Bill Presson

We do a lot of owner only plans. We also charge a lot to correct errors when we take over the plans.

Of course you can do SHNEC each year but you do have to do an amendment. As you note, you can amend to 3% by 11/30. If you want the next year to start off NOT a SH, just include that in the 3% amendment by saying it’s only for XXXX year. So one amendment per year. Now I think that’s a real PITA but it can be done. Participants might not like it so much.

Peter, you would probably run afoul of the 401(a)(26) minimum participation rules.

Does the plan allow for in service distributions at all?

Each Roth conversion in a qualified plan has its own 5 year clock. It does not work like a Roth IRA.

Peter, you think the service agreement allowed the TPA to ignore the regs and documents?

As Peter suggested, the current TPA is wrong.

I’m confused by the 11/1/24 date mentioned for the 5500. What does that mean?

Of course.

We've already gotten one for 2025 plan year. Very odd.

FWIW, I would look to find a new RK.

Can it set the termination date? Possibly according to some. Can it replace the amendment to bring the plan up to date with all the laws/regs? I don’t see how. But get counsel involved.

If you are the alternate payee, YOUR counsel should be preparing the DRO. If not, YOUR counsel should be reviewing the DRO.

If it’s overfunded, why is the money still invested?

I would recommend ERISA counsel immediately. We’ll help with missing restatements but not the lack of actually establishing a plan.