count.

You mention it was "very recent." Was the incorrect filing for the 2020 full plan year or 2021 final/short plan year? If the former, amend 2020 and then file a final for 2021. If the latter, which I assume is probably the situation, I personally would wait until you can file the correct amended 2021 once all assets are distributed (assuming all assets will be out by 12/31/21). If it rolls over into 2022, amend 2021 as non-final and file the final for 2022.

Salary deferrals can only be made from Section 415(c) compensation. See 1.401(k)-1(e)(8). For the self-employed, 415(c) compensation is earned income. See 1.415(c)-2(b) (2). If the client doesn't have any earned income, there can't be any deferrals.

Just file an amended return.

EBECatty, RatherBeGolfing, and Kevin C, thank you for the further information. For those documents that don’t invite an adoption agreement’s fill-in, only the most determined and careful readers will see a base plan document’s choice of law, fewer will try to negotiate a different provision, and yet fewer will have the bargaining power to get a change. Often, the choice of State law will be practically irrelevant, even for a non-ERISA plan. But when this provision matters, it’s likely to be uncovered after it’s too late for an effective change.

The old account balances would cause the plan to be an ERISA plan. The only exception dealt with certain pre-2009 403(b) plans that ceased to have employer contributions after that. Field Assistance Bulletin No. 2009-02.

Just blame it on BG5150. My wife does...