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A terminating plan never HAS to restate but it must be compliant with all laws/regulations as of the termination date. You should only need to update for any SECURE 2.0 provisions effective prior to 2023, if any. For DBPs, I don't think there is anything.

1. Not included 2. Included 3. Not included For purposes of determining the deduction limit in a profit sharing plan, you only count the compensation of employees who are beneficiaries of the plan, defined as anyone who actually receives a contribution for the year.

Well, it is generally considered un-American to accept any personal responsibility for your own actions. Now, in a reasonable world, of course the participant should share responsibility for ensuring that their election was implemented. I've seen deferral election forms that specifically state that the participant is responsible to ensure that deferrals are withheld according to their election, but the validity of this approach is questionable, even when it is specifically stated. The question is, will the IRS/DOL agree that the employer can skip the correction for the deferral piece, when it comes up upon audit or complaint? I don't believe there is any statutory or regulatory basis for denying this participant the make-up for deferrals. IMHO, the employer needs to swallow the poison pill and make the QNEC. I don't see this as a fight worth having.

The plan document should specify what sources are available for in-service distribution and when - for example rollovers may be withdrawn at any time but 401(k) only after age 59 1/2. So I think the individual source in-service distribution provisions are protected. Contribution sources usually have different distribution restrictions/availabilities as well as tax implications when dealing with pre-tax, after-tax and Roth accounts, so regardless of the protection issue I think it would be inadvisable to enact any such pro-rata procedures. That said, for sources with the same availability AND taxability, I think you can take in-service distributions pro-rata provided the document doesn't say otherwise.

Agree with CBZ with a caveat for #3 that assumes the categorical exclusion relates to all employer contributions under the plan (i.e., not excluded for SHNE but excluded for PS).

The 80-120 rule allows you to file the same form you filed last year. But if you are already a large plan, you need drop below 100 to file as a small plan.

Just curious, is the advisor's name either McFly or Brown?

In situations like this, in a discussion with the investment adviser, I would try to mention the word "jail".

Yes, it is that time of year again – the annual tax lament, to the tune of “Yesterday” by the Beatles. Remember, it is only when the final line is truly sung from the heart that one can appreciate the scope of anguish and angst that the artist is attempting to convey… Yesterday... Income tax was due, I had to pay... All the funds I tried to hide away... I don't believe, I'll eat 'till May. Suddenly... I'm not sure that I am fiscally... Ready for responsibility... Oh yesterday, came suddenly. Why, I Owed so much, I don't know, I couldn't say May be Forms were wrong, how I long, for yesterday. Yesterday... Seemed like prison time was on its way... Now I need a place to hide away... While keeping IRS at bay. Why, I Owed so much, I don't know, I couldn't say May be Forms were wrong, how I long, for yesterday. Yesterday... Taxes due, I filed come what may... Losing all deductions that's my way... Of giving IRS my pay. mm - mm - mm - mm - mm - mm - mm.