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(Send the IRS just one of the five dogs at the poker table.)

I agree with Mike.

This is from 35.3405-1T, Q&A F2: f-2. Q. How is withholding accomplished if a payee receives only property other than employer securities? A. A payor or plan administrator must satisfy the obligation to withhold on distributions of property other than employer securities even if this requires selling all or part of the property and distributing the cash remaining after Federal income tax is withheld. However, the payor or plan administrator may instead permit the payee to remit to the payor or plan administrator sufficient cash to satisfy the withholding obligation. Additionally, if a distribution of property other than cash includes property that is not includible in a designated distribution, such as the distribution of U.S. Savings Bonds or an annuity contract, such property need not be sold or redeemed to meet any withholding obligation.

Not true. In addition to what Bird said, I cannot tell you how many times these sole proprietors, on the advice of accountants or financial advisers, just chunk the entire 415 limit in every year. Then it turns out, they do not have the income to support the contributions. Or, if they are over 50, the contribute the 415 maximum plus a catch-up, but there is no 401(k) component. Or, they take a 'loan' at some point during the year with no paperwork or regard to limits or whatnot. Or take distributions, allowed or not, and don't tell us, and no 1099-R was ever done. Is the administration of a one-participant plan less, or even much less, than a plan with more participants? Sure. But the work should be greater than 'no annual work.'

Sounds right. (And I think you're okay on the second point - the plan would still only cover the owner and spouse.)

The American Miners Act dropped the permitted in-service age for pension plans to 59½, but yes, it has to say that in your document.

Too bad. Should have diversified.

Assuming the husband is over 50, they can both defer $26,000, and the $32,875.50 employer contribution can be split any way they want between the two of them, with the only limits being that they each have to get at least some of it, and the maximum for the wife is $8,900. Also assuming that there are no other employees so no coverage or non-discrimination testing concerns.

I believe that's a yes.

Huh?

No. Under Code section 408(c)(3)(B)(i), "adjusted gross income shall be determined in the same manner as under section 219(g)(3), except that any amount included in gross income under subsection (d)(3) shall not be taken into account." Under 408(d)(3)(C), "The conversion of an individual retirement plan (other than a Roth IRA) to a Roth IRA shall be treated for purposes of this paragraph as a distribution to which this paragraph applies." Thus, a Roth conversion is not treated as part of modified adjusted gross income for purposes of the $129K income limit for contributing to a Roth IRA.

If it is on the intranet, doesn't that mean that only certain people have access to it? Or did you mean to say it's on your internet site? I guess I'd need to know in what capacity you are required to provide the model notice (I.e., as a provider, an insurer, etc.) and to whom you need to provide it. Since there are a few different model notices for certain circumstances, this would be difficult to answer, but if you were speaking generally about the notice that certain health care providers and facilities are required to make publicly available, post on a public website, and provide to individuals, I don't know that an intranet site would be considered accessible. That is just my opinion, and is not intended to be legal advice.

Catch-up contributions do not count towards the annual additions limit. Wife defers $26,000 (assuming we're talking 2021 limits here). That exceeds the 402(g) limit so $6,500 is reclassified as catch-up. The remaining $19,500 does count against the annual additions limit. Her annual additions limit is the lesser of $58,000 or 100% of comp. In this case that's $28,400. The amount she has left under the annual additions limit is $28,400 - $19,500 = $8,900. That is the maximum employer contribution that could be allocated to her for 2021. That does exceed 25% of comp, but remember that the 25% deduction limit is applied on an employer-wide basis. $103,090 + 28,400 = $131,490 x 25% = $32,872.50 is the deduction limit for 2021. You could allocate $8,900 to the wife and the remaining $23,972.50 to the husband, if you wanted to. This is assuming no other employees besides the husband & wife.

A participant who does not keep themselves informed of IRS regulatory activity (presumably most participants) should rely on a trusted service provider such as a recordkeeper, custodian, or TPA to provide them with the most up-to-date information. Pub 590-B (which only relates to IRAs, not qualified plans), even says "If an RMD is required from your IRA, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the RMD to you, or offer to calculate it for you." The IRS does not expect IRA owners to calculate their own RMD amounts.