BG5150

Note: the file title is "New Comp Grid", but it has nothing to do with New Comparability, LOL. It's just that this one replaced my older version. The last one I had I lifted from the EOB maybe 15 years ago.

FWIW, here is the comp grid from the EOB. I only changed the header columns. Everything else was cut and pasted. Even the hyperlinks came through. All rights reserved by the copyright holders of the current editions of the ERISA Outline Book.New Comp Grid.xlsx

I'm thinking that if eliminating hardship withdrawals was a problem, we would have heard stories about sponsors running afoul of the rule.

The ERISA Outline book has a compensation grid that shows what's included in the 3 main comp bases: 415, W2, 3401(a)2. For 3401(a)2, it says "Statutory stock options - grant or exercise; disposition of stock acquired under statutory stock option" is EXCLUDED. But "Nonstatutory stock option includible in income in year granted" and "Nonstatutory stock option - income includible in year of exercise" are INCLUDED.

I was always taught that hardships, like loans, were not protected benefits and can be removed prospectively. I don't remember any conditions about accrued amounts.

Per head as in actives at the end of the year? Actives plus balances? What about people who became active mid year, many even contributed, but left before the end of the year? A good service agreement will spell that out.

For the first time ever, I have an off-calendar, pooled profit sharing plan. PY is 4/1 to 3/31. We need to do some RMDs. No contributions. Only withdrawals and earnings. What val date do I use for the 2026 RMDs? 3/31/25? OR 3/31/2026?

I agree with CuseFan, FWIW

Is there a resource that can tell me how multi employer DC plans differ from single employer plans? A recorded webinar? Other web resources? I have my first true multi employer plan and want to make sure I get it right. (I've had union plans, but they were just plans for the union people of a specific company. Now I have the union's (local) plan.)

I'm not considering Jane. And it's W2 Box 3 income. Per the regs, it's compensation from the 'employer sponsoring the plan'. So I'm only using comp while Jane sponsored the plan in 2025 for the HPI calc.

If a plan is not corrected 12 months after the PYE, then there are two remedies: Distribute the excess to the HCEs AND do a 1-to-1 QNEC to the NHCE. Not allowed to disaggregate. Do a QNEC in an amount to pass to NHCE. Cannot disaggregate. You may wish to consider the cost of both corrections. If I was an HCE and you told me several years later I would have to amend my taxes, I would expect you to shoulder the cost. Was there an ACP failure as well? If so, similar correction methods are available. EPCRS Appendix B. Section 2

2025 plan was sponsored by partnership (taxed as one) January to October. Jane and Wayne Company, LLC. In November, Wayne left, new company Jane, Inc., an s-corp, is new plan sponsor, new tax id. For my 2026 HPIs, do I consider the entirety of 2025 or just Nov & Dec, the months the current Employer was sponsoring the plan? I am using full 2025 comp for my 2025 testing because only the

Wouldn't it be best to ask what changes they made first?

General test for the match?

Does anyone have any good resources on how to correct stuff like this? Changing jobs over the years I've lost what I'm sure was a spot-on webinar on the topic.

Match is SH 100% up to 4%

Plan excludes Holiday bonuses. Owners (the only HCEs) don't take that bonus. Plan is failing 414(s). How do I correct it? (It's been a long time since I had a 414(s) test)

Is it a Safe harbor plan?

Think of it this way. If I have a $50,000 vested balance today and take a $25,000 loan, that leaves me with 50% of my account, $25,000. What if next week the market dips and I'm left with $23,500? My loan is now worth more than 50% of my account (including the loan, of course). Would you see that as a problem? There's no difference if the account goes down by value or distribution.

If it came out of the paycheck and not remitted to the trust, you have late deposits. There's nothing in the regs (that I see) that would exclude an HCE or even owner from the rules.

Did the owner get paychecks? Were the amounts actually withheld from a paycheck? If so, then I think you have to look at DOL Fiduciary breach rules. The company will owe earnings to the owner plus maybe a penalty tax.

I agree. Discretionary match (for the purposes of ACP Safe Harbor) is limited to BOTH No match on deferrals greater than 6% of comp AND The disc. match can total no more than 4% of comp.

Rule says later of 2 1/2 months after term or Plan Year end.

I never get this right. Partic termed 12/27/2025. Got commission check 2/12/2026. Plan includes post severance. So do I include the comp in '25 or '26?

I have a question on this: the formulae uses "average annual compensation" (per ERISApedia). Do we just use plan year comp for a DC plan? Often I have no idea what average comp has been if this is our first or second (or even third) year doing the calcs And where do I get the "permitted disparity rate"?