Inquiring Mind

Thanks Bill. That was my stance as well. I'll pass this along.

Hello, We're having a differing of opinion in our office on this. We're taking over a plan in existence since 2011. We are mirroring their prior document. The client didn't sign our doc by the 2024 plan year. 1) Should we just use the prior document to administer the 2024 plan year and create our document for 2025? or, 2) Can we still prepare our document for the 2024 plan year even though it won't be signed by the Plan Sponsor until 2025? Again, no changes being made, just a mirror image of the prior document. I appreciate all responses.

Can a plan be changed mid-year to have the safe harbor match allocated/calculated on a payroll basis versus what their plan currently has, the last day of the plan year? I have a client that does not want to true-up the sh match at year end.

I don't think you guys are understanding my question. I have already retested the ADP using gross compensation. It fails slightly but not too bad. The employer did not let their employees defer on bonuses. This is ok as long as they can pass the 414(s) test, which they are not passing. I can't go back and change this to gross since that is not what actually happened. I think the employer has to make up for the "missed deferrals" that were not allowed on the bonuses. Has anyone run into this situation before?

I have a plan failing the 414(s) Compensation Test. They only have deferrals and I am already assuming a 3% De Minimis percentage. I'm not sure how to correct this since it's not affecting employer contributions. Would the employer be responsible for "missed deferrals" on the bonus amounts? Or, if the plan passes the Average Benefit Percentage test will it be deemed to pass? I'm seeing both options on-line. We don't have any resource sites or materials in our office to rely on. Any help/guidance you can provide would be greatly appreciated.

Hello, we have a plan where 3 NHCEs were brought into the plan early. They met the age and service requirement, but were allowed to defer prior to their entry date. I have done a corrective amendment in the past by naming the individual being brought in early. I thought there may be a better way to write the amendment to bring in multiple employees. Does anyone have a sample amendment I could use or any ideas? Also, do you specify the Rev. Proc. or Regulation # in your corrective amendments?

I believe you do need to consider the ownership of both if they have children under 21 per the stock attribution rules. If they do, I think they would be a controlled group.

It's rental income.

I'm trying to search this topic on-line and not finding much. Don't deposits coming in from a Real Estate LLC investment count as contributions in a 401(k) plan? If not, how would they be identified as?