TH 401k

Yes. Client amendment the adoption to include SH Match to avoid TH Minimum. But, at the end it is required to provide TH Minimum contribution. At this point, is there any way to avoid TH Minimum in other allowable way.

My plan is top heavy for 2024 plan year. Top heavy minimum is required for current year. However in the mid of the current plan year i.e., on 06/01/2024, plan amended to opt for SH Match contribution (My understanding is that plan is subjected to both ADP & ACP because mid year inclusion of SH contribution). In this case, I think TH minimum is required for non key employees. There is no compensation exclusion in the plan. 1. If there is DOP comp is excluded, how to handle this scenario. 2. If the plan is opted SH provision, it is exempted from TH minimum if it is had SH at the end of the plan year. 3. TH Minimum is exempted whether plan having either SH Match or SH Non elective with no other Employer contribution. I'm curious to here any other points or opinions. If there, it is helpful by providing provision code or IRS documents which it is explaining.

The attached image is sample. I'm doing compliance Testing for xyz 401k plan and under safe harbor non elective, 3% SHNE is selected along with the comment mentioned under other plan that xyz ESOP plan name. However, I'm confused whether I have to allocate 3 percent SHNE for employees in my xyz 401k plan or else it denotes ESOP plan. Is there any IRS provision or regulations which is giving clear definition for this section in adoption agreement. What is the next to whether to allocate SHNE in 401k plan or ESOP plan. ESOP in doing by another. Here by taking assumption I'm completing the plan that the plan is not top heavy and there is non of them exceeding the annual addition.

But here"Does the plan satisfy the coverage and nondiscrimination tests of Code sections 410(b) and 401(a)(4) by combining this plan with any other plans under the permissive aggregation rules?" it is not mentioned 401k deferral (ADP) and 401m (Match). My understanding is it denotes coverage as 410b and 401a4 in case of failure of coverage and corrective measures for coverage by taking ABT. Is it correct? If you think otherwise, share your thoughts on my comments.

I'm working on Form 5500-SF and come up with one clarification. My plan fails coverage test and ABT and passing by combining another plan with my plan and passes coverage. In this scenario, whether I have to check yes for "Does the plan satisfy the coverage and nondiscrimination tests of Code sections 410(b) and 401(a)(4) by combining this plan with any other plans under the permissive aggregation rules?". Another plan combining both ADP ACP and 401(a)(4) with another plan. Whether I have to check Yes for this scenario for 14a. Is possible explain what is the difference between these two scenarios and give me link of documents which explains this scenario. Thanks in advance!!

Yes. Thank you!!! If possible clarify the below points "My senior recently explained the concepts of aggregate and permissive disaggregation method. If the coverage test is performed under permissive disaggregation, all non-discrimination tests should also be performed under permissive disaggregation. If the coverage test passes in aggregated method but fails under permissive disaggregation, and the ADP/ACP pass under permissive disaggregation but fail under the aggregated method, it is acceptable to proceed the ADP/ACP tests under permissive disaggregation and the coverage test under the aggregate method. He mentioned that there is no need to perform the coverage test under permissive disaggregation because we have performed the ADP/ACP tests under permissive disaggregation. In this case, we can simply pass the test by performing the coverage test using the aggregate method."

Yes. average benefits test also fails. Is it not permissible to use different method for different non discrimination test (i.e., Permissive disaggregation for ADP ACP and Non disaggregated for coverage test). Can yo advise what is the best way to make all non discrimination test pass.

Yes. permissive disaggregation of otherwise excludable employees. If I take in ADP in non-disaggregated, the plan fails but if I take ADP in permissive disaggregation it pass. However my coverage test fails in permissive disaggregation. Whether I can take ADP ACP in permissive disaggregation and coverage test in non-disaggregated.

In prior year, ADP ACP Non-discrimination test and coverage test is taken in disaggregate method. I have taken both coverage and ADP ACP test disaggregate method. However, my ADP ACP is passes in disaggregate but coverage is failed in disaggregate. But the coverage is passes in aggregate method. As per my understanding, it is not permissible to change the method of ADP ACP testing from disaggregate to aggregate because the plan follows prior year Testing Method. Is it permissible to take coverage test in aggregate method to make the test pass. Is there any provision in IRC regarding this scenario. Thanks in advance!!!

Recently I have faced below scenarios and I don't have much clarity on it. Did anyone explain it for me?? My plan doesn't not excluding Union employees and having both union and non union employees. At the same there is few employees who is union is satisfied the LTPT eligibility. Whether these LTPT Employees is included in Union ADP Test or treat them as excluded and not to include in Union ADP test?

Thank you so much for your response and the information. I understand, and I appreciate your time

Thanks for your detailed explanation!!! Is the employee is eligible to receive Employer contribution (SH, Match or PS). If possible, explain how to proceed, what are the documents required, what are the IRS provisions to meet, etc.

My plan is having 21 Age, 1 YOS and quarterly entry. PYE - 12/31/20224. One employee hired on 2020 and not completed 1000 hours on anniversary period and from 2021 to 2023, not having 1000 hours in any of the plan year, but having more than 500 hours in each plan year. He is not a part time employee. Whether we can make him as eligible employee based on LTPT rule?

I have a doubt in 410b report. My plan doesn't not have allocation condition for profit sharing contribution, and employee terminated with less than 500 hours inactive (i.e., current year terminated employees). Whether these employees (HCE or NHCE) should comes under "Terms with 500 or less hours of service" in excludable employee section or these employees is Non- Excludable employees. 1. If possible explain me with allocation condition, last day rule with 500 hours 2. Only 500 hours allocation condition.

SH match with employer match with allocation condition and one NHCE is having deferral and SH Match but withdrawn all account balance before the end of plan year. Whether that contribution should be included in testing for 2024 plan year?