BG5150

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?

I would say you combine the comps.

Is comp for full year, or only considered when a participant. The doc should address that, at least.

Well, you would have to send a form, as it's probably under the cashout. Also, since it's under $200 you don't even have to withhold! Keep copies in the plan file of everything and move on.

Send a check for $40 to the former EE and $10 to the IRS and send the proper 1099 for 2018?

Reopen the account?

Thanks, chc. I forgot about that.

Why do we need to be concerned with a former employee being highly compensated?

Why file an EZ if under 250,000? You could always file a 5500-SF using the owner-only questions, which are pretty much the same as the EZ questions. They you don't have to worry about corp or partnership or whatever. PLUS, you get the added benefit of knowing the govn't received it. (with a potential downside that the form now is open tot he public)

Right. B/C there would be a zero balance on 12/31/17.

Could someone take a 99.9% partial withdrawal?