dougmal

We have a plan that was adopted in 2022, but we have elected to treat it as adopted in 2021. We have already file the 2021 Form 5500-SF, including the SB. Now we are working on the 2022 Form 5500-SF, and the instructions for Box D in the 5500-SF instructions and the instructions for the SB both say that we need to check that box and attach the signed 2021 signed SB, with no mention of whether or not the 2021 form 5500 has already been filed. Has anyone here seen any guidance on this? Do we just check it and attach the 2021 SB here per instructions? Or is this only in place for if this is the first filing for the plan? I'll probably play it safe and check the box/attach a copy of the 2021 SB, but this seems counter to the point of the box. Thanks! Doug Fresh

Ceases to be a participant for purposes of contributions. I like that. Unfortunately, our document just says "Such employee will immediately cease to participate in the plan" So it's not super clear on what that means. The employee has an accrued benefit, so they fit the definition of a participant, and there is no distributable event to get them out of the plan, so I think I will just have to assume that they are no longer eligible to accrue additional benefits. I'll leave them as active with an accrual rate of 0%. Thanks!

It feels like that contradicts the document saying that they immediately cease to be a participant. But I just can't think of any other scenario that works, other than continnuing to be a participant with a $0 accrual rate. So anywhere in the document that it refers to "participants" these former NHCE's would be included.

So you would leave them in the plan, but accruing a $0 benefit? Would they be coded as active still? If they're still earning vesting, wouldn't they still technically be a participant?

I have a document that excludes non-key HCE's. My problem is what happens to participants who enter as an NHCE, and then become an HCE is a future year? The document says that if you go from eligible to ineligible that you immediately cease to participate in the plan. What does that mean? Just that you no longer get a benefit? How do I code this person now? Active? Excluded? They still have a benefit due to them, vested or not. I've been trying to research it, but not having much luck. Most other threads that mention going from eligible to ineligible are based on hours and devolves into another discussion entirely. Any help appreciated! Thanks!