Bill Presson

I think that ship might have already sailed.

Larry Starr AND Jim Norman in the same current thread? It's a post-Festivus miracle!

You can exclude Company B because they are all HCEs. You can always exclude HCEs without failing coverage. Again, make sure the document reads correctly. In some documents, you have to choose to exclude compensation from a related employer whether or not it has adopted the plan as a participating employer. Now if Company B had a plan and was trying to exclude Company A, THEN you would fail the coverage test.

Yes, it's a controlled group. As to counting the compensation, it depends on whether Company B is a participating employer in the plan AND how the document reads.

Maybe. I think it depends on the eligibility requirement. If you use 21/1 with semi annual entry, most people will have two years of service before entering the plan.

If elected in the AA, the QACA SH (match or nonelective) can have a vesting schedule attached.

Well, the accountant should do these 6 as well. But if they won’t MT likely will.

I don’t understand what you mean the owners are going to do. Seems off. But if you’re asking about an amendment to terminate and bring the plan up to date with all legislation, yes. And an SMM is required as well.

If the money left the plan and went to rollover IRAs, someone needs to generate a 1099. Who did the 1099s for all the rest of the participants? They would likely do these 6 as well.

I’m not aware of anything that changes the distributable characteristics of the money source due to a Roth conversion. Someone needs to cite a source.

Then seems like 2 and 1 to me.

If they both have money in the plan and are both still employed, it’s 2 and 2.

Side note: $5k gain in 7-8 years? Yikes!

No.

I think it’s for terminated participants taking a distribution but not waiving annuity payment.

I can’t believe Fidelity would do that even if they could do that.

We encourage all of our clients to default to 10% MAE and probably 98% of them agree. We've had very little pushback.

Seems like the facts changed between your two messages.

What testing would cause a refund to the HCE if the plan is safe harbor?

Ms Emily, I don’t have the stats only opinions. 1. SHNE likely doesn’t offer the same incentive as SHM. 2. People shouldn’t need an incentive to help themselves. 3. We have to design plans to accomplish what the owners need as well. 4. Congress (and IRS) made the rules. We just have to live with them. 5. I wish Congress (and IRS) would stop changing the blanking rules so often.

We write it in our document that HCEs are excluded from SHNE but the employer has the option to contribute. It’s not an employee decision. Just gives the employer a lower floor when they want to do the absolute minimum. So you’ll have to RTFD.

Safe harbor match doesn't impact the ACP test of after-tax money.

They can in our ASC document.

So I’m assuming the check was written and cashed in 2025. Seems it would be a 2025 1099.

When did the assets leave the plan?