Calavera

Elapsed time means elapsed time. This person will have 1 year and 7 months of vesting service.

Scan 2023 signed SB with all 2023 attachments in one pdf file and attach it as "Other".

Usually having just PS/401k plan at that age is easier and comparable if the current compensation is high enough due to very low 415 benefits at the age of retirement. However, from the legal plan setting up perspective I would recommend NRA 62, ERA 55, benefits unreduced at ERA, expected retirement age for valuation and contribution purposes is whatever clients tell you.

Just file the amended 5500 ASAP attaching the auditor's report. From Form 5500 instruction – “If the required IQPA’s report is not attached to the Form 5500, the filing is subject to rejection as incomplete and penalties may be assessed.“ From DOL EFAST FAQ – “Q25: Will EFAST2 receive my filing if I do not attach the IQPA report to my Form 5500 annual return/report? EFAST2 will receive your filing, but the filing is incomplete without the required IQPA report. An incomplete filing may be subject to further review, correspondence, rejection, and civil penalties. Please note Schedule H, line 3 specifically asks for information regarding the plan’s IQPA report. If you do not submit the required IQPA report, you must still correctly answer these questions. If you have to file Form 5500 without the required IQPA report, correct that error as soon as possible.”

I think for the Line 14 (FTAP) the PFB used to offset MRC should not have any impact. The 5500 Schedule SB instruction doesn't mention any adjustments, and it seems pretty clear. However, for the Line 15 (AFTAP), I would take it into consideration.

The terms “shared interest” and “separate interest” are used a lot in DROs for splitting benefits earned under defined benefit plans but could also apply to defined contribution plans as well. Attorney should be able to help you to answer questions and to draft a DRO. You can find more information here: Qualified Domestic Relations Orders and PBGC | Pension Benefit Guaranty Corporation QDROs The Division of Retirement Benefits Through Qualified Domestic Relations Orders 2020 (dol.gov) FAQs about Qualified Domestic Relations Orders (dol.gov) FAQs Drafting Qualified Domestic Relations Orders (dol.gov)

Just adding for a clarification. If this partnership would have other employees, contributions toward the benefit of these other employees will be deducted on a partnership level, therefore reducing K-1s for partners. As mentioned above, the 2023 net earned compensation will be very low, so we assume that net earned compensations in prior years were high enough to support all 2023 calculations.

Is this a partnership or a corporation? If it is a corporation, K-1 has nothing to do with the contributions. If this is a partnership, K-1 should not be reduced by contributions.

Good point about predecessor employer.

Assuming Joe and Mary are not related, I don't think the offset would apply. Companies are not in a controlled group.

The owner will deduct his/her pension contribution on the Schedule 1 Form 1040 line 16.

I agree.

Unfortunately, this is not correct. Under the current regulations you need to satisfy the 415 limitations on benefits paid and on benefits accrued during the year.

Did participant terminate his employment in 2022 or 2023?

Long time ago I got the same answer from one of the IRS agents when I called them to clarify the word "maintain".

Just want to mention the extra layer of complexity. In absence of suspension of benefits, it is possible that based on the compensation history, this person's benefits crossed the 415 limitation long time ago, and therefore should have started at that time.

For 5500EZ, SB is not attached but should be provided to the client. Does "no SB signed" mean client doesn't have it, or does it mean the prior actuary never did it?

You certainly should check the plan document. The document may specify that after 1 year break-in-service, the eligibility computation period switches back to 12 months from the rehire date.

This may be helpful https://www.asppa.org/sites/asppa.org/files/PDFs/GAC/ASAPs/04-07.pdf https://ferenczylaw.com/article-the-elusive-irc-section-410b6-transition-rule/

Cash balance plans are defined benefit plans. They have to provide a QJSA to a surviving spouse. Any other provisions are optional. I personally haven't seen a cash balance plan with limitations to death benefits. I have seen "standard" defined benefit plans where death benefits were payable to the spouse only, and also where death benefits were payable only to the spouse or to the designated beneficiary.

Or the document may say: no spouse and no beneficiary form - no benefits

It looks like you are using the end of the year valuation date. If the valuation date was not changed in any of the four preceding years, you can change it to the first day of the Plan Year, i.e. 1/1/2022. If it's not enough to get your minimum contribution to $0, see Nate S' comment above.

1. If plan was frozen in 2017, you would use the 2017 limit of $215,000. 2. If the freeze amendment specifically allowed the future $415 limit increases, you will use the current $415 limit. 3. Based on the plan document definition of years of benefit service and years of participation, owner may have 4 years of participation for $415 proration purposes. If none of this helps much, just unfreeze the plan.

I am not sure it matters how plan got frozen. So this person accrued benefits for 5 years, and then plan got frozen. Wouldn't frozen plan satisfy 401(a)(26) automatically?

What was the effective date of the plan?