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Yes. I should have said you may have to ADP/ACP test. I have found that the ADP/ACP will most likely pass with a dual eligibility design because you most likely will have no HCEs. But it does happen. The common problem is immediate HCEs due to owners wifes and or children coming into the plan right away.

Hey Bill, I submitted mine on April 4th, and they mailed it on April 28th. Maybe they were giving me special Senior treatment...

I will assume the plan allows for more than 1 loan. So normalcy is the new loan is a separate repayment schedule. So choice a. I bet you have!! LOL.

Yes it must be distributed to participants, or used for expenses. Who gets it is another matter. If the plan was valued as of a certain date, and a participant(s) were paid immediately thereafter, then I'd argue that they don't share in the gains. If the money was invested and people were getting paid in dribs and drabs, then you have a mess because it wasn't handled properly. We* always quarterback the whole thing - tell clients to move to cash, do an interim val, and pay everyone asap thereafter to avoid this situation. *Well, when I was in charge that's what we did. It's a bit more willy-nilly now.

I believe all employer contributions that are 100% vested can be elected as ROTH which would include safe harbor contributions. I think the 100% vesting of employer ROTH is because the employee is paying the taxes on 100% of the contribution so the IRS doesn't want forfeitures of ROTH. And while it's technically currently available, there is no IRS guidance that I am aware of on how the income is reported to the employee and what withholding rules may apply. So I'm not sure if anyone is currently doing this.