I am always second guessing myself.  A 62 YO who is still working wants to roll some of his plan money into an IRA. 

He is older than age 59-1/2. 

Plan is designed with 59-1/2 as the normal retirement age.

No problem here ... right?

Previously we had been using the rates from the Funding Table 2A (Post-ARP/ILJA 25-year segment rates) for our calculations.  This year it was:

Tier 1 - 4.75
Tier 2 - 4.81
Tier 3 - 5.50

However, I believe those rates are no more (or maybe I'm wrong).  What are we supposed to use in their place?

Thanks in advance!

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Joe Smith is a dynamic guy and formed a corporation 40 years ago that acquires and manages apartment buildings. He is the 100% shareholder. They now have over 60 apartment buildings. They collect the rents, pay expenses etc. The corporation has about 50 full time employees.  The corporation (GLP, Inc.) has sponsored a 401(k) plan for about 25 years. Every year they make a 12% of salary contribution to all eligible employees and have for many years.

Joe is also quite the artist and has over 100 sculptures and other pieces of art. To show his art he bought a large 7,000 square foot house and formed a Tax Exempt entity called HSB that owns the property and employs 12 full time employees. It is very popular and gives 3 tours a day 5 days a week. Joe wanted HSB to sponsor the same type of 401(k) plan that GLP has for years. So a 401(k) plan with the same provisions was adopted for HSB 10 years ago and continues today.

I would think GLP and HSB would be related entities as Joe Smith owns 100% of GLP and has control of governance of HSB.

Question: Sometimes employees of GLP become employees of HSB and vice versa. If both entities are considered related, must former employees of GLP be provided full benefit elections if they are right away hired by HSB? Or can their GLP plan benefits simply be transferred to the HSB plan if both entities are considered related? 

Thanks.

Participant requests hardship withdrawal from 401k plan.  No question that request meets requirements for valid hardship withdrawal.  After check is issued participant changes his mind.  He has not received the check and has not cashed it.  Plan sponsor asked administrator to cancel the check and return funds to the plan.  Administrator says "okay - no problem" just need you to sign a hold harmless agreement.  In preliminary research I came across old posts here referencing informal IRS guidance that once the check is issued, the hardship withdrawal cannot be rescinded (based on the constructive receipt doctrine) and the funds may not be returned to the plan (because return of hardship withdrawal funds is not an eligible rollover into the plan)  Can anyone provide a cite or location of this informal guidance or other authority for telling the administrator they are wrong and the funds cannot be put back in the plan?

The plan excludes Union employees for the employer contribution including safe harbor. The plan is opted for safe harbor non elective and HCEs are excluded for the SH Non Elective. The plan has totally 4 HCEs (2 union and 2 non union employees) and 2 NHCEs and both are Union employees. 

None of the employees received the SHNE contribution. Whether the plan is subjected to ADP for union employees and ADP ACP for non union employees if the additional employer match is allocated.

My understanding is the plan is deemed to pass since the exclusion is not discriminate in nature against NHCEs and both of them are not received the contribution. Is there any other opinion on this.

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How valuable do you find tax advisory services as an employee benefit? We're considering introducing a perk that allows employees direct access to a CPA for their personal tax queries and end-of-year filing support, all managed through a familiar platform like Slack/teams/inbox.

I'm particularly interested in insights from those in HR or who manage employee benefits. Have you implemented similar financial wellness programs? What were your experiences and what feedback did you receive from the team?

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The vesting for all existing participants in a profit sharing plan was increased to 100% because it has been many years since the last contribution was made.  The plan hasn't been terminated because the trustee is always optimistic that one day he'll be able to contribute.  My question is, must all new participants also be shown as being 100% vested, or should this happen only after they've been in the plan a few years if no contributions are made (the plan has a 2/20 vesting schedule)?  The document is silent on this.  Thanks in advance for any help.

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If you have a moment on a summer afternoon, I’d welcome your sharing of information and experiences.

For a small-business retirement plan that is not ERISA-governed (because all participants, including eligibles, are self-employed individuals):

Do you know which State’s law governs your client’s plan?

Does your client know which State’s law governs one’s plan?

How often is the governing law not an adoption-agreement choice?

How often does a service provider cause the plan to specify a State law the service provider prefers?

Have you ever seen a situation in which the State law governing the plan matters?

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Having a debate with someone in my office.

For the participant count on the Form 5500, if someone becomes eligible do you include them for the Beginning of the Year count (for Active and Total Participants)?  Or do you not, so the number of participants at the beginning of the year matches the number for the ending of the year of the previous Form 5500?

I know it's minor, just want to make sure.  Thanks!

We have a plan that's suddenly terminating in a few weeks.  One of the participants have an outstanding loan that they want to payoff, prior to taking a distribution.  Does that have to be done prior to the Plan Termination, or can they pay it off via personal check a few weeks after the Plan Termination date?

This is one I haven't run into before.

Thanks in advance!

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Not a 401k expert and the client asked the following:

Calendar 401k plan with 3% NESH and PS provisions, it is combined with a cash balance plan. Plans are top heavy and top heavy is provided under the 401k plan.

Eligibility is age 21/1 year and dual entry

Hiring a new employee on 10/1/2026 and sponsor wants to amend the 401k plan so that the employee can start deferring immediately.

Not amending the CB plan, just the 401k provision.

Does this employee also need to get SH i.e. ADP testing would be an issue if not? Possible top heavy issue too, at least in my opinion. Not providing PS allocation.

Thank you