Lou S.

https://www.irs.gov/retirement-plans/penalties-related-to-the-filing-of-forms-8955-ssa You may not use it and the IRS may not catch it but the penalties for not filing are rather steep and there is no "small plan exception" to filing the form.

Is your plan year 12 months long? If not you have a short plan year. No new business exception that I'm aware of at any rate.

I agree with Bri. Also check the master text for definition of period of service it's probably in there.

You can not offer ROTH to a select group.

I have no idea what those assets are but do they fall under this definition from the 5500-SF instructions?

See instructions for Form 1099-R. On the 2022 instructions it's on page 7 under the heading "Failing the ADP or ACP Test after a Total Distribution" but it's been the same for quite some time, though it may be on different pages of the instructions in earlier years. https://www.irs.gov/pub/irs-pdf/i1099r.pdf

Yes the penalty is from 7/31 even if you had an extension to 10/15. If you know you are filing late file under DFVC for $750 and piece of mind. If it's your client's fault (late data) have them pay, if it's your fault because you are short staffed, consider biting the bullet and paying yourself.

Don't be late?

Someone who is a 5% owner in the current or prior year is an HCE. I don't see an exception for attribution but maybe I'm missing one. Therefore, assuming a calendar year plan. The sister would be HCE for 2022 and 2023 but not 2024.

How important is that the right person have authority over the account?

IRS testings rules limited the deferrals of HCE like you in your Plan to $X. You deferred $Y. You are receiving a refund of $Y-X. IRS requires earnings to be allocated to refunds. Your earnings were Z%. The earnings on your refund is (Y-X) * Z.

Cash Balance Plan freezes all contribution credits and new entrants into the Plan. The Plan is top-heavy. The Plan is covered by the PBGC. The question I have is when it it considered underfunded for the exception to 401(a)(26) to apply? Does the AFTAP have to be less then 100%? If the AFTAP is greater than 100% but assets are less than the sum of the notional accounts is that sufficient to be considered underfunded? If the assets are less than what is required for the Plan to complete a Standard Termination under the PBGC rules is that sufficient? To throw out some hypothetical numbers assume Plan Funding Target (@95% corridor of ARP stabilized rates) $510K Plan Funding Target (@105%corridor of ARP stabilized rates) $490K Plan Assets (MV @ valuation date) $500K Sum of Participant Account Balances $530K PVAB for PBGC Premiums $600K

I'm not a CPA but that's my general understanding. That said what does the Partnership do if the Partner says I'm not making that or I don't have the funds right now? To avoid a Plan Qualification issue if I'm the Partnership I'm pretty sure I'm making that contribution on the partners behalf and working out the financial accounting of "charging back the partner" or whatever the technical accounting term is afterwards if I have to.

Ultimately the Partnership that sponsors the Plan is responsible for making the top-heavy contributions. How they make individual partners come up with the money to fund the contributions for employees and partners would likely be governed by the Partnership Agreements.

Assuming all companies have adopted the plan and the plans definition of compensation is total comp, yes the sum of his comp from all 3 companies is what you would use for allocation compensation, subject to the 401(a)(17) limit.

Qualified Plan Roth money is subject to RMD rules, so yes RMD required. Assuming he meets the 5 year rule it's a qualified distribution so no taxable (and not eligible for rollover) but it needs to leave the Plan. If he has less than 5 years then the gains would be taxable but basis not. Unlike IRAs it's not first in first out, it's ratable. To avoid future RMDs, roll the ROTH potion from the Qualified Plan to the ROTH IRA (after taking this year's RMD) and before December 31.

I've been accused of talking to myself before but in this case no. I was responding to your "first time I..." question.

Why wouldn't you include it? It's part of the on going plan benefit formula. The fact that is was forfeited due to non-vesting is irrelevant to it being accrued in this case. Now if you failed testing and do an -11(g) amendment to pass you have to give a "meaningful benefit" which includes some form of vesting on those corrective accruals/contributions to include that in the testing. I mean think about it is the person terminated January 2, 2022 would you even be thinking about their 0% vested benefit for 2021?

How costly would it be to give 2% annual v 2% per payroll? Then you'd actually be following the terms of Plan B. You don't need to increase to the Plan A 5% for 2021, they were unrelated plans, right? As for retro active amendment if it is cutting anyone's benefit I'd think that would be something that you'd need IRS approval in VCP.

So for 2021 Plan B was doing 2% match per payroll but document says annual discretionary match? Sounds like you may have a possible true up contribution for B for 2021 where you'd deposit to the contribution to the surviving merged Plan A. That is if you do need a true-up, treat it as a receivable as of 12/31/2021 that was transferred to Plan A on January 1/1/2022.

I don't think you have a problem if the new DB Plan saying T-H minimum will be make in PS. The PS T-H minimum is 3% and you are going to give more than that, presumably 5% (and maybe more with gateway). I mean I'd amend the PS plan to conform going forward but I don't think it it would violate the plan rules. However, I don't think it is some thing that has definite guidance from the IRS so what I think is a common sense solution may not agree with the IRS views. I'd have to give some more thought to the second but if safe-harbor 401(k) has to be aggregated with the other plans i think you lose your deemed not top heavy or as I like to call it your "get out of top heavy free card".

I think many small CB plans like to match the deposits to the contribution credits as long and it's in the MRC and max deductible range.

It sounds like you have a safe harbor 401(k) plan with an automatic enrollment feature. I'm not seeing a problem. Am I missing something?

If it's over $5K in a DB or CB plan you couldn't do a rollover, you'd need to buy an annuity based on the Plan's normal form. If the Plan is a terminating non-PBGC DB Plan, see PBGC Form MP-300 and Instructions - Missing Participant Program Plan Information for Small Professional Service DB Plans

From first principles or spitting it out of your actuarial software? Pretty sure I had to do the first one once upon a time for exams but now I just put the relevant Mortality Table and interest rate(s) in my valuation software and it spits out a list of APRs by age. As C.B. Zeller notes you make want to talk to your pension software folks and they should be able to point you in the right direction.