Bill Presson

You’ve received plenty of advice above so I’ve got nothing to add to that. But kudos to you for wanting to do right by your ex. That’s not very common in the QDRO messages from regular people.

Have the plan sponsor return the money to the advisory firm and have them reissue a check (or ACH) to the plan.

Just use Penchecks Trust for all the distributions and you don’t have to worry about it.

The one year delay only applies to starting a 401(k) after terminating a different 401(k). Using a 401(k) in the scenario you describe is very common.

Ahh. Didn’t realize you meant two plans with the same sponsor. I’ll be curious to see others thoughts.

Jak, I’m confused about your concern on the look back definition of an HCE. To me, that’s just the standard way of determining an HCE.

I’m not aware of anything they can do treating an ER contribution as Roth that they can’t do by electing a Roth conversion. Unless I hear of some wonderful feature, I’ll continue to have clients do the latter and ignore the former.

Ms Gina, bless your heart and good luck!

Can a plan require 150 hrs in a month? I thought it was limited to 83.33.

I would just pay it all out. Covers the RMD and isn’t a burden from a tax perspective.

Jak, First - it would have to be in the document before the start of the plan year. Second - all depends on the numbers and we didn’t get any. Third - if the owner has w-2 in excess of the comp limit even after the bonus is excluded, the answer is very likely that it would fail.

For the calculation, no. For understanding the calculation and not screwing it up that one year the w-2 IS lower? Yes.

Assuming your post is accurate, the w-2 comp from the s corp is the only earned income for the docs and the person saying otherwise is wrong and needs to start over in pension school.

It’s not safe harbor meaning it eliminates ADP testing. Just means no a4 testing on the profit sharing allocations. The deferrals have no impact on the PS allocation. It will be something like: 1. everyone gets equal percent up to 5.7% on all compensation 2. Then anyone with compensation in excess of the TWB gets 5.7% of that comp that doesn’t exceed the max limit. 3. then any remaining PS money gets allocated pro rata for everyone. this assumes all eligibility and allocation requirements had already been applied.

It is a “safe harbor” allocation meaning there is no a4 testing. The allocation steps will be in the document.