Bird

Well now that's a confusing question. (My bold - the 8955 and 5500 are different forms.) You should report them as no longer being entitled to benefits on the 8955 for the old plan, and add them on an 8955 for the new plan. I'll assume you didn't mean to say anything about the 5500 itself.

I would have assumed it was an irrevocable election. Not necessarily though. Could the bene and plan sponsor (same person now) override an irrevocable election?

As far as I can tell the repayment is treated as a rollover - more precisely, a trustee-to-trustee transfer - and therefore is not a "contribution."

They confirmed that that was their interpretation and referred me to an (unhelpful) IRA website.

That's exactly what I was looking at when I posted. I assumed that was allowable; maybe I'll ask them.

When was the deposit made (2020 or 2021)?

W-2 income from another employer should not affect your employer contributions to your own 401(k). Please provide more info.

What Lou S. said. It sounds to me like the code is wrong but it's hard to tell for sure...based on the fact that they reported it as taxable in 2020 you should have deducted it in 2019 (otherwise you get taxed but never got a deduction), but again, we don't know the full story. Next time, save yourself a big ol' headache and leave it in and count it for the year deposited.

Again - the PC has the money. The idea of reimbursing makes no sense when it already has the money. I suspect you are asking: "Can the PC "count" PPP money it received after already making a contribution as going towards said contribution?" Is that right?

Or the plan simply says NRA = 65 without a years of participation requirement. And, correct me if I'm wrong, but I think participants have to be employed at NRA to get full vesting; i.e. they can't simply delay the distribution and become vested when they reach NRA if not employed. Anyway, I see the idea of changing NRA to be more in line with SSRA to be a non-starter.

I don't know about their ESOP docs but Fort William* does a great job with everything else. Their customer service is superb. *No "s"/not Fort "Williams." We're in a detail-oriented business and that's a detail. Yes they are owned by Wolters Kluwer. Customer service was not affected one bit by the acquisition some time ago.

You can fund the SEP for 2020 and establish the SIMPLE for 2021. No need to terminate the SEP; I'm not sure that has meaning. Just don't fund it going forward.

It might be helpful to know more about this situation. Like, what kind of entity is it, and is there a change that is driving this? In any event, it sounds like this is or will be a self-employed person, and you might want to read the definition of W-2 comp in the plan document. (It will include self-employment income. "W-2 compensation" does not mean you literally have to get the number off of a W-2.)

Who got the PPP money and who is reimbursing whom for what? Maybe it's me but this is confusing.

I agree with other posters - this is not that difficult. We are a tiny shop with tiny clients and have done it. I don't think I would create two separate plans and then try to cram them into one "plan" at the recordkeeper.

I don't think anyone would have concerns about the company deciding, through plan terms, that certain participants, especially HCEs, do not get contributions. That's a completely different ballgame from having the participants themselves decide whether or not they get contributions.

That sounds a lot like a cash or deferred arrangement to me, although I guess they don't get cash if they don't get a plan contribution, at least not directly. But basically these employees get to decide whether to get a contribution or not. I'd do it another way...like amend it to a profit sharing plan. We haven't used MP plans for maybe 20 years.

I was getting that warning - not actually an error - and it was more of a suggestion (unwanted!) that an EZ might be appropriate. Their support is superb and I am genuinely surprised - shocked - that an actual person would give that response; I'd guess they didn't understand the circumstances or you misunderstood their response.

That is fairly accurate, although I'm not sure what the last clause says... ...and that's where your argument breaks down. Catchups are determined when exceeding any one of several limits (or testing failures), including 415 - not just 402(g). A participant can make a $6500 contribution and have it all be catchup if employer contributions = $57,000.

Yes

That's a tough situation, but the good news is that you are probably more valuable. Good luck.

Yes, apparently has been ok for some time; we just started a few months ago.

(screaming) who was handling this in the past - the client, a CPA, or I hope not a TPA?!

Congratulations and best wishes! If your name was on a post I paid attention.

The terminating plan is a money purchase plan. Would you advocate forced rollovers from a DB plan to a 401(k)?