Vlad401k

We have a plan that is considered a Davis Bacon plan. The company made QNECs as part of the prevailing wage arrangement some HCEs and NHCEs. I understand that up to 10% of compensation can be used for NHCEs in the ADP and ACP tests, however, do the QNECs for HCEs have to counted in either of those tests as well or can the HCE QNECs be ignored for testing purposes?

How should the reporting be done on a 1099-R when the participant takes a distribution of corrective deferrals (over the 402g limit) after 12/31 and the deferrals had a net loss? I understand that only one 1099-R is issued and that the total amount (net of losses) is distributed to the participant with a separate statement noting that the participant will be taxed on the entire excess deferral amount in the previous year and he can take a tax deducation for the losses for the year in which distributed. However, which code should be used on the form? Should it just be code "P"? It doesn't make sense to me because the amount taxable in the previous year (which is the excess deferral amount) is greater than the amount actually distributed. Could someone please clarify?

Thanks Tom. But do you know if it's mandatory to use code B and 7 together when the participant is over 59 1/2. Could you just use code B by itself?

The participant is over 59 1/2, but has not met the 5 year rule for Roth distributions. So, earnings are taxable. Should code "B" alone be used or are codes "B" and "7" used together for this distribution?

What code should be used for a distribution from a 401k plan into a Roth IRA with the participant requesting 20% federal tax withholding? I realize that if the participant does not request any withholdings, we use code G and indicate that the distribution amount is taxable. However, the issue that I have is that when a participant requests a 20% withholding, shouldn't that 20% amount be considered a distribution (early or otherwise, depending on age)? And if so, it does not seem like it would be possible to send only one 1099-R request with those instructions since code G cannot be used with code 1 (or 7, again depending on age). Should there be two 1099-R requests filed?

Just a quick question... I remember reading something about this, but don't remember the source. Can you take a loan out from the rollover source (rollover contribution is made prior to becoming a participant) before meeting the eligibility reqirements? So let's say the company requires you to be employed for 1 year before becoming eligible, can you do a rollover contribution and take a loan from that source, before completing the 1 year of service?

In one of our plans, we have a distribution pending for a U.S. citizen who's currently living abroad, but is planning to return to U.S. at some point in time. She requested a direct distribution. Should the federal withholding be 20% or 30%. I know's it's 30% for non-resident aliens, but since she's technically a U.S. citizen, should it be just 20%?