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Gilmore last won the day on September 24 2023

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  1. I asked this question once to the great Sal Tripodi. We had a situation in which a bank exec was leaving and paid six months severance on their termination date. Sal concluded that since the compensation was not paid post-severance the compensation should be included.
  2. Thanks Paul. The document we use defaults anything that does not specifically use Elapsed Time as defaulting to the hours of service failsafe. That is why we are advising the few clients that do use the consecutive service option and do not want to follow the Elapsed Time rules to also take into account the LTPT rules.
  3. Meaning, we have a couple of plans that require, for example, "six months of consecutive" service. We have been advising those clients that they are still subject to the LTPT rules since an employee with an irregular work schedule may never have six months of consecutive service, but may work 1000 hours in a computation period. I'm assuming this means they would then also have to apply the LTPT eligibility.
  4. Does that change if the document requires "consecutive months" of service?
  5. All of our One Year of Service plans shift the computation period to the plan year, so for the most part we are dealing with just January 1 entry dates for LTPTs. I'm assuming non-auto enroll plans would still get to use the first 3 months of the plan year to find missed LTPTs and correct without a QNEC? One more reason for clients to get us their census data asap.
  6. What does the document say about who receives the non-elective contribution?
  7. Nope, that was wrong. Sorry about that. Should have left for Thanksgiving break.
  8. Employer would get an EIN; Trust would get a TIN. Is that what Paul was referring to?
  9. I know that you do not need to cover everyone under the automatic-contribution arrangement, but in doing so you lose the benefit of the 6-month testing window if you are otherwise an EACA. So I'm assuming in Nate's example with the Relius doc, if you do not include LTPT in the EACA you would lose the 6-month testing window, even though LTPTs are not part of coverage?
  10. When aggregating for coverage, how "identical" do the plans need to be? Does it matter if the investments options are not the same, for example?
  11. Does Section 125 (d) of SECURE 2.0 limit years counted for vesting to those after 12/31/2020? I see that section has a lot of strike this, and insert this, but everything that I'm finding that says years prior to 2021 are not counted for vesting reference 125(d).
  12. I saw an article in the Newsletter the other day regarding LTPT. The article said (paraphrasing), that in general the IRS has said that all years of service must be taken into account when determining vesting for an LTPT. Wasn't it SECURE 2.0 or some other more recent guidance that allowed 401(k) plans to not count years prior to January 1, 2021 for vesting? Thanks.
  13. "Lost earnings" to me sounds like a late deposit from a prior year corrected in 2022. If they terminated in 2021 and took a full distribution before the end of 2021, and late deposit earnings were made after 1/1/2022, I would not count them in the 1/1/2022 beginning count.
  14. Never used it, but some plans have an option for a "first few weeks" rule. Not sure if that is what they are looking at. That would be in the plan document.
  15. I believe you can set up a safe harbor with a 10/31/2024 year end, and amend to a calendar year plan for 1/1/2025. As long as the first year, the short year (11/1/2024 to 12/31/2024), and the following year are all safe harbor there should be no concern for losing the safe harbor status. This way you can still get in some deferrals for 2023 if that is a goal.
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