Bill Presson

I don't think you're going to find a specific cite, but the limit is a limit on compensation. The bonus isn't compensation, according to the plan. So you wouldn't limit comp and then reduce comp. Because of this, the 414(s) test gets harder to pass. Since you aren't actually impacting this HCE, the exclusion doesn't apply. If it's the only HCE and the staff have any bonuses excluded, you're very likely to fail that test. I hate compensation exclusions for this reason.

Since it's a controlled group, I would think this (from the instructions) would apply: "A one-participant plan sponsor must file a Form 5500-EZ (or a Form 5500-SF with the one-participant plan box checked) when the plan’s total assets and the assets of all their other one-participant plans at the end of the plan year are greater than $250,000."

I'm shocked, shocked I tell you! ?

He has a plan for each company?? It's a combined 415 limit, so what's the advantage?

There's an Ethics in Recordkeeping session. Maybe it will be covered there? ?

Welcome to the forum, DJ! We should get together for lunch and gossip about people we don't like anymore. ? WCP

I think the question is whether you can amend it in the middle of the year to not provide that SH contribution, not whether you can set a plan up that way. I think the sponsor is stuck for this year and would need to amend it for the next. I wouldn't want to be that aggressive.

Yes, you would need to amend the plan to give credit for prior service with the other employer.

For most of us, this would be accurate. WCP

I would be very interested in this.

And I'll be there. I'm co-chairman of the conference this year. This is my fifth and final year on the committee. I rotate off after this year.

No, the in person meeting at the Gaylord National Harbor. The specific session is the last session of the conference on October 23rd from 10:15 to noon eastern.

Agree with all the advice. Need to find a new RK or choose a pooled investment plan for the start and switch to participant directed at some point in the future.

Thanks Austin. It will be in the Ask the Experts session at ASPPA Annual this year.

Austin, can you take the original question and modify it with whatever clarifying comments, etc that you think are appropriate and email it to me at bpresson@egps.com? Thanks. WCP

I'll see what I can do.

Thanks Larry. I edited to clarify that I was answering no exceptions.

Generally, no, there are no exceptions. It's an employer decision. (edited because it looked like I was answering the wrong thing. Thanks Larry)

I've used Penchecks for a lot of years and been very happy with their services. WCP

Thanks. I'm not opposed to it, but almost everything comes back to the payroll data. If a 3(16) isn't actually doing the payroll and controlling an employer checking account, I don't see how they are relying any less on the assumption and timing of good data than we are.

Austin, what about the corollary to "getting plenty of new business without having to mention it."?? Are you losing any business to a firm doing it? Either in a competitive situation or losing existing clients? We've debated this for a long time at my existing firm and at my prior firm. I keep thinking it's going to be huge, but it just never seems to really take off.

These options work well in a owner only 401(k). But in a 401(k) with other employees, the after tax contribution typically won't pass the ACP test.

A little surprised that FIS couldn't provide you with a sample -11(g) amendment.

The plan year isn't relevant. The calendar year controls whether the amount was more than the 402(g) limit. What were the amounts during calendar year 2018?

Negative Ghostrider, the pattern is full.