Bill Presson

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.

I would think having a potentially volatile asset in a DB plan might not be advisable.

We do all the plan termination resolutions and amendments simultaneously and then proceed with distributions. Perhaps it can be done differently.

The plan has to be in compliance with all laws and regs when terminating. If they haven’t signed an up to date termination package, they shouldn’t terminate.

In-plan Roth Conversion (IRC) just means changing pretax money to Roth money. In-plan Roth Rollover (IRR) means the money was available to be distributed before the conversion. Many RKs limit IRCs to this type. In-plan Roth Transfer (IRT) means converting the money but it wasn’t available for distribution and you have to maintain the distribution restrictions of the money source. Many RKs don’t want to do this and have to track that many different sources.

Agree that I would likely bring in an ERISA attorney, but I would expand on Paul's comments regarding the financial institution. Ask them how they intend to make this right. They are the ones at fault here.

No