kimso

So if they are indeed employees, can they be excluded as a Class "Associates"? Would this specific "Associate" be able to excluded mid year?

SH 3% plan. No excluded classes of EEs. Company is a med practice and I just found out that they have contractors ("Associates") that are paid via W-2. There is one Associate who has met initial eligibility and has been given the Safe Harbor contribution, and for whatever reason, doesn't want to be a part of the plan, including the Safe Harbor contributions. EE is not deferring. What are some of the options? Client doesn't think EE will want to switch to 1099. Client is OK with amending document to add an exclusion, but would this be able to stop the current EE from receiving any future contributions? It is only 1 EE who will be HCE for 2026. If so, would this amendment be allowed, say 8/1?

I keep overthinking this because I've heard two different answers. Thoughts on if this is a controlled group? Comp A - husband A 51%, wife A 49% Comp B - husband A 24%, wife A 26%, husband B 24%, wife B 26%

Had a potential client come to us who found out their 5500s were never filed for 2020 and 2021 because they say they never had reminders or communications from ADP. They immediately filed them when they found out in September 2024, but did not file thru DFVCP. They then received notice CP 283. It is a small plan and those penalties are hefty, so they are looking to see how they can reduce. I checked EFAST and I don't see filings for two other years, and late filings (by a couple of weeks) for two additional years but unsure if they ever received notices regarding that. 1) Is it even possible to refile 2020 and 2021 through DFVCP? 2) The reasons for being late are typical from COVID - anyone have any success with penalty abatement?

Participant was hired in 2018 and was participating in 401k plan. He terminated in 2020, and then was rehired 2 years later in 2022. Since his rehire, he has been working on an as-needed basis. He receives a W-2 and is on payroll when working (not a 1099 employee). He took a full distribution from his account, even though he technically will still work on an as needed basis. Would he have been inelgiible to take his distribution? He wasn't working when he took it and he is not 59 1/2, so it couldn't be considered an ISW. Just curious if technically they could consider him terminated, and then rehired when he works?

No. None are HCEs.

Newbie here. I have a plan that excludes a class of employees in the plan document, but one of the employees of this class was allowed to defer during the plan year. What is the best corrective action - distribute the deferrals? Or is there anything else that can be done? Can't fix payroll since this is from last calendar year. There were also a few employees that did not meet any of the eligibility requirements that were allowed to defer. Can we do a retroactive amendment to let them in? If that is ok, would that be an issue with the employee above who is considered excluded?