Mr Bagwell

Awesome!!

I would just like to thanks everyone for the advice and for those that can't give advice, "non-advice". There has been so much help and guidance this board provides. I'm not sure what I would have done without it!! Appreciative is not descriptive enough. It's time to switch professions. Again, thanks to all of you.

That's bad.....! But good. Merry Christmas!

I would get the distribution/correction done this year so all the 1099-Rs are done for the tax calculations. It's done and over with and you are not thinking about it in 2025.

I understand that you are saying that Mr. Guy is not terminated but just not working, correct? If so, I would say that he is an active employee, so no RMD. Keep him high on the list of "always checking for". You never know what they will code for a term date if he doesn't come back to work in April of 2025. Just my two cents....

Yes, you can do this.... Tracking the plan year hours and then tracking anniversary hours will be challenging and I do not envy you or the process. I can't think of any additional testing. You just need to know who and when everyone is eligible. Maybe they can add monthly entry for all sources? LOL Good luck.

Keith, Are you implying that the QNEC for missed deferrals is going to 15,250? If so, the employee would be able to defer via payroll another 15,250. The 15,250 correctly deferred to the 401k plan would be the amount on the W-2. As Draper55 opined, the participant is limited to the QNEC and Deferrals by the 402g limit for the year. The participant does not get their cake and get to eat it too.... Hope that helps.

I would suggest this is not a forfeiture, but rather something that should probably go to an unallocated account and used up as soon as possible.

Peter.... I know of fee agreements that say that contribution corrections/earnings corrections are minimum $100 and $100 hour there after. I'd bet most TPAs or Recordkeepers have the provision to charge for these services.

Why not use the highest performing fund for the large fund? Sometimes whining does help.....lol.

Thanks CB.... Yes, 2 plans. Plans are being kept separate for now. No cross eligibility intended. I just wasn't sure if the ONLY employees affected by transitioning would be discriminatory. The demographic of the employees moving from one plan to the other is like 2 HCE and 20 NHCE.

Company A is purchasing Company B. Stock Transaction. Company A is transitioning employees to Company B and wants to ensure that the employees in the transition get the annual PS. PS has last day and 500 rule. Can we amend the plan for just the employees transitioning? Or, do we need to amend the plan to remove allocation conditions for all employees for the plan year? I feel like we need to remove the conditions for all employees for the 2024 for Company A..... Thoughts? Thanks

Safe harbor match does not factor into passing cross testing.... that's why you design cross tested with 3% safe harbor safe harbor 3% is used for everything to pass testing and remember... you have to pass gateway before you can cross test.....

1. Seems like this would be an Failure to Implement 2. I believe you can do more than a 50% QNEC.... I think I lean to the fix of: IF the dollars submitted to the plan were "correct", I would shift the money from the Deferral source to QNEC and move along. Earnings are done and aren't a factor because the "correct" amount was invested into the right funds. This also alleviates the employer trying to recoup funds from the employee. To be clear, I am suggesting a 100% QNEC.

Maybe, but why? Seems like a difficult plan to administer. 4 of 5 weeks works greater than 20 hours and then receives match? And 1 week the don't get match? Ugh!! Plus notices each year. No thanks. Just give them the match and move on. My two cents.