BG5150

With maybe eligible comp to defer from if they want.

I wouldn't. Especially if you know he's going to be an HCE.

Flip a coin: Heads, they're in, tails out.

So, if there were fewer than $250,000 at EOY 2015, then I wouldn't file it. File 2016 as a first return/report.

Why not just file a 2015 AND 2016 form? I would do them on SFs as a one-participant plan. It'll take 5 extra minutes to do the 2015 one. Side note: gotta love that gain! Even with a $60,000 contribution, that's over a $110,000 gain, 137%!

Plan is 3% nonelective Safe Harbor plan. Only SH & deferrals. TH ratio is 80%. Is this plan exempt from Top Heavy?

They are going to release a "Cheaters" edition this fall: https://www.bloomberg.com/news/articles/2018-02-02/there-s-now-a-monopoly-made-specifically-for-cheating

Yes, it looks like the instructions say to use code E for 415 violations.

The only people who have to get a gateway are those already getting an allocation. So, if the commission-only people are excluded, they do not have to get a gateway.

The payroll system directly generates the W2, I would think. Therefore, if the payroll report is incorrect, chances are your W2's aren't right either...

Use the payroll report. I only use the W2 to double check the deferrals and sometimes SSNs.

Chip, I agree with you that it's the PS that is causing the 415 failure. But the correction states that any deferrals are removed first. It doesn't make sense.

Go conservative and let him in? Maybe ask him personally about his past work experience? Just tell him it's to make sure the records straight.

Another new one: Plan year 7/1 to 6/30 PS plan only. no age, 1 YOS (1,000 hrs). Entry date: "last day of the month" ... "nearest to the satisfaction of minimum age and service requirements."

I still think it is a 415 violation and he gets a refund.

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.