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This response is based on some inferences and is not advice. I am uncertain what is meant by your award of “an annuity at fifty percent.” You report that you were awarded a portion of your former spouse’s pension as a separate interest. With respect to the remaining portion of the participant’s interest that you were not awarded, how can you be a surviving spouse? The reason you were awarded your separate interest is because you got a divorce. You are no longer a spouse of the participant, and therefore cannot be a surviving spouse with respect to what is left of the participant’s interest. The plan knows you are no longer a spouse because of the QDRO. It does not matter that the designation of you as a spouse was not updated. The plan has sufficient records to determine your status — not a spouse. The plan is not going to pay a surviving spouse benefit when there is no surviving spouse. The plan will enjoy an actuarial benefit from the early death of the unmarried participant. If the plan has an option for a survivor annuity for a non-spouse, and you were designated as recipient of that survivor benefit, you might have something to go on if the designation of survivor were not updated after the divorce. I am guessing that most pension plans provide survivor benefits only for spouses, and this is one.

1 man LLCs taxed a sole-proprietor report income on Schedule C just like regular self employed. the LLC just gives an extra layer of protection as to what assets folks can go after. If you are worried, have the LLC adopt as lead employer and have his prior sole prop adopt as participating employer. That way you have the EIN from the LLC for Plan doc and 5500 but pick up all the income/service for 2024 and can use full plan year. It will all collapse back to him.

let's not overlook that the Trust might have been already created when somebody (the TPA?) has apllied for the EIN for the Trust. Thus, IRS "might already know" about the Trust. I am totally with Lou regarding the codes of ethics and Standards of Actuarial Practice that certified actuaries must (and should want to) live by. This mess is really messy. I personally would not be comfortable touching this without an ERISA counsel. Regarding who is here to blame - this is definitely a client's fault for dropping the ball. Nevertheless, the TPA should have taken some action - IMHO. This sentense "The Administrator was under the impression that a 5500 wasn't needed until the assets got to $250k" highlights the issue.

Because the Plan needs a Cycle 3 restatement by 3/31/2024 and they are on their list of maintained documents. It seems this TPAs implementation, document, administration, client communication, and actuarial services appear to require a bit better coordination.

Well the V stands for Voluntary so you don't have to, but if you get the invite from the DOL and don't take advantage of the program, you do have a higher risk of DOL Audit, or so I've been led to believe from other threads on Benefitslink. But it sounds like you have properly reported late contributions, so I'm not sure under what theory you would file amended returns to remove them from the filings.

If you are receiving a separate interest annuity there is no survivor annuity benefit. You are the owner of your separate interest, just as if you had been working for the company and retired. Your annuity will continue for your entire lifetime. And your separate interest annuity is not dependent on his retirement. The fact that your annuity will continue for your lifetime is the actuarial equivalent of what you would have received if your were awarded a shared interest. You don't get both See below re: shared interest. You can choose to start your separate annuity if he is over age 50 and is eligible to retire. It's actually a little more complicated than that - IRC §414(p)(4)(B), known as the "age 50 rule", provides that the “earliest retirement date” is: "the earlier of two dates: (i) the date on which the Participant is entitled to begin receiving benefits per the terms of the Plan; or, (ii) the later of: 1) the date the Participant reaches age 50, or: 2) the earliest date on which the Participant could begin receiving payments under the Plan if the Participant separated from service." If you are already in pay status you are receiving your separate interest and that's exactly what you are entitled to receive. The sort of survivor annuity you are talking about is associated with a shared interest annuity whereby you receive a share of HIS annuity if, as and when he retires, and when he dies you receive a survivor annuity of a certain percentage. I don't know where you are listed as a surviving spouse, but I don't think that had anything to do with your entitlement for a second survivor benefit. BUT all separate interest annuities are not the same. Some provide that if he dies before he meets the age 50 rule requirement, that you will indeed receive a survivor annuity as if you had been awarded a shared interest. But as I said, if you are in pay status you are likely getting everything you are entitle do. If you want to send me a copy of the QDRO I will be happy to review it for you - no charge. Email it to me at marylandmediator@gmail.com David

Some TPAs recommend setting an arrangement’s initial (and only) default contribution percentage at 10%. Their reasoning is avoiding escalations. Your hope that fewer inattentive participants fall into a deferral one regrets might help a little. Setting the contribution percentage is a plan-design, not fiduciary, decision. This is not advice to anyone.

JA, based on the forum you posted in, is this a plan of unfunded deferred compensation for selected executives?

Surviving "spouse" I am betting the definition section of the plan covers this clearly.

It's possible the portion that could be payable to a surviving spouse is the same (or close) to the amount you are already receiving. You need to carefully focus on the surviving sp. language in the QDRO.

It depends on whether they were a 5% owner in the year that they attained the applicable age. If they were a 5% owner at any time during that calendar year, then they must take an RMD. If they were not, then they can delay RMDs until their actual retirement. Age 75 in 2024 means DOB was in 1949, which was the SECURE transition year. If the DOB was on or before 6/30/1949 then it is age 70-1/2 and the applicable year would be 2019, if was on or after 7/1/1949 then the age is 72 and the applicable year would be 2021. Regardless, the 2024 RMD would be zero, since as you note, the 12/31/2023 account balance was zero.

Looks to me like Plan A does not pass ratio percentage (I get 55%). If the CG can satisfy average benefits then you could test A separately on ADP and the PS appears to be a safe harbor (depending on comp definition). If you do not pass average benefits then you MUST aggregate A with B to satisfy coverage and then must also aggregate to satisfy nondiscrimination (ADP, 401(a)(4)). Since B is cross-tested, you may very well have to run average benefits for the CG anyway, so you'll have your answer on the above. Note if you do not HAVE to aggregate, you may permissively aggregate and do so independently with regard to 401(k) and 401(a). If you want hasenpfeffer sometimes you have to go down that rabbit hole!

Assuming C has no employees, then A: (2/80)/(1/22)=55.00% B: (79/80)/(21/22)=103.45% So plan B passes the ratio percentage test, plan A fails ratio percentage but might pass average benefits. If A fails average benefits, then it would need to be aggregated with B for coverage. Whatever aggregation options you use for coverage, you have to do the same for nondiscrimination (i.e. 401(a)(4) and ADP/ACP). If A and B are aggregated for nondiscrimination, then A's safe harbor formula won't do you much good and you'll have to general-test them.

If a 3-year average W2 compensations was established already, you may not need any current compensation for a defined benefit plan. However, you may need a reasonable compensation paid for services, but this is the question to an accountant/tax advisor.

@Peter Gulia if I can't rant on message boards, where shall I rant?