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mtopalovic

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  1. They are not late yet on the safe harbor contributions, so there have been no communications from participants. It is just a matter at this point to find the funding for it. This was not handled properly by any means and I am trying to assist them in fixing this. The only solution I can see at this point is reaching out to the former shareholders requesting funding and explaining the legal ramifications for not doing so.
  2. No receivable. The company decided that the safe harbor and profit sharing contributions were not going to be paid. I was brought to this client after all of this happened. I would have definitely told them at the outset that you can't just decide not to make safe harbor contributions. I am thinking now about the IRS anti-cutback rules that would probably prevent the company from rescinding safe harbor status for safe harbor contributions that were already accrued.
  3. Client is a dissolved company with 21 shareholders. Safe harbor and profit sharing contributions to 401k plan have not been made yet for 2025. Plan is terminated and all employees/shareholders have rolled over their account balances. The company has no money left. Currently working on reaching out to shareholders to make capital contributions, but many of the former shareholders have gone MIA. I thought of maybe having the termination undone, rescinding the safe harbor status of the plan and conduct testing, in order to get out of the company having to make over $300k in safe harbor contributions, but the recordkeeper confirmed that there are no assets remaining in the plan. Pretty sure you can't undo a termination if there are no assets. Any ideas are welcome.
  4. Client terminated employment and is awaiting his deferred comp payout. Deferred comp plan says that for separation from service, comp will be paid out in installment payments over three years. His employment has already terminated, but the company is in talks with a buyer to do an F reorg. Buyer does not want to assume the deferred comp plan even though it is fully funded. Seller wants the client to take a lump sum, but client does not want a lump sum and the terms of the plan require that his payout be over three years. Because an f reorg is an exchange of stock for equity, is there any way to get the deferred comp plan out of oldco so client can receive installment payments?
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