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Under the Act, ROTH contributions must be fully vested. Just another delightfully administrative thing to track for Plans that allow employees to elect employer contributions be made as ROTH.

Sounds like you're looking for some actual "hands on" experience/recommendations; for generic "how to" issues, here are a couple of articles that may (or may not) be of help: Breaking Up Is Hard to Do: Exiting a Retirement Plan MEP or PEP Getting Out of a MEP/PEO/PEP Is Not as Easy as You Might Think

Hi John. Assuming the amounts were withheld from pay and not contributed to the Plan timely, I would recommend correction under the DOL's VFCP. The contributions, and appropriate earnings (I recommend using the VFCP earnings calculator), should be deposited now (or as soon as possible). Once the correction is made, a VFCP application would be submitted to the DOL along with proof of deposits, reconciliation to payroll records, etc. In addition, Form(s) 5330 and the appropriate excise tax must be filed with the IRS.

Assume the termination date is 12/31 and you have a similar situation straddling that date. How would you handle it? Typically the check date controls when pay is considered earned and to what year it applies. Your plan could be different so you have to read it and the termination amendment. But if it was my client, nothing paid after 10/31 would count.

The Internal Revenue Service FOIA-released a Notice to state IRS and anticipated Treasury interpretations of Internal Revenue Code § 403(b)(12) and § 410(b), and of ERISA §§ 202-203. Additional Guidance with Respect to Long-Term, Part-Time Employees, Including Guidance Regarding Application of Section 403(b)(12) to Long-Term, Part-Time Employees under Section 403(b) Plans, Notice 2024-73, 2024-41 or 2024-42 I.R.B. --- (to be published Oct. 7 or 15, 2024), available at https://www.irs.gov/pub/irs-drop/n-24-73.pdf. For an ERISA-governed § 403(b) plan, these interpretation distinguish between a 20-hours exclusion and a student exclusion. The IRS suggests: “The student employee exclusion . . . is . . . based on a classification . . . , rather than on service.” Under that interpretation, ERISA § 202(c) does not command a plan to make an I.R.C. § 3121(b)(10) student eligible to elect deferrals. The Notice remarks: “The Secretary of the Treasury has interpretive authority over sections 202 and 203 of ERISA pursuant to Reorganization Plan No. 4 of 1978[.]”