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From BenefitsLink’s helpful postings of Labor and Treasury regulatory agendas: An agenda item shows Treasury’s estimate, perhaps optimistic, that the agency would publish a notice of a proposed rulemaking by December 2023. https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202304&RIN=1545-BQ70 If you want to send suggestions even before a proposal is published or released, the agenda item names three lawyers assigned to the project.

That is not allowed. The reason you are confused isn't a matter of pension law but employment law. You are either an employee (W-2) or an independent contractor (1099). Also, this isn't something that can be negotiated. Federal law defines if a person is an employee or not. The law isn't very clear but that doesn't mean the two parties get to make it up. I would start by getting the client to talk to someone who knows employment law and get it cleared up what these people are. Once it is determined they are an employee or an independent contractor I think you will find your issues pretty much go away. The only exception to the above could be if they are a type of insurance agent. If they are that let us know.

Red flag number 2.

Plan termination would not work either because of the successor plan rules. Remember, distributions are different than plan to plan/trustee to trustee transfers.

We don't believe that terminating participation is a distributable event. That would require either a separation of service from the employer (not necessarily the plan sponsor) or a plan termination (unlikely, as the plan sponsor wants to continue the plan.) The solution is a spin-off to the now non-participating employer's plan.

You may want to point out to the owner that investing in real estate from inside a qualified plan does not have anywhere near the same preferential tax treatment she may get by personally directly investing in real estate. Taxable distributions from the plan generally are all subject to ordinary income tax rates and do not benefit from capital gains rates. I also hope she has no personal connection with the real estate in question that would make this a prohibited transaction.