Bill Presson

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.

Congratulations Dave & Ms Lois! It's been an incredible benefit. I'm very proud of my December 3, 1999 join date with BenefitsLink.

Frankly, in this scenario, I would recommend the client do the VFCP and the payroll company pay the costs.

For #1, I assume there will be a new LLC with a new EIN even though the name is the same. So you'll need to amend the plan to have the new sponsor take over sponsorship. For #2, The plan stays the same so this is correct. For #3, the plan isn't restated (maybe) but does need to be amended showing the new sponsor. The 5500 will file under the new sponsor EIN/PN and you'll show the old filing information under Part II, 4 (assuming 5500 SF). For #4, other than the amendment above, I don't see anything else needed.

Bless your heart, @Belgarath!

You'll likely have some future HCEs entering the plan then.

I didn’t see what the service requirement and entry dates are for the 401(k). Sorry if I missed it. But if it’s 1 year and dual entry, odds are pretty good you’ll know their HCE status by then.

Agree to read the document. It will include the sources from which loans can be issued. I’ll be shocked if Rollover account isn’t one of them. I would also be shocked if someone with a Rollover account isn’t included as a participant even if they haven’t met the eligibility for other sources.

Probably. Is that the case?

Money is fungible. The requirement is to refund out of his account. You don’t have to find the specific dollar that was contributed in 2023.

You need to contact your (former) employer. Doubt this board can help with that.

Oh, you sweet, summer child. 😇

Of all the “stuff” TPAs and RKs have to deal with from the SECURE acts, this is actually one of the easiest to implement.

They still have about 45 days, right?

First, I'm not an advisor so we are technically investment agnostic. The only advice we give is how the investment would likely impact the plan and actuarial calculations. Lou S. did a good job of laying many of the concerns.