Bill Presson

Solo 401(k) is a marketing term and not a real thing. Probably the only difference is that some mutual fund/brokerage providers will create a “solo” document that severely restricts the operation of the plan. They also aren’t always good at ensuring the plan document satisfies all the amendment and restatement rules. Whatever it’s called, you have to follow the eligibility, discrimination, and filing rules. Also, you have to follow the long term part time rules. I highly recommend you find a TPA to handle the compliance. It will cost you less to have it done right than it will to have someone fix it later.

Belgarath is right - can still do PS, but deferral time ended 4-15.

My goodness (language bleached for family site), I hate those trailing dividends and incredibly late legal settlements.

Your best bet would be to ask your document software provider.

Can you fix your dates and ask again?

The list of characteristic codes that I look at says: "3H Plan sponsor(s) is (are) a member(s) of a controlled group under Code section 414(b) or (c) or of an affiliated service group under section 414(m)."

Don’t you have to test this match formula for effective availability when you have a match that increases as the deferral amount goes up?

Penchecks Trust

I assume this is the letter for the PPA document and it’s possible they missed the C3 restatement.

Here’s an IRS site that says SEP money doesn’t count for filing 5500EZ. https://www.irs.gov/retirement-plans/financial-advisors-are-assets-in-your-clients-one-participant-plans-more-than-250000

Kenneth is correct. The SEP assets are in an IRA and dont count as qualified plan assets. Just don’t put any more money in the SEP either.

If they aren’t HCEs or Key, I don’t see any testing issues.

Any chance the plan has the flexibility to do a 3% profit sharing for individual groups at the employers discretion?

Were they rolled over or merged into the plan?

Peter, I don’t know the answer but based on the facts that you’ve outlined, I wouldn’t spend 10 minutes worrying about it. I would include the ACA and set the default at 10% and move on with my life.

Absolutely.

I would prefer the deposits happen concurrent with the paycheck. But pre funding contributions happens and, as long as it doesn’t affect the year in which the dollars are deducted, is wholly irrelevant in an owner only plan.

An owner can pay himself on whatever schedule he desires.

And understand that a freeze doesn’t mean there won’t be any contribution due. It will still depend on the investments and overall funding level.

1099 is for the year in which the distribution occurs. He’ll get two distributions in 2025. One or two 1099s depending on how y’all produce them. Age used for the 2024 RMD paid by 4/1/25 is the 2024 age.

@Peter Gulia tagging him so he's more likely to see this.

Every plan document I've ever seen outlines what happens if there is no beneficiary. So, the Plan Administrator would follow that guidance and pay whomever it states to pay. Where it goes from there is likely covered by other laws and regulations.

Did they buy the stock or assets of the acquired company?

Without researching, didn’t this get expanded during the COVID shutdown and people accepted this for multiple years?

So it was a wire and not a check? This is odd and, while I believe you are saying what you have been told, I don’t believe “did not inform the plan sponsor of any issues/delays” at all. The sponsor is not being upfront OR their spam filter is too tight.