Lou S.

If it's definitely determinable and passed 414(s) testing I don't see a problem. So as long as you have "Base Compensation" defined and trackable you should be fine.

An RMD for the husband's IRA value as of 12/31/2021 is required for 2022. IRAs are not my area of expertise but since the IRA was still in the husband's name as of 12/31/2021 the RMD rules for those assets as I understand it would follow the RMD rules for a deceased IRA owner who was in RMD pay status at time of death. If the surviving spouse has other IRA assets as of 12/31/2021 she would need to take a 2022 RMD from those assets based on the regular RMD rules for her. Since she elected to treat the IRA assets as her own I think it gets easier for 2023 as you can aggregate all her IRA balances as of 12/31/2022 to get the total 2023 RMD number.

You'll need to make the missed safe harbor match along with lost earnings. You need to correct under EPCRS. I'm not sure if you can self correct this failure in the 2 year window or not or if you need a VCP submission. Failure to correct is a plan qualification issue.

Well in your example is there any PS contrib to LLC2 plan? My guess is no. So when you test together LLC1 plan HCE is going to have some non-zero employer allocation rate with all NHCEs in the group having a 0% rate. I don't think that design will pass any of the various IRS testing methods. As Bird says "all depends on how the document is written".

If the Plan allows changes at any time then yes, they can go from 0% to greater than 0% at any time.

Austin, I think it flows from the definition of Employee which is section 1.29 in my cycle 3 Corbel Master Text and reads: "Employee" means any person who is employed by the Employer. The term "Employee" shall also include any person who is an employee of an Affiliated Employer and any Leased Employee deemed to be an Employee as provided in Code §414(n) or (o).

From the 2021 Instructions (page 2) A one-participant plan means a retirement plan (that is, a defined benefit pension plan or a defined contribution profit-sharing or money purchase pension plan), other than an Employee Stock Ownership Plan (ESOP), which: 1. Covers only you (or you and your spouse) and you (or you and your spouse) own the entire business (which may be incorporated or unincorporated); or 2. Covers only one or more partners (or partners and their spouses) in a business partnership (treating 2% shareholder of an S corporation, as defined in IRC §1372(b), as a partner); and 3. Does not provide benefits for anyone except you (or you and your spouse) or one or more partners (or partners and their spouses).

See §1.401(k)-3(h)(4) as long as you meet that you are fine. Money Purchase plans aren't specifically excluded so I don't see why you can't use a Money Purchase Plan.

I would guess the definitive answer would be Treasury Direct. https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm The answer on the website for Trusts and Estates is: "In some cases yes". Corporations, partnerships, other entities: "No"

I Bonds are not available in qualified plans or IRAs.

Prospectively you could change it prospectively but amounts available now under the old rule would have to be grandfathered as eligible for in-service. I bit of pain determining the amount eligible until everyone at the time of the amendment reaches full vesting. At least that's my understanding.

Neither did I. When reading the article more closely it appears reversal is only in the case of excess contribution but it's not worded well. I think they reference "contributing too much either because you exceed the dollar limit of lose your job and don't have enough income". So I'm back to my initial position which is you can't do it unless someone finds some other evidence that I missed. Sorry about that.

I agree with CuseFan. That said I'm not aware of any IRS position that lets someone unwind an IRA contribution because the decided they didn't want to make one after the fact. EDIT From some links on the internet it appears you can unwind an IRA contribution provided you do it in the same taxable year. Here is one link I found that talks about it but you can probably find others if you google "Can IRA Contributions be Reversed" https://finance.zacks.com/can-ira-contributions-reversed-same-year-2098.html

But be careful, is it a short Plan Year say November 1 - December 31, or was it adopted in November retroactive to January 1 and you have a full January 1 - December 31 Plan year?

If it is eligible for rollover then yes you need a Special Tax Notice. So things like annuity payments, hardship distribution, RMD then no. Otherwise for most distributions I can think of, yes. I may be missing some special cases.

Does the document accept rollovers from former employees, some do. Is it silent on the issue. some are. Does it specifically exclude rollovers from former employees, some do. If the document accepts or is silent I think you have pretty good standing to process the rollover into the existing plan that it was sent to. If it excludes I think you are in something of a gray area as he was eligible when the rollover was initiated but not eligible when the rollover was received. What does the Plan Administrator of the old plan want to do?

RTD - your documents should address what happens to related matching funds on refunds.

The RMD is still part of his account balance when he dies, therefore it is payable to his beneficiaries. It is not eligible for rollover as it is still an RMD.

Issue two (2) Form 1099-R. One for the for the excess deferral, and one for the rollover. For example if total Rollover was $100,000 and Excess was $5,000 issue a 1099-R for $95,000 as rollover and another 1099-R as $5,000 excess deferral. Notify the participant that $X.xx ($5,000 in my example) was not eligible for rollover due to excess deferral over 402(g) limit and that he must remove the excess plus any earning from his IRA or it will be subject to penalties each year it remains in the IRA. 6% excess tax IIRC but you can double check that. I believe he must remove it by the due date of his tax return with extensions to avoid the penalty, again you can double check on that. Alternatively you can try to recover the excess from the IRA and then process as excess deferral from the Plan. I think this is the method the IRS would prefer as it's cleaner but is often much harder to accomplish with the participant and IRA custodian.

W-2 wages and Self Employment earning are eligible for wages for pensions contributions. Pass through S-corp earnings are not eligible wages for pensions.

RMD's are not eligible for rollover, ergo are not eligible for conversion/in-plan rollover either.

From the IRS Website https://www.irs.gov/retirement-plans/notice-requirement-for-a-safe-harbor-401k-or-401m-plan General Rule: Generally, the safe harbor notice must be provided within a reasonable period before the beginning of the plan year. The timing requirement is deemed to be satisfied if the notice is provided at least 30 days (and not more than 90 days) before the beginning of each plan year. If the notice is not provided within this time frame, whether the notice is timely depends upon all of the relevant facts and circumstances. If you can document the shorter period is reasonable you would be OK. It could be subject to challenge so the more you could document the steps taken to insure that all participants received the notice and had an effective opportunity to change their deferral elections prior to the next year's first payroll the more likely you will be deemed to have distributed in reasonable time frame before the start of the year. And yes that might be easier to do in a small company than a large one.

You can't defer what you don't make and 401(k) deferral (including catch-up) have to be deferred from your current year income. You can be allocated 100% + catch-up but it requires a combination of having enough deferral to reach at least the catch-up and then employer contributions that push you over 100% of pay but below the 415(c)(1)(A) limit. In your scenario you could defer 100% of your $19,500. You can't defer more than 100% of your income. If the employer then made a $6,500 employer contribution on your behalf than $6,500 of your deferral would be recharacterized as catch-up since it otherwise would put you over the 415(c)(1)(B) limit.

§415(c)(1)(B)

I think it's a election in most pre-approved documents Peter and changing it would not likely take it out of pre-approved status. That said wouldn't the fact that loans still need to be repaid in the original 5 year time frame effectively limit the number of times a loan could be refinanced? I mean I guess it theory you could refinance it as may times as administratively feasible but as Bill Preston so eloquently puts it - yuck.