suzeq4ever

I have a related issue that maybe someone can answer. I have an old DB plan with a plan year beginning 12-31 and ending 12-30. For a variety of issues, one being they have a DC plan that I would like to be able to test together with this plan, I want to change the plan year to a calendar year. I seem to remember, long ago pre PPA, that the IRS didn't care about the 1 day. Can I have a plan year going from 12-31 to 12-31 (366 days) and then start the next year on 1-1? That way I don't have to worry about a valuation and sched B for the 1 day. Nothing changes - my val date remains the first day of the plan year - except the plan year, which I can do by amendment. IS this kosher? any feedback would be appreciated. THANKS

thank you for your feedback. I was able to write this into the plan document without an issue, so my client is very happy...

I have a Safe Harbor 401k Plan with a 90 day eligibility. However, my client wants to carve out the warehouse employees because of the high turnover in that department and have a 1 year eligibility for them. We can pass the coverage tests by excluding this group all together, but they want to give this group an incentive to stay. Can you have one plan with different eligibility specs for different employee classes? Any feedback would be appreciated. Thanks Susan

I have a client who has schedule C income from 2 separate sources; one of which has a loss. Does he have to add them together to determine his SEP contribution or can he determine his contribution on each separately? thanks susie