BG5150

If the provisions and investments are the same, just transfer them from one plan to another. Make a note in the file and move on. The W2 will be correct. Just remember to decrease his contribs in Plan A and increase them in Plan B when you are doing your testing.

Good point.

I think the context of 'after-tax' there is the 'old school' Voluntary After Tax, the stuff that's included in the ACP test, not after tax Roth. I believe it is an administrative procedure (or it is doc-related?) to determine which goes first: pre-tax, Roth or pro-rate between the two. Or is that just for ADP refunds.

I think the 415 corrections are in EPCRS.

It's not too late to correct 2025. They just owe a penalty tax.

If they deducted the deferrals on their taxes, it was not reported as cash income. And even though it didn't come out of a paycheck, I think that it's a parallel idea. So I believe that it's a late deposit and should be corrected via the DOL VFCP.(It's so nice and easy now.)

@AlbanyConsultant beat me to it.

Is this a missed deferral opportunity? Or a late deposit? Did the partners take a deduction other taxes for the deferrals?

I don't think you have a year and a half after you find out about the error to use an 11-g amendment. If you do, they then need to amend 11-g.

Deferrals are 3 month wait, but SHM is one year. But are they still subject to the TH even though everyone in the plan has been eligible for SHM since 2020? (No new EEs in the interim.)

I didn't even realize 5 yr cliff vesting was allowed in 401k plans any more.

Plan has dual eligibility for deferrals and SH Match. I understand that removes the Top Heavy 'pass' plans often get. The Plan has like 10 participants, everyone has been there several years. Plan is 80% TH. Are they subject to the TH minimum every year? Or is it just for years where there is someone new and they are not eligible for the SH Match? (We have since amended the Plan to have the same eligibility for SH as deferrals.)

Actually, I believe the deposit date for a 2024 415 contribution was 10/15/25. Anything after than is considered 415 in the year of deposit. usually not a big deal. Unless there are HCEs maxing PS.

If Remember correctly, the SH must be deposited no later than 12 months after the plan year. So if the PY is 2024, then 12/31/25 was the deadline.

Don't forget, the deposit will be considered 415 contribution for 2026 for the participants. IMHO the DOL calculator should on be used for VFCP filings.

Basically, by 'forfeiting' these funds, the ER is basically taking them for use later for the plan. Either by reducing their own fee obligation or offsetting their contribution obligation or adding to the contribution. Side question: who gets the benefit of the fee(s)? Often there are two fees, one for the TPA to review the transaction and one for the record keeper to process the distribution. If the amount does rise to the Toal of one or both of the fees, who is first in the hierarchy: TPA or R/K?

In this case "OP" stands for 'Original Post' (sometimes it refers to the 'Original Poster').

Where in the plan doc does it say you are allowed to forfeit the funds instead of paying them out (even if it's all going to fees)? Why should the employer get use of those vested funds?

Side note: Is this a really big plan? $100k in forfs seems like a lot. Disclosure: I deal with mostly small(er) plans.

No need for a(4) testing as the integrated formula is a design-based safe harbor.

Ask your document provider. That's what their help desk is for. I rely on ours a lot.

That's what I thought. Bur I also read something about if the plan has a discretionary match or something... Where's a good place to see all these rules in one place?

Are there any good resources on adding Safe Harbor to a plan mid-year (now)? I was trying to wad through the EOB and ERISApedia, but I didn't find anything right away. I figured someone here may know where the (current, updated) timing rules are, thus saving me some time and effort... Thanks in advance...

My view, and non-reply, are because I only have a handful of Fidelity clients. (Side note: I'm not a big fan of their product. I find the website clunky and their insistence on using their own document off-putting. Maybe it's only in the products we are servicing and other Fidelity lines are more user friendly?) [edited for poor spelling and punctuation..]

Question: A participant of a company dies, and their life insurance premiums have been paid by employer contributions. The life insurance company can only make the check out to "The Trustee of the ABC Company 401K." Can the employer deposit the check to trust at the record keeper and, from there, allocate the funds to the deceased participant account? Or how else does this get done? I have very little experience with life insurance contracts in 401(k) plans, and this might be the first time I've ever had one pay out.