Lou S.

I will echo the two above me and add. If she takes a deduction for the 401(k) Plan on her tax return then she's covered by a pension plan and would use those rules for determining deductible IRA contributions. Previously Self-Employed individuals deducted "SEP, SIMPLE and Qualified Plan" Contributions on Page 1 of the 1040, for 2018 going forward I believe it is done on a Schedule 1, line 28, attachment to 1040.

Good question. I do not know the answer when 2 unrelated plans are involved. I do know that if it is one single plan where you exceed the limit than it if the employee is an HCE you include the amount in the ADP test, but if the employee is an NHCE you do not include the amount in the ADP test. Because the the excess is due to two unrelated plans my guess is that you include the amount in the ADP test but I do not have a citation to back that up. Perhaps someone else has something more concrete for you.

If the assets are held in Trust and the plan is qualified under 401(a) I don't see how there is no Trustee(s) of the Trust. But may there is something strange I'm missing.

Well are you talking about a DB plan qualified under 401(a) with the assets held in Trust or a non-qualified deferred comp plan with a DB structure for paying benefits? Or is it a fully insured plan using insurance contracts?

No Walter you first need to be a QSLOB and without 50 or more employees in each entity you don't qualify as a QSLOB. These guys have a nice flowchart on if you can qualify as a QSLOB http://www.boutwellfay.com/wp-content/uploads/2017/11/FAQ-What-is-a-QSLOB.pdf But you have a controlled group with 2 employers with 1 and 5 employees that's not going to qualify as a QSLOB.

I've always approached as a 12-31 of year 3 issue. I believe he had previously reach an RBD and is due and RMD but the RMD is only paid to the extent vested which in this case is $0. So in the third year when he reached 3 years of vesting you have to pay the RMD to the extent vested which at some point in year 3 is going to be 100% vested. I don't have a citation for this so if there is a citation that would allow the RMD to be deferred an additional year into year 4 by 4/1 then I'd be happy to shown that I'm wrong.

If the business owner is still employed, what you are trying to do can be accomplished with a simple in-service distribution provision rather than adding the complexity of tracking small regular periodic payments that not everybody is set up to handle.

I think Bird stated it perfectly.

DOL fact sheet may be helpful. I don't know it has any legal authority but it is a nice guideline https://www.dol.gov/whd/regs/compliance/whdfs22.pdf Here is what it says about "On call time"

I will point out that the article is for IRAs. Plans can be a bit different. I think you have an operational failure that you can correct under VCP (not sure if this one is eligible for self correction). If the participant filed without the 5329, I would assume they would need an amended tax return.

I am not aware of any way for him to legally forfeit his benefits.

Maybe I'm confused but is it possible the new trust agreement was simply a plan amendment? If that's the case you probably have a late SMM if the participants haven't been notified of the change.

Re-run the payroll?

Sounds right Bagwell.

I'd assume you could use "banking purposes" amd as Mike points out you should be able set up the plan without receiving an EIN. We typically put "Applied For" in the EIN field if it is asked for. Also you "probably" won't need the EIN until you have to file the 5500 when assets exceed $250K.

You can apply for an EIN as a sole-proprietor and list the reason as "started retirement plan"

I think you can self correct this with a retro active amendment.

Unless the IRS deems it a disguised CODA on the ER contribution then the rule about match being counted as part of the 402(g) limit went out the window for self-employed in 1998 if my memory is correct.

Yeah sometime ambiguity in the question makes it tough. I'm sure I've been guilty of doing that a time or two myself. But I have had clients ask if they could make a ROTH Profit Sharing contribution so they didn't have to pay taxes on it only to have to tell, them no it doesn't work like that, if only it were so easy.

I don't think that's what she meant, though I could be wrong. I could be wrong but I think the question was could profit sharing only plans have in-plan ROTH conversions of assets without allowing employee deferrals. And the answer to that as has been stated is NO.

I'm with golfing in that you have a short plan year and somewhere in your document this is probably addressed.

Your plan is effective 10.1.18 and your first plan year is 10.1.18 0 12.31.18 correct? If so my understanding is you have to have to pro-rate 401(a)(17) compensation limit and 415(c) limit for your 3/12th plan year. If your plan year is 10.1 - 12.31 you would look at compensation paid in the plan year. so comp form 10/1 - 12/31.

Distributions will have to continue after death.

How big is the Plan? Amend it now and make a list of everyone with 3 years but less than 6 at the time of the amendment. Make sure you preserve the pre-amendment vesting schedule for that group. In all likelyhood if the plan isn't going to be top-heavy until "a few more years" that group will already have 6 years of vesting and be 100% vested and the TH schedule won't matter for them.

While not directly related to your question, if you left 6 months ago and intended to move to an IRA why didn't you do that 6 months ago when you left? That said if they have proof they sent out the e-mail on 10/26/18 it's unlikely you'll be able to show you had damages. I would suggest finding out when the blackout period ends and rolling your money to an IRA at that point. But as Larry suggests if you feel you've been adversely harmed, contact an ERISA lawyer to determine if you have a claim against the Plan.