BG5150

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.

Yes. Because the first plan does not pass coverage on its own.

FWIW: I agree.

Why would I mark it 'final'?

They don't know any better? They think they are giving their EEs a fair choice? Bad advice? Or they truly have a valued Employee who, for perhaps religious reasons, do not want to be invested in interest bearing investments? Or, they have Employees who would lose SSI benefits if they get any sort of allocation to the plan?

Two S-corp owners: the only thing on their W2 was the S-Corp Health Insurance. Does that count for plan comp, or do we exclude it and they have zero comp for the year?

Turns out, it may be an S-corp....

We use an FTW doc, and it's an option in the Adoption Agreement. But, has anyone seen any legals cases where, when the plan failed coverage and was forced to include someone who had opted out and the person sued?

Good point.

And I would ask what exactly the DOL told her, and if she could provide some sort of cite. Maybe you could call the DOL and ask.

Does the document allow for (ir)revocable elections to forsake participation?

The instructions for the SF says who may file the form: The instrux go on further to say those who cannot file the SF must file either 5500 or EZ. The plan in question is only 2 people. So it qualifies under the first bullet. It does not say the plan cannot be a one-participant plan. So why can't we just file the SF?

How would they even know?

They are under $250k ($248, lol) But the've filed SF's in the past b/c they had an employee. I'd rather file some form than just skip it and have to deal with that IRS letter. What's the penalty if they file SF and not EZ?

Do they have to? They may hire someone soon. Will there be a problem going between SF to EZ to SF...?

LLC taxed as partnership

If the plan covers a 100% owner and spouse can/should we use code 3B on the 5500-SF?

The affected deposits, +/- earnings should be refunded to participant and reported on a 2026 1099-R. (Code E, I think, EPCRS correction, so no 10% penalty tax will be assessed.)

I agree. Put it into the form account for use by all participants

I thought non-deductible contributions are allowed in the plan. Or is it that there can be, but a 15% excise tax applies (each year it's in the plan)?

The amount of match in a plan is limited by the max comp allowed for the year. In a case of matching 100% of deferrals up to 2% of pay for 2025 would result in a maximum match of $7,000. It doesn't matter what the person's YTD comp is. You apply the match formula per period (in your example) until $7,000 is reached. THEN it stops. Another way to look at is is: Say this person uniformly earned $700,000 in 2025--half thru June and the other half thru the last 6 months: $350k per half year. What if they didn't start deferring until July 1? Are you not going to give them any match at all? That's absurd.