Leaderboard

This. This. A thousand times, this.

ESOP shares do NOT count for HCE determination.

I believe the answer to the original question is no. 5% owner status for RMD purposes is defined with reference to section 416. 416 says that ownership is attributed under the rules of section 318 when determining who is a 5% owner. Under 318, stock is attributed from a trust to the beneficiaries of the trust, except for stock held by a trust qualified under 401(a).

The ADP test will be deemed to pass. Because of the service requirements of the discretionary match, you will have to run the ACP test.

No you don't. See CBZ's post right above yours.

I called EFAST when I received the first email of this type. They answered just short of saying they are testing a new system. They did say that it is not a notice of late filing, it is a reminder to file with options available to do so. In my case the client already filed, the agent even confirmed that the form was received in good order but asked that I still email back a responce with the ACK#. To me it feels like a new system is being tested.

Just one caveat - confirm 9/30 is the last valuation date within calendar year. If you have a daily val plan you do have to use the 12/31 value even though it's not the plan year end.

No. The mandatory disaggregation rules under the 410(b) regs say that you disaggregate a plan into 3 plans for coverage testing—one for deferrals, one for match, and one for non-elective (profit sharing). This is why safe harbor non-elective is tested together with profit sharing, for example. The fact that different match formulas apply to different employees will be tested in the ACP test.

Exactly, but why not amend PS into a 401k and avoid the added expense of plan termination and new plan implementation? Having an asset base at the start may help 401k pricing as well.