BG5150

Did he DEPOSIT the PS already? Otherwise, you just cap his PS at $28,000 (24 + 8 + 28 = 60). If, the formula give him 33,000 and he deposits that, then I think the 415 excess comes first from deferrals. In that case you have a 415 violation, not an excess allocation. What the correction is tell you to do is this: Say someone was supposed to get a 3% PS, but they got 5%. You take the excess 2% (+earns) and move it to a suspense account (not the forfeiture account!). During that time, the ER cannot make any ER (deductible) contributions until the unallocated account is exhausted. And, yes, you CAN use it to offset Safe Harbor. (Remember, this isn't forfeiture money)

If I have a doctor's appointment in Arizona and I live in North Carolina, can I get a hardship for the plane ride? (I hear some good things about the physicians in the south of France....)

If the plan allows indirect rollovers in...

I usually go with the question asked in example 1: on 12/31 ask the person "where do you work"? In the case of the OP, the answer on 12/31 is "not at that company, anyway." Therefore no EOY employment.

True. But I was basing my comment on this: I was assuming she didn't want to pay taxes at all.

Don't forget, she will have to repay the $10,000 withholding, not just the $40,000 check amount.

yes.

Unless your document is an IDP, I would think the $1,000 ceiling for a minimum would be written in already.

Sadly, I would say no, as those are not direct funeral expenses. If airfare/hotel is included, what about the repast?

And this is assuming the HCE has W-2 income and not self-employment compensation.

For 415, the answer is $18,400. You may be further limited to the 25% of compensation for deductibility, depending on how many other participants in the plan and their allocations. Deferrals count toward 415, but do not count as contributions for deductibility.

I've really only used Relius Administration (and a little Omni), so I can only speak to that product. I like it a lot. More expensive than the others. So, I've just added little if any value to this discussion. :(

what are you using now?

I have a plan that has an owner and 2 new participants who entered on 7/1. I'm trying to run a max scenario. Allocation is on particpation comp. Plan is top heavy. Owner comp "only" $110,000. ;) NHCE1 28,000 (full) 14,000 (participation) NHCE2 24,000 & 12,000 What compensation do I use as my 25% ceiling? $162,000 or 136,000?

Don't even put codes. Let the IRS figure it out! ;)

Are there other employees who qualify for the plan?

Can you check with the people who wrote the document? (Not the people who filled out the adoption agreement or whatever, but the VS or Prototype sponsor.)

Yes. Because the people in question were allowed to defer. The ER just deducted the incorrect amount.

...and also no 1099's would have been generated...

I think you have to do #3. #6 is for when you don't let people start deferring at all. If people were deferring from their base pay, then it was the wrong comp used, not an exclusion of an employee.

If you are using Relius, try testing by "Contribution" basis, rather than "Accrual." But, as others have said, you don't even need the general test, because you hve a safe harbor allocation to begin with.

I have a plan where the owner is the only one deferring. 6 staff members. She wants to max out at $54k. Plan is 3% SH with a discretionary match. We are thinking of giving her a 4% match to lower the gateway. Does she have to let the non-deferring staff know that a match is being made to the plan?

Was this for 2017? Could you do an 11-g amendment giving this person a benefit?

Coulda been a loss...

Is it such a chore to file it?