ratherbereading

Larry - yes, I am aware that it's unknowable - just wanted to make sure I didn't miss something. So yes, that was my real question, as much as I should have known better than to ask. Thanks, all!

I have a large plan that failed ADP/ACP testing for 2019. They have 11 HCEs and 200 plus NHCEs -- they want to know now how much HCEs can put away in 2020 in order to pass the test. Not sure how to figure this out. They do current year testing and are less than 5 years old so they can't switch to prior, correct?

Still sounds like it's one or the other, not both. EITHER OR.

I don't think that would fly. It just sounds ridiculous. Giving 2 weeks notice isn't a rule--unless the employee signed some kind of contract, which is unusual. When a company fires someone do they give the employee 2 weeks notice? No.

By "plan" I believe you mean source. They are not 2 separate plans, it's one plan. From what you are quoting, "You may make either Regular 401(k) deferrals (pre-tax) or Roth 401(k) deferrals (after-tax)." , it sounds as if you can do one or the other, but not both. I would clarify with the plan sponsor.

What's your question?

Thank you!! I will take a look. Relius still has not responded to me.

Our default is 10% unless they want a different amount or none at all.

Trying to run eligibility in Relius and getting the following error under Plan Specification Errors: Sub PerformBulkWriteNet () :Database write error. Relius no longer has their chat, so I put in an Incident but who knows how long it will take them to respond. Anyone ever have an error like this? The plan specs are fine.

Honestly, all we look at in our Relius test is if it passed 401(a)(4) non-discrim testing. I have no idea how to figure out EBARS and I don't think I want to !

I tested them as regular match - my plan ended up failing the ADP test but passing the ACP test.

We don't usually charge, but I've found that clients rarely keep, or know where, anything is we send them. If it gets ridiculous, then yes, we charge. But your client should have everything without going to the TPA. Next time maybe they will save everything. They are definitely within their rights to reasonable charge, especially since the plan is no longer with them.

When we do our plan terms we don't distribute the participants' money until the ADP test and all work for the year of termination is done. What if someone needs a refund? Here's a previous link on the same subject that may help

Thanks Larry!

He cannot provide cites. Of course.

I believe he is!

It's not really a bonus, they just wanted to call it that. It's a severance package given to her post-retirment, which she would not have received had she continued employment.

In a discussion with a CPA who says a partner who receives a K1 cannot exceed the 2019 limit of $56,000--that catch up contributions never come into play because they have no salary from which to defer. Can anyone point me to IRS rules that dispute this?

The CPA just takes direction from the owner re. pay for the owners 3 ghost relatives.

Ironically, it's the CPA who does the payroll for my client. The wife and 2 daughters get W2s for their no-show jobs and the deferrals are made for them and the owner (also a W2 employee) in one contribution at the end of the year. In your situation, forfeiting is probably the way to go.

Nope!

Interesting. How did they defer if there was no compensation? Was it actually deducted from their paycheck? Did the plan accept a contribution that was not deducted from a paycheck? Looking forward to the replies -- similar to a plan I have -- the wife and 2 daughters of the owner, who do NOT work for the company at all, ever, are given a salary and their deferrals are maxed out at the end of the year as well as the employer contributions. But that is a little different from your scenario where they don't have any income.

Not sure this is the right board for that question.

Actually, I am quoting the adoption agreement.

No, she's not. Thank you, Larry.