D Lewis

We took over a plan in 2023 that was coming out of a MEP. I wasn't involved in the conversion but I'm not sure I would have known better than who handled it since I don't have experience with MEPs. This plan was an individual plan that went to the MEP in 2022. They then went back to an individual plan in 2023 with us. When we wrote the new individual plan in 2023 we thought it was a restatement of the 1st plan and not a new plan - that the MEP was part of the continuation. The first plan was plan #001 and our restated plan was #001. The prior TPA never filed a 2022 5500SF for the original plan as they thought the MEP was taking care of 2022. The client got correspondence from the IRS about the missing 2022 5500SF for #001. Meanwhile, before that correspondence was received we had filed a 2023 and 2024 5500SF for the post MEP plan using #001. We have since redone the post MEP plan document to be a new plan established in 2023 with plan number 003. We filed a final short plan year 2022 5500SF for 001 using the DFVC program. We now need to amend the 2023 and 2024 filings that were done under 001 to file under 003. I think we just do that and expect correspondence since I believe the DOL/IRS system goes by EIN and plan number. We will likely get correspondence that the amended 2023 and 2024 are late. Do we just let this happen and then explain when the correspondence comes? Is this all correct thinking or should it be done another way?

Thank you so much

We had a plan with 4 sponsors - a controlled group. In 2025 2 of the sponsor's participants were spun off to a new plan in anticipation of those 2 sponsor being sold in 2026 and no longer being a controlled group. We were told to make sure the new plan for the spin off had the same effective date at the original plan so that it was clear it was a continuation and not a new plan that would be subject to the auto enrollment rules. For the first 5500 for 2025, for the plan's effective date, do I use the original plan's effective date from a prior year with a full plan year - or the date of the spin off and show it as a short 1st year?

Thank you both

We have a pooled plan that we just found out the sponsor did not deposit the 2024 safe harbor contribution. I believe we have until 12/31/2026 to correct this error, but the sponsor must put in in lost earnings from 12/31/2025. I've calculated the year to date earnings on the trust to be 0.88% which is lower than the DOL VFCP calculator. Can I use the actual rate or do we have to use the higher of the actual or the DOL calculator?

Thank you again

Thank you so much. I think they are not being precise with their terminology to me, so I apologize if I didn't frame things correctly. Do we have to understand who owns the PE, or just how much the PE owns of the advisory business and possibly the attest business?

We have an CPA firm - an LLC taxed as a partnership with about 80 participants. I've been informed that they are selling an equity interest in the the company to a private equity firm. It's a practice referred to as an Alternate Practice Structure "APS". I've asked a lot of questions and a lot of the answers don't make sense to me. I've never dealt with this before, so I don't know what I don't know. I'm guessing they need an ERISA attorney, but I wanted to see if anyone here can shed some light for me so I at least know the right questions to ask. "As part of the APS a new legal entity will be formed to separate our attest and advisory functions. Our current named insured will be the "attest firm" owned by the current partner CPAs. and a newly formed entity will be the non attest entity. There will be a management agreement between these two entities that explains how the non attest entity will provide administrative services such as back-office staff, IT, insurance, employee benefits and office space for the attest firm. All individuals employed by the company today, CPAs and non CPAs will be employees of the attest entity." They confused me by later saying both the existing firm and the new "Attest" firm will be a subsidiary of a holding company. They have yet to tell me who owns the holding company and it doesn't make sense if they partners are still owners yet they are a subsidiary. On a follow up they told me: "Present day All employees are employed by current LLC. The 401k arrangement is tied to current LLC. New Advisory firm is an entity that currently exists today. New Advisory does not have any employees. Current LLC and New Advisory are subsidiaries of the same holding company. At transaction close, Current LLC will move to an Alternative Practice Structure. The APS model is a well-established framework in the industry and enables external investment from private equity into CPA firms. It will look something like this: Current LLC and New Advisory will continue to exist with the same names and EINs. Current LLC will move out from under the holding company and become a standalone entity. Over time, the employees will migrate from current LLC to new Advisory. It could happen all at once, but we aren't sure. Current LLC will have some CPAs as employees, but those individuals will also be employed and paid by New Advisory. We do not expect a change to the census / participation as a result of this change. There will be a management agreement between Current LLC and New Advisory whereas new Advisory will be responsible for obtaining and managing the employee benefits for all employees. As I mentioned yesterday, we would like the 401k plan to continue through the transaction with no disruption to the employees." Finally they are telling me that other TPAs simply make New Advisory and adopting employer with Current LLC as a controlled group and move on. I don't know if I'm making it more complicated than it is, but something doesn't seem right. Any insights on this would be helpful as I've obviously a novice to this.

Thank you for your responses.

We have an LLC taxed as an S Corp with a PS plan - no 401k feature. 2 year wait with dual entry next. PS only - everyone in their own group. Seven 2025 participants. They haven't made a PS contribution in a number of years but would like to for 2025 (on extension). We just found out that they installed a 401k plan effective 1/1/2024 with their payroll provider (sigh). It has a 3 month wait with 1st of the month entry. EACA with 4% SHM (calced each payroll). It has a discretionary pro rata PS with no allocation conditions. There are 4 additional participants in this plan that do not have 2 YOS. The PS only plan is top heavy. I don't have the 12/31/2024 balances of the 401k plan yet, but I'm assuming it will still be top heavy. They want to maximize a PS contribution the PS only plan for 2025. Can this be done? If so I assume they have to be tested together, but I'm not sure what that looks like. Someone from my organization said the PS formula in the 401k plan supersedes the groups formula in the older plan and we have to use the pro rata formula, but I don't think that is true since they are separate plans. I think the problem is can it be tested with the different eligibility provisions. Since the THM is needed - we can exclude the non statutory participants from the TH I think, but what about those who have over 1 YOS, but not 2? I don't know what I don't know here. I've never had this situation before. They didn't come to us when they decided to install the 401k. Any guidance would be appreciated.

We send a notice that gives them the opportunity to elect the withholding, but it tells them if we don't hear from them by X date, it will be processed with 10% W/H I suppose if I was every up against the deadline we might just process them, but that isn't typical for us.

I knew something was off in my thinking. This is the light bulb moment for me. Thanks everyone.

I'm trying to confirm if the new new law changes the RBD for a non owner participant in a qualified plan that turned 72 in 2022, and retired in 2023. Is his RBD 4/1/2024 for a 2023 RMD under the old rules? Or since he retired in 2023 his RBD 4/1/2025 for for a 2024 RMD? Thanks

We use Ft William and need a csv file for importing. I've been able to open the MM/Empower txt file and save it as a csv and import it into our system. It's been a long time since I worked with Relius so I don't know if you can save or convert the text file to a dat file. I would suggest contacting Relius support and/or Empower for the solution. There must be one.

Thanks for your comments. We didn't think there was a way around it - just wanted to see what others thought.