Bill Presson

You should talk to your recordkeeper first. They will likely have a document to use.

I've always liked this guide. https://www.tasconline.com/uploads/KB/Flexsystem/FX055 Top Paid Group_042318.pdf

SECURE act allows a 401(k) to choose to be a safe harbor plan until the end of the year following the year that you want. So 12/31/21 for 2020 year. Hopefully your document wouldn't override that.

You'll also need to grant service to any other employee that was employed with that other practice.

Grateful for Ms Ilene and Derrin to provide their analysis for us here.

Post enough on here and it's gonna happen. BTDT.

4% isn't the maximum. You can do 100% up to 6% and still satisfy the ADP/ACP requirements.

I think we need more details here. The entity is owned in a trust. What is the "earned income" that the person is receiving? w-2? I think that counts. If the LLC is taxed as an S corp, then the pass through on the k-1 aren't earned income for anyone at all. If its' taxed as a "partnership" (with a single owner making it a disregarded entity) then the trust is the receiver of the "compensation" but I'm not sure that counts as earned income for A.

A SIMPLE IRA is required to cover all members of a controlled group. A SEP generally is required to cover all members of a controlled group (there are exceptions) but it definitely has to be tested. My advice is that this isn't going to work. He's likely going to need a 401(k) for the controlled group.

Okay. We'll see what she says. If we don't like her answer, I'll reach out to Ms Heather and Ms Kelsey. 😀

But that was prior to the SECURE Act. I'm not sure that would be accurate anymore.

I've emailed her to ask.

BG, this is not a slam on you, but I find it impossible to believe they can't track down a w-2 anywhere. Payroll company? CPA? Nobody?

I didn't hear that or at least don't remember it specifically. But Derrin and Ms Ilene are pretty reputable. 😀

Just heard that our SD office has received a couple of these.

Ugh. So start a plan for 2020 and merge it into the current plan and become a participating employer. What one can do this way, one should be able to do the other way and save the client money.

Well, that's a very nice compliment, but let's don't get carried away here.

Since they are considered a single employer filer, I can't think of anything. If it was a multiple employer plan, then there would be. WCP

This an excellent description and looks like (with the right loan policy), I'm wrong.

So far, I appear to be in the minority here.

You can (and I think should) do this as well, but that number can't be used to file the 5500.

I definitely think you are wrong especially about aggregating the balances in two plans to determine the amount available from one plan. If a source is unavailable, i don't see how that is any different than trying to use unvested money as collateral.

It needs to be brought up to date. Whether that's a formal restatement or adopting the "termination package" that every document provider offers is dependent on the provider.

We are a little flexible in that regard. I personally think anyone that had a balance at any time in the year should get one, but I get push back from others that I'm being ridiculous.