View the full text of this job opportunity

View the full text of this job opportunity

When is the following rehired employee eligible?

John was hired in 2019 and worked very part time generally speaking, never working 1000 hours... until he did.

The Plan at that time was a Profit Sharing Plan and it was frozen.

John's service history is:

2019 370 hours

2020 111 hours

2021 393 hours

2022 1000 hours (age > 21)

2023 516 hours and Terminated 7/2023.  Because the Plan is frozen John does not enter the Plan, is not a "Participant" even though he completed 1000 hours and min age 21. No account balance, 0% vested.

2024 -0- hours [1st One-Year Break-in-service]

2025 Rehired Dec 2025, 71 hours

TO NOTE: The frozen PSPlan was Amended and Restated effective 1/2024 into a Safe Harbor 401k PSPlan, eligibility is 12 mos / 1000 hours, min age 21. [LTPT eligibility is based on the standard provisions.]

The A&R Plan document provides the new eligibility provisions apply if an Employee is not yet a "Participant" as of the effective date of the change. Further it defines "Participant" as an Employee having satisfied eligibility AND entered the Plan.

[X] This amendment or restatement (or a prior amendment or restatement) modified the eligibility and/or entry date requirements and the prior eligibility and/or entry date conditions continue to apply to the Eligible Employees specified below. If this option is NOT selected, then all Eligible Employees must satisfy the eligibility and entry date conditions set forth above.
        1.   [X]    The modified eligibility and entry date conditions above only apply to Eligible Employees who were not Participants as of the effective date of the modification.

QUESTION: is John eligible and his Entry Date is as of Rehire in December 2025 or must he wait until he completes 1 year/1000 hours (or LTPT elig reqs) and enter per Plan Entry Dates?

Thank you.

View the full text of this job opportunity

View the full text of this job opportunity

View the full text of this job opportunity

View the full text of this job opportunity

Working with a 401k plan that had mistakenly defined 401k compensation as W-2 wages with no exclusions. This of course, resulted in several defects - not enough was withheld from employee earnings because of the improper definition of compensation.  (Payroll team was only withholding from regular wages, OT and bonuses). The plan was amended effective 12/1/25 to exclude several earnings types, including equity income, from compensation.   Additionally, the payroll team would not regularly record W-2 stock transactions as they happened throughout the year.  Many were held until the last payroll and reported in December, even though the transaction occurred in July/August.

As I am going through the process of self-correction, I am left with a couple of questions on how to handle some transactions

1)  If an active employee exercised stock in July of 2025, but it was not reported in payroll until December of 2025 (when the plan was amended to exclude stock comp), would that stock transaction be considered compensation for the 401k plan?  The option was exercised when it would have been considered compensation, but not reported in payroll until later when the transaction would be excluded?

2)  For a terminated employee, similar question.  I believe if payment is made within 2.5 months of termination or by end of year (whichever is later), then the payment is to be considered compensation.  However, do I use the exercise date or the date in which the payment was made in payroll?

Thanks for any help I can get on this one.

, 

View the full text of this job opportunity

Anyone know of a brokerage account solution, no advisor attached, for these types of plans?  I need a solution where we can have it registered to the trustee of a rabbi trust.  In my experience advisors do not like working on these because the opportunity for accumulation is retty low.  So I'm looking for a Fidelity/Charles Schwab type retail account where we can just fill out an application and open the account, no advisor comp.

Anyone know of a solution?

Partner who is Active and not eligible to take an inservice went ahead and rolled over his account to an IRA without informing Plan Administrator. No 1099-R ever issued. (Reason was to get more control over his assets.)

Looks like under Self Correction it needs to be returned to the plan with earnings.

Questions:

Does a 1099-R need to be issued at all for either transaction? The first one was in prior year.

Can a 'Rollover IRA' that holds only this account be re-stated as a Plan account?

View the full text of this job opportunity

View the full text of this job opportunity

The Applicable DOL Reg:

Quote

(1) General rule. For purposes of subtitle A and parts 1 and 4 of subtitle B of title I of ERISA and section 4975 of the Internal Revenue Code only (but without any implication for and may not be relied upon to bar criminal prosecutions under 18 U.S.C. 664), the assets of the plan include amounts (other than union dues) that a participant or beneficiary pays to an employer, or amounts that a participant has withheld from his wages by an employer, for contribution or repayment of a participant loan to the plan, as of the earliest date on which such contributions or repayments can reasonably be segregated from the employer's general assets.

Partners ARE the employer so they have no wages.  You can't withhold something from yourself.

So pretty clear that they are not subject to this.  My question is this: Why can't find anything that says this, like a DOL Notice or an IRS FAQ or an article by a big law firm?  Does anyone have anything to point to?  I know the reg is pretty clear but this can't be the first time the topic has come up as an interesting question.

A Solo 401(k) guy reached out to me.  He deferred $4100 too much.  He is pulling it out with earnings by 4/15.  Does he get a 2025 1099-R for the return of the deferral or is one prepared for 2026 because it was take out in 2026?  (hmmm... did I just answer my own question?)

Plan merged with another plan on 4/1/2026.  How do we report on the 2026 Form 8955-SSA participants who terminated in 2025 whose benefits are being transferred to another plan - code A and C on the same Form?  One option is to inform the ongoing plan to report those individuals as an A.  Looking for suggestions.  Thanks.

I'm sure most of us will recall that the IRS revamped the Form W-4P a few years ago, and the new form became mandatory for folks filing a new or updated withholding form beginning in 2023.  However, it is clear that participants who began receiving payments in 2022 and earlier are not required to make an updated election.  It is my understanding is that, for such a participant, the plan can continue to honor the withholding elections made on a validly submitted prior version of W-4P (unless and until the participant updates their elections using the new form).  I assume this includes flat-dollar only withholding elections.  

Do you folks agree or disagree?

We have a client whose new systems vendor is telling them they cannot continue to honor pre-2023 flat dollar elections.

View the full text of this job opportunity

Client gets a notice from the IRS that Form 945 was not filled out for plan years 2022 and 2024.  As a TPA, we do not do this, their recordkeeper (VOYA) does not do it.  Their tax person advised them to follow up with their "plan administrator" (meaing us) but technically THEY are the plan administrator so someone in their company should have done it.  Why would they not know this.   Anyone else run into this issue?  

Is there an issue with an S-Corp claiming the profit-sharing deduction and filing their return but not actually contributing the profit-sharing until after the tax return has been filed? Could this be applied to other areas, such as an individual claiming an IRA deduction for the previous year. Filing their taxes but not contributing the money until after their taxes are filed but before the tax deadline?