TH 401k

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?

My plan year end is 12/31/2024 and having Safe Harbor match. One employee is deferred and received the SH Match on pay roll basis. He is terminated in between on 6/25/2024 and withdrawn all the account balance. My doubt is, whether the employee's deferral and SH Match contribution should be included in testing or not for 2024 plan year?. If it is included in the testing and that employee is HCE and having refund, how to proceed with the distribution of excess amount? Already the employee is doesn't have any account balance, then how to proceed the distribution?

As of January 6, 2025, the plan sponsor’s forfeiture account has a balance of $35,000, which includes $25,000 from 2023 and $10,000 from 2024. 1. Is there a deadline for the use of forfeitures? 2. Is the deadline the same for both the 2023 and 2024 balances, or does each year have a separate deadline? 3. If there is a deadline as per IRS regulations, please clarify and provide the relevant regulations. 4. If the forfeitures from 2023 are not used during the 2024 plan year and remain unused at the end of 2025, would this violate any IRS regulations or compliance requirements?

No. The plan document doesn't address it.

My plan has failed the ADP test, resulting in a refund. The HCE receiving the refund has both pre-tax (deferral) and Roth contributions. Is the refund amount discretionary for the employee to choose between pre-tax deferral and Roth contributions, or is there a specific sequential order for deducting it (e.g., first from pre-tax deferrals and then from Roth)? Are there any IRS rules governing the sequential order for processing such refunds?

Hello, I'm currently working in PEP plan. My company A and another participating Employer Company is B. In the mid of the plan year (i.e., 12/31) employee transfer from company B to Company A on 6/20/2023. In the company B for the period of 01/01/2023 to 06/20/2023, he had $90,000 and in company A, he earned $ 100,000 for the period of 06/21/2023 to 12/31/2023. To determine HCE for 2024 plan year, which compensation I have to take to determine HCE? Total compensation ($190,000) or company A compensation?