Bill Presson

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?

What a perfect example of govt incompetence.

Hire a professional to fix it for you. Way less than $150,000.

We had an incredibly difficult time with them last year. They were requiring medallion guarantees, etc. Client finally opened an account at a local bank and the trustee was able to go online and request a wire to an account "with the same name". Paid everyone out from that account.

Agree with this. I don’t think it’s a thing. You just don’t post the notice for the upcoming year.

One thing in our basic plan document indicates "The Employer may collect Participants' After-Tax Employee Contributions using payroll reduction or other collection procedures." So, I think the check gets written to the Employer and the Employer deposits it in the plan? Although they could have it written directly to the plan.

Wanting to return to this, please. Whether a sole proprietor or owner of an entity taxed as an s corp or just a w-2 employee that works for a company that allows after-tax contributions: can that person decide in January to make a contribution and do so prior to 1/30 and have the amount count as 415 for the prior year? I can't find anything specifically saying yes or no. We know the deposit doesn't have to happen before 12/31. But does the decision/election have to happen before 12/31? We know it doesn't have to be a payroll withholding, so I'm thinking that it doesn't have to happen before 12/31.

I’m assuming your w-2 job is for an unrelated employer. If you’re already maxing your deferrals in that other plan, why would you have a solo 401k and worry about doing a tiny PS contribution? Not sure it’s worth the trouble and cost. If you’re doing it for after-tax/roth conversion, maybe it makes sense.

VFCP is voluntary. What if you never file a VFCP, would you think to report them forever?

For a SIMPLE and a SEP the IRA accounts can just stay where they are. For terminating a SEP look at the bottom of this page: https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep

Looks to me like a multiple employer plan where each company will have to pass the non discrimination testing. Brother and sister ownership doesn’t get attributed between themselves. For adult children the attribution would only go to the parent or child that owns more than 50% of the entity. That’s not the case either way here. I don’t see any attribution between A or B. So I’m not sure there’s much reason for these businesses to sign on to the same plans. What’s the advantage?

Yes it can exclude a class (like a location or job category) and yes it must pass coverage.