Is a plan amendment required prior to 1/1/2026, or does this just fall under the general SECURE/2.0 amendment deadlines - in other words, it can be handled operationally as long as amended by the deadline? Recognizing, of course, that notification will need to be given to the HPI's as well as participants who will now have a Roth option if they didn't have it before, etc...

Bleah.

Deferrals/SH: age 21, 2 months, quarterly entry

PSC: age 21, 1 YOS, Immediate entry

both SH and PSC exclude pre-entry compensation

if an employee who became eligible for def/SH on 7/1/2024 with a pre-entry compensation. since he is entitled to SH, then he needs to get GW min. we use 5% GW test method which allows us exclude pre-entry compensation. can I use the SH post entry compensation for GW min calculation in this case? or we have to use full year compensation for GW since the post entry comp is for SH but not PSC?

thanks in advance

Plan is a 401k PSP pooled account. The trustee and her spoiuse both took out 2 loans a piece and defaulted on both of them. One in 2022 and one in 2023. Their CPA issued the appropriate 1099s.  There is a zero balance showing for their loans.  They want to pay the balances off. Can they do that?  Plan doc says the following:   TYIA! 

There must be some website where I can download the APRs for cross-testing, right?  There should be tables for each mortality table and different interest rates. I know I can export them one at a time out of Relius but I am assuming some website has them somewhere?

Hi all,

I'd love to hear your opinions on this, because I've had a bear of time trying to find an explicit citation that addresses my thoughts one way or the other.

I have a 401(k) Plan with the following eligibility conditions: deferrals & SHNE, Age 21 & 6 months, immediate entry upon eligibility, profit sharing, Age 21 & 1 Year of Service, entry 1/1 & 7/1.

The Plan document reads "For allocation purposes of the 5% Gateway Contribution described under (A) of subsection (iii) above, 415 Compensation shall be determined for the Plan Year (rather than the Limitation Year) but shall exclude 415 Compensation paid while an Employee is not a Participant in the Plan." (It's a Relius document.)

I have 3 individuals who were participants in the deferral and SHNE components of the Plan for the entire year, but entered the PS component on 7/1, so they have partial year excludable comp for a particular Plan component, but they've received 401(a) contributions the entire year. Is their 5% gateway test compensation based on their post-PS entry compensation or their full year comp?

An additional question boils down to is compensation paid prior to participation in a certain component of the Plan a 414(s) safe harbor exclusion or is it only compensation paid prior to overall Plan participation? Does it matter if two different components which are both 401(a) contributions have different pre-participation compensation amounts?

Even more simple question, can someone point me to where pre-participation comp as a 414(s) safe harbor exclusion originates? I've found lots of articles saying so, but I seem to be reading past the primary source language listing this.

I'm the AP on my ex's FERS.  I believe since I got re-married after age 55, I'm still eligible for the survivor annuity.  That's going off information from the QDRO. However, the gov't won't send me a copy of the Plan until my ex retires (sometime this year). Not sure they can withhold the Plan document, but I got tired of asking.  Also, as an AP on a Pension benefit, I wouldn't waive my right to a survivor benefit unless I was paid a lump sum approximation of the cumulative payments (longevity runs in my family).

Can a participant's enrollment be changed if they failed to inform the employer of a dependent's ineligibility during the special enrollment period?  The participant presented a "nonsuit" to the employer that indicates the participant, as of February 2025,  is no longer proceeding with formally adopting a child.  The participant divorced his spouse in 2024 and the ex-spouse is currently receiving COBRA.  Assuming the nonsuit constitutes a qualifying event, the participant did not present the nonsuit to the employer until after the end of the special enrollment period.  The employer has been made aware that the child is ineligible because he/she is no longer a dependent of the participant.  Coverage by the insurer for the now ineligible dependent can be dropped prospectively; however, can the participant's coverage be also be changed from Employee + Dependent to Employee Only given that he no longer has a dependent?  

What about COBRA?  Who should receive the notice?  The participant or the participant's ex-spouse who is proceeding with adopting the child?   

My firm just took over a plan that missed the PPA restatement & the cycle3. We have completed both restatements now but what do we need to do to correct this? Ours thoughts were that the PPA document needs to be corrected through the VCP and that cycle3 could be corrected through SCP. Can anyone confirm or share their thoughts? There is some varying information out there. 

Company with 2 Partners and 2 employees.   The Partners are the only Participants in Cash Balance Plan.

Partner 1 has accrued a large benefit each year including for 2024.

Partner 2 accrued large benefits through 2023, received a lumpsum benefit of the large benefit in 2023 and did not receive a benefit for 2024.

Does this Plan satisfy 401(a)(26) for 2024?

I worked for Ford for 14 years and have a small pension approx $800.  I have been divorced for 20 years.  And remarried 7 years ago.  The divorce decree specifies the QDRO in it for Ford 401K which was paid out to my ex at the time of divorce, and in the decree it also specifies that the pension benefits should be split 50% with my ex-wife.  She never filed for formal QDRO paperwork for pension as far as I know.  I am eligible to commence my retirement in Nov of 2025.  So I submitted my request.  The plan admin told me that usually it takes 3 days to send paperwork to be signed in, but due to the divorce and to investigate if any QDRO exists, it will take 5 weeks.  

Does Ford GRP go ahead automatically and enforces QDRO for pension per the divorce decree, or do they have to have a QDRO paper filed?  Does anyone know?

Can she go ahead and file for a QDRO now after 20 years?

If the plan admin has a QDRO on file, shouldn't I, been noticed about it?

A client defers $23,500 as Roth in 2025 and will have an employer contribution of $46,500 ($10,500 SH nonelective and $36,000 PS.) Can he elect Roth on a portion of his employer contribution or does it have to be the entire money source for that year?  Example - he might want to have $20,000 of his employer made as Roth.  Seems that should be possible with an election form. I realize the Roth conversion option may be a better and simpler option.  

Thank you,

Tom

Has anyone tried to do the same calculation of VFCP earnings in the DOL website using an excel? I'm trying to create one based on the IRC 6621 Table of Interest Rates, IRS Factors (3-13%) | Leap Year, IRS Factors (14-24%) | Leap Year but I can't seem to get the exact amount. 

Combo plan, top heavy and top heavy provided by DC plan.

DC plan has 3% non-elective SH

DB frozen but a class of employees are excluded. There will be no =accrual for 2025.

The document states TH is provided by DC and nothing else.

What is the TH requirement for 2025? 3%?

We are the plan administrator for a client that sponsors a 401(k) plan with about 30 participants. We do not administer cafeteria plans or anything outside of qualified plans.

I know it is popular for an employer to have a high deductible insurance plan for employees and then also offer HSA to all employees.

Is it possible for just one employee to establish and maintain their own HSA? The employer will not be providing HSAs to employees.

Question:  Is this possible? If so, I would think the employee would need to meet the requirements (be covered by an insurance plan that qualifies as a high deductible policy).

Which IRA custodian does everyone use for force out IRA's?

Employer sponsors a 401(k) Plan. 

Certain (now former) employees form their own P.A.s and sign joinder agreements so they can continue to participate in Employer's 401(k) Plan.

Former employees want to keep their P.A. payroll deferrals semi monthly but actually deposit the maximum contribution via a single check from the PA before the deferrals occur.

Is this a prohibited transaction?

I have searched various websites without much help. The form 5500 site only goes back to 2010. If a Plan was supposed to terminate in the early 2000’s but assets were never brought to $0.00, how do you find this Plan? 

I want to be 100% for this particular client who loves Roth.  I realize the plan could allow for Roth conversion as an option.  But he may prefer to fund his employer contribution as Roth.  I know it accomplishes the same thing but that might feel better to him.  He is a sole proprietor and maximizes deferral and employer at 415.  So I assume he could elect Roth for his safe harbor nonelective and profit sharing.  I know it will be troublesome to have to allow this option for his few employees also.  The plan is not on a record keeping platform so we don't have to worry about any limitation there.  The plan already provides for employee Roth but not the employer Roth of course since that is SECURE 2.0.

Sound ok?  Thanks

Tom

Self-check due to severe brain cramp - so, suppose a plan has eligibility requirements of 3 consecutive months with at least 250 hours. Let's make it easier and say age 21. The plan also excludes part-time employees. Part-time employees are DEFINED as per diem employees - they are not defined by hours.

All the "part time" employees work <1,000 hours in a year.

So, since the LTPT rules do not permit an exclusion category as a "proxy" for avoiding the LTPT rules based on an age or service condition, it would seem that this exclusion class is not valid for avoiding LTPT deferral eligibility if such an employee satisfies the 2 consecutive year/500 -999 hour/age 21 requirements, although it should be ok for employer contributions, subject to testing.

Or, if someone satisfies the "normal" eligibility of 3 months/250 hours, even though they are excluded, do they NEVER become LTPT, because they have satisfied the less stringent normal eligibility requirements? 

What are the options for adding a student loan match now in 2025 to a non-safe harbor calendar year plan? The plan has a payroll period based match. Would the student loan match have to start mid year for example 5/1/25 in order to be payroll based, even though it can be funded annually after 2025. I am thinking if they want to make the student loan match retroactive to 1/1/25 they would need to amend the match formula for all participants - regular deferrals and student loan repayments - to be an annual match and look at compensation and deferrals retro to 1/1/25. IRS Notice 2024-63 indicates the match has to be at the same rate. Thoughts?