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I was just thinking, say you pay someone a thousand Euro a week. So maybe that's 1,132 dollars the first week of January, but with conversion rates changing, maybe for week 2 it's 1,129 dollars. You'd add them all up and that's their pay for the year for plan purposes. If you pay them in dollars it's obviously easier. But the 415 regs don't exclude compensation based on the location of the services. I don't know how the employee ends up taxed by either or both countries, though. Everything I peeked at started referencing the 800s and 900s of the Code, so I sorta bailed at that point.

If you are concerned file IRS change of address From 8822-B

What if you were to do a currency conversion on each paycheck the employees received? (Not just convert the year-end total as of 12/31's rate.)

I'd like to give you the benefit of the doubt and assume you are using shortcuts in your language. To be precise, it is the presence of annuity options that triggers the QJSA. So it's not like you can just remove the spousal consent (and leave annuity options). Back in the day (1980s!), my mentor had the attitude that you just included any/all options; no reason to limit a participant. Then, the rules changed so if you had any annuity options, the QJSA was the default, which required spousal consent to waive and take a lump sum. Fortunately the IRS allowed us to remove those options without it being a cutback, and we did that for most of our plans.

The voluntary after tax contributions then have to satisfy another ACP test on their own.

But Lou S., you didn't find a definition of "plan," right, just a lot of references to lower-case p "plans" like you're supposed to know what that means? One could well interpret that as being a reference to the "plans" that are described in the first part of the regs as being subject to 416, but I didn't find where the regs actually spell that out definitively.

Aha!. This implies the plan now has spousal consent language. Don't simply ignore it, or amend it away, without checking with your ERISA attorney.

A possible downside of waiting on the $650 deposit,and using the 945-V in January is when a second participant receives a distribution in November with tax withholding of $2,000. Now the total annual tax withheld exceeds the $2,500 limit and the deposit of $650 is late and generates penalties.