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Did you check the linked material?

Nope https://www.irs.gov/retirement-plans/simple-ira-plan-fix-it-guide-your-business-sponsors-another-qualified-plan It is a waste anyway. The ROBS should allow for 4k deferrals and employer contributions for the "owner" and the employees. There is no need for another plan besides the fact it can't be done.

1) No 2) No (they are in NY) So there's no attribution, which is what I thought. Thanks!

I will say, if you've got just the owner and two children, you don't really have nondiscrimination/coverage to worry about. Ha, what's the worse sin - backdating the document or backdating "I'm not interested" election forms from those kids who still want to share in the inheritance some day? 😈

@C. B. Zeller yes I believe that's the basis for this provision, and also assuming you've otherwise satisfied 1.461-1(a)(2) for accrual deductibility. I know I briefly worked on one pension plan that used this arrangement, but 20 years later I know I can't locate it. Otherwise, my wife was employed by Wyeth Pharmaceuticals, their pension would have determination letters and multiple audits over the years (it still survives today as the "Legacy" Pfizer Pension, albeit frozen since 2009). @Luke Bailey @Peter Gulia no, I don't think the few weeks extended much past the first week of February, if that far. Based on payroll timing limits, the longest practice application would be end of January. Biggest reason for the delay that I can think of was for one-time deferral elections. @BelgarathUltimately, no I don't think such a bonus would be part of the 2022 W-2, those regs are pretty clear that its paid within the limitation year only. Could it have practical applications to an employer allocation; yes. Could it be used in a projection; why not, I'll project whatever you pay me to. Could you use it to manipulate compensation basis for 401(a)(4) testing; maybe if you satisfied 461 accrual rules, felt it meet the 415 timing requirement, and passed 414.

Bird, where is that 25% limitation on employee deferrals indicated? I'm peeking at 408(k)(6) which seemed like the obvious spot, but didn't see it.

The employEE contribution limit in a SARSEP is indeed 25%. Total allocations, with employER contributions, could (theoretically) be 100% of pay, although I can't think of an example where that could happen since the SEP part has to be allocated pro-rata, or with permitted disparity which isn't going to get anyone near 100%. (Y'know, you're right, there are some built-in apparent contradictions in those Q and As. All statements are correct - the annual additions limit is in fact 100%, but the other limiting factors won't let anyone get there.)

Sure. The complexity is going to be in the Federal income tax area, Santo Gold.

I hope not. I agree, although they don't really spell it out in the reg. This leads to the interesting situation that many employers who may have adopted the W-2 safe harbor may actually look slightly beyond the participant's actual W-2 for the plan year as long as they adopt a consistent approach.

I have multiple clients a client who give 10% profit sharing. Another who did 15% for decades (until they got bought out). Clients want what they want, our job is to help the get it if it's legal.

Possibly the "first few weeks" rule of 1.415(c)-2(e)(2)?

My experience is the opposite, perhaps because I tend to work with larger employers than many of the regulars on these message boards. During the past ten years or so, the rules regarding rollovers and in-plan Roth conversions have increased, not decreased, interest in accepting voluntary employee after-tax contributions.

To my knowledge yes, although these situations have me looking for a sharp nail to step on. I'd hoped that your title (both spouses) meant a polygamy question, lol!

Our firm does not administer these, so I may not be much help. However, one of our concerns is obtaining a legitimate valuation of the stock. The last plan with a ROBS transaction we looked at, the stock valuation provided to us was literally just a value written on a piece of paper determined by the owner. I think obtaining a legitimate valuation from a professional is expensive and the cost may deter owners from obtaining a proper valuation. We ran away from this one. We don't see ROBS often, but this is one reason we don't have interest.