Lou S.

Not that I'm aware of. There was a provision in the reconciliation bill that I don't believe passed that would have mandated auto ROTH-IRA enrollment with annual escalation for employers with 5+ employees beginning in 2023. Some states, like CA have a mandatory auto IRA enrollment unless you offer a qualified retirement plan. I'm not aware even of a proposed bill had mandatory 401(k), though Secure (that did pass) and Secure 2.0 that has not yet passed both effected or would effect how 401(k) plans will operate going forward.

ESOP guy, it sounds like a collectively bargained multiemployer union plan that they are withdrawing from which is a whole different animal. And there is usually a reason that there is something called multiemployer withdrawal liability and not mulitiemployer withdrawal credit. But I agree with Effen this is probably something they want an attorney familiar with withdrawing from union plans to negotiate any questions concerning the withdrawal with the union and plan.

why not just file a corrected 1099-R with the correct accrued interest and move on? Assuming we are talking about a 2021 deeming of the loan.

Yes.

You could probably do that in administrative procedures. I mean what if they change payroll systems and and "Regular" becomes something else?

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.