Bill Presson

Why would you do that?

Just be wary of the top heavy provisions, if applicable

Agreed. Are they considering waiving that requirement for anyone employed on 1/1? I see that sometimes to catch the December people you describe and have it only apply to those hired after 1/1/2024.

If I grasp the meaning here, then it depends on what your termination amendment/resolution says. Ours typically eliminates last day requirement.

Then I don't see the issue here. You're not even having to do an -11g amendment.

Thanks Jak! Happy Holidays! It was so nice seeing you at ASPPA this year.

Correct. Yuck.

If they WANT to be a CG, have their atty use a method to make it happen. That can mean being involved in each other's business or using options, etc. You can force a CG.

https://www.irs.gov/retirement-plans/consequences-to-a-participant-who-makes-excess-annual-salary-deferrals

Going forward, they need to fix the payroll because that's where 402g excess issues are fixed (excluding issues with the participant in two plans) before they happen.

My experience of almost 40 years is that the check date is most often used. Otherwise, the administrative work is a mess.

Agree with @Lou S.. When you have 2 people, the greater of (40% or 2) is 2.

I'm wondering if by "back dating" the op means crediting the deferrals "as of" the correct deposit date so that future earnings are correct.

https://www.asppa-net.org/news/browse-topics/another-erroneous-8955-ssa-notice-issue-and-what-do-about-it Covered in an ASPPA daily email.

Not if they enter under the LTPTE regs.

Well done.

Election form has to be signed by 12/31/2023 and after-tax contributions deposited by 30 days after the end of the plan year to be counted for 415. Obviously can be done within the plan year as well, but deposit deadline is not the tax filing deadline. Not sure what you mean in (2), but the 1099 should be created for the plan year in which the conversion occurs.

For plans that aren't at recordkeepers, the trust for that plan quite often DOES get an EIN to use to identify assets and to use when paying people out for tax deposits and 1099 reporting. With independent paying entities providing distribution services, it's becoming less common but we still use it pretty frequently.

For this to work, the OP would have to completely understand what they're saying and I doubt that would be the case. OP, you need to bite the bullet and hire an ERISA attorney or an experienced TPA to fix the error. This isn't a minor error. It's a big error that potentially involved a lot of tax deductions and you screwed it up by trying to DIY.

And if they don't track hours, there is typically a provision in the plan to allocate hours to those people via an equivalency.

Generally it's real estate or a limited partnership as well. Often it's difficult to hold in an IRA with a regular custodian. I would recommend just finding one of those specialty IRA custodians rather than opening a plan.

I assume you mean 12/31/2023, but yes.

You don't need a 60 day notice, just 30 days for a SH plan and no time frame for a non-safe harbor plan but we try to do 15 days at least. You will need to give notice for starting the SIMPLE. At this point, I would terminate the 401(k) 12/31/2023, pay it out in 2024 and start the SIMPLE 1/1/2024.

When a plan is being terminated due to a sale, there is no requirement for a 30 day notice. I'm pretty sure it's covered in 1.401(k)-3(e)(4) but didn't have time to look and make sure that's the right cite. But it's for a 410(b)(6)(c) transaction.

Correct. There's no requirement of which I'm aware. We have some plans, sponsored by a couple of related, but not controlled, entities and the name is a unique descriptor of the relationship. I've also worked with some that wanted to keep as much anonymity as possible and merely named the plan "401(k) Plan" without anything else. I've never had any pushback from any IRS or DOL person. The one thing I do try to encourage is brevity in the name choice. "and Trust" at the end burns me up.