Leaderboard

In this case it's all the same as the participant is 73 in 2023, is a non 5% owner, and has separated service in 2023. Under original age 70 1/2 rule, Secure 1.0 - 72 rule or Secure 2.0 - 73 rule, I believe you would get the same result in this particular fact pattern.

My memory was off on Self correction by amendment, you can't correct in-service by retro-active amendment to conform to operation, it's you can amend hardship retro active to conform to plan's operation, and only if it was primarily for NHCEs who were affected. So in this case the only "correct" way to fix is through VCP. Now if the client finds the resolutions he adopted in December 2022 terminating the Plan in December 2022 and gives them to you, I'll leave it up to you whether you want to walk away from the plan or play audit roulette. As for the failure to get Spousal consent, the fix is to get Spousal consent. If the spouse can't or won't consent the Plan is responsible for paying the spousal benefit.

That's mostly right. Except as Lou said, the fixed match has no cap on the amount, but still cannot match on deferrals over 6% of pay. That piece is a cornerstone of the triple stacked match.

Did the new rules change the RDB? I thought it just raised the age from 72 to 73. So if he is 73 in 2023 and separates service in 2023 wouldn't he need a 2023 RMD with an RBD of 4/1/2024? Am I missing something?

All that sec. 350 did is it made the auto-enrollment safe harbor of .05(8) - which under rev proc 2021-30 was set to expire at the end of 2023 - permanent. The 3-month 0% QNEC and the 3-year 25% QNEC of .05(9) are still in EPCRS and are unaffected.

I guess I would question why the participant has elections for new money that are inconsistent with elections for existing money? Actually, we have no "elections" on file for any participant when they reallocate their investments. It's a one time thing that occurs on demand - and those "elections" are not preserved. New money is (apparently) where the participant wants the money to go - and we rebalance to that election as well.

If you use this, you'll be good with most situations. There will be some changes in 2024. https://www.lfg.com/wcs-static/pdf/Attribution of Ownership in Retirement Plans - PDF.pdf