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I would defer to the company's accountant, but if the consolidated company files a consolidated tax return, then any or all companies within the control group can contribute whatever amounts. However, if A & B file separate tax returns I believe each must contribute and deduct their respective amounts. At least that is my recollection, but again, a qualified tax accountant for the company(ies) should be able to answer definitively.

Actually the advisor in hot waters with this as I am also alerting his client the plan sponsor how the advisor screwed it up without consulting with me, all because he did not want to deal with 1099s. I am not taking any heat for this as I have providing all timely and in great detail. I am sure this is shocking to all. I am also leaning towards having the elections forms redone as long as the client agrees to pay for additional work.

Shocking, SHOCKING than an advisor would do this (sarcasm). I'd be comfortable asking those who decided to leave it in the 401(k) to sign new forms confirming their change of election. The others, I don't think I would want to cover up for the advisor. Just leave it hanging, have them sign new forms to take the money from the 401(k), and document the whole mess thoroughly. The PBGC would probably be content as long as they eventually got their money as requested. Otherwise you'd have to get the advisor to ask to get the money back from the 401(k) and reprocess. There would probably have to be some legal action to get that going; I don't know. Ultimately the advisor will smirk, say "oh I didn't know" and go on his/her merry way.

Paul I, that is out of date. The PBGC does not allow for rollovers to an IRA for non-responsive participants. The plan would need to use the PBGC Missing Participant Program.

Yes it meets the the requirement by making a single entry date on the first day of the Plan year and no one is kept out more than 18 months which is acceptable. Yes folks hired in June have the shortest 6+ month eligibility, May 7+ months, April 8+,....,Dec 12+ months, ... July 17+months

I agree with Lou. You can't make a 2024 contribution in 2023. It is too late to be a 2022 contribution...It must be a 2023 contribution and go on the 2023 5500 and SB.

It was made in 2023 and will be a nondeductible contribution for 2023. I don't see how you don't report it on the 2023, 5500 and SB.