Bill Presson

Tell them how much you'll charge to allocate and distribute a handful of pennies.

The merger documents can provide that the two trusts are effectively merged as of XX date without having to physically combine them. What if you were just changing the name of the trust? No way that happens on the effective date. It happens later, but the document says when it's effective.

The plan has to have entry dates and they are written into the plan. Typically they are the first day of the plan year and six months following (ie 1/1 & 7/1) but can be more frequent. So assume your person was hired 10/10/21. They complete their 6 months eligibility 4/10/22. They would then enter the plan on 7/1/22 and be eligible to defer on 11/1/22. The 11/1/22 effective date for deferrals means that's when deferrals are first allowed in the plan. Not uncommon for a new plan to specify a date on or after the plan is signed in existence. As to vesting, I'm going to give you the most common example and one exception. Your plan defines exactly how it is determined. You just look at the plan year and ask "did the person work 1000 hours"? If the answer is yes, they get credit for 1 year of vesting service. Hire dates and termination dates don't matter for this measurement. The one exception is if the plan excludes service before the start date of the plan. But, in my example, the plan year, the hours, etc could all be different. Read the document.

This doesn't make any sense.

I know they're trying to save some money. But don't let their problem become your problem. Unless you're an attorney, don't try to create a DRO.

"satisfying coverage" would still be an issue because "former HCE" isn't an HCE.

call your attorney.

PS - yes to last day requirement (subject to discrimination testing) SHNEC - no to last day requirement

Yes. In fact, you could set up a plan to just cover a single NHCE and have no testing. We have done things like this quite often for fast food operations, etc. The owners aren't worried about participating, so we exclude them (and all other HCEs if they have any) and cover only the managers and assistant managers at each location. Generally those people are paid pretty well, but don't qualify as HCEs.

What advantage would a SIMPLE 401(k) have over a regular 401(k)?

A SIMPLE 401(k) is a combination of all the bad parts of a SIMPLE IRA and a 401(k) plan. I've never run across an employer for which a SIMPLE 401(k) was a good solution.

I've never seen a non elective contribution calculated on a per pay period basis.

Then it's only owners. Non owners aren't HCEs the first year of their employment.

If the plan requires it, you have to do it. The plan document will outline what refunds to do for a 415 excess.

I wasn't worried about the charges. Just that you CAN'T have a plan with just Roth. So if you have set it up as 002, it's wrong.

Agreed. This is the issue.

Same

If I had thought about it, I would have made the effort to do so! 😁

Thanks for saying hello!

If the employee was a participant on 1/1/21, then SF

Ms Vicki, jeans and a nice shirt will be fine. Speakers usually dress nicer and I'll always have on a bow tie. But you'll fit right in without any issues.

Agree with EBE. I have spoken to a very good TPA friend who knows her stuff about CALPERS and she told me that remote employees in California were subject to the coverage rules. FWIW.

Agreed. It also tends to defeat the advantage of a prevailing wage provision in the plan because, if it's a CODA, the amounts are subject to all the FICA, etc, labor costs.

With the 3% SHNEC, you lock in your cost in advance. With the others, your contribution is dependent on what the NHCs contribute.

Timing of the divorce is relevant. Also, have they had any minor children during this time?