TH 401k

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 He is terminated in between on 6/25/2024 and withdrawn all the account balance.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?