DDB BN

Thank you.

The employee earned non-union and union compensation from one employer. His W-2 from the one employer includes both non-union and union compensation. He did not receive any compensation from the other employer in 2025.

There are 2 Corps in the controlled group. Employees of both Corporations receive union and non-union income. The W-2 they receive each year includes both and we back out the union comp for calculation of the SHM.

Plan Sponsor has non-union and union compensated employees. Union compensation is excluded from the plan. One of the employees will have W-2 FICA wages of about $70,000 in non-union compensation for 2025 and W-2 FICA wages in union compensation of about $125,000 for 2025. Is the union compensation included to determine if the employee's compensation is over $150,000 for Roth catch up for 2026?

What about LLC Members in an Owner only plan? They have combo CB/401k plans and will not know what their net LLC income will be until much later in the year. Since the CB/401k PS contributions are backed out we have no way of knowing how much can be contributed as Voluntary after-tax to convert to Roth until the CPA calculates the net LLC income and the Actuary calculates the CB contribution.

401k PS plan. The Owner and his wife are going through a divorce which has been ongoing since last year. It is a nasty divorce scenario and may go on for another year or so. The Owner and his wife both have an account in the 401k plan. The wife terminated employment last year and is requesting a partial distribution now to pay her Attorney's fees. We received the request to approve her partial distribution. Since we are aware of the impending divorce since last year, we informed all parties that a QDRO is be prepared for both the Owner and his wife's benefits. The Attorneys on both sides indicated that the QDRO is not necessary as the Owner said it was okay for his soon to be ex-wife to take the distribution. I am not in agreement with this. There is nothing in the QDRO procedure in the plan document that addresses this issue. Can this distribution be processed without a QDRO?

A Participant (Owner) in a 401k PS plan died in July 2022 and his benefit was rolled over to an IRA QTIP Trust for his Spouse in October 2022. He would have been 72 in September 2022 and his RBD would have been 04/01/2023 had he not passed away. Now that his benefit was rolled over to an IRA QTIP Trust, is the RMD for 2023 based on the deceased Participant's DOB or the Spouse's DOB? Is the RMD to be distributed based on the deceased Participant's RMD age or the Spouse's RMD age?

Existing company is a Corp owned 51% by the Grandfather and 49% by the Grandson. They sell cleaning products to the Restaurant Industry. The Grandson would like to start a new Company, as an LLC. The Grandson would be 100% Owner of the new entity. New LLC owns IP and charges a royalty to Corp (Existing Company) Corp produces and sells products covered by the IP Grandson is employed by Corp (Existing Company) as an officer and is possibly a director Would this be considered an ASG or can the Grandson start a 401k PS for his new Entity without regard to the Corp (Existing Company)?

Do you subtract it from the gross K-1 or the net after all that other arithmetic we do? This is also my question. As for the S Corp, it is my understanding that it does not impact the W-2, only K-1 earnings.

How should the net LLC income be calculated after back outs for an LLC that made the PTET election for 2021? Example: $100,000 LLC income, PTET payment = $6,850, net LLC income flows through to K-1 = $93,150. The SS / Medicare tax ($6,580.84) deducted from $93,150 along with the Employer contribution profit sharing (17,313.83) for the member with adjusted net income of $69,255.33? If not, then what is the way to approach this calculation when a PTET election is made?

Merry Christmas!

Thank you.

DB plan terminated and excess asset will be transferred to the 401k PS Plan (QRP). Questions: - Must the excess asset be allocated in the QRP based on 1/7th of the excess each year or can the allocation be an amount based on desired allocation by Plan Sponsor even if less in each year? - Can the allocation be based on new comp 401(a)(4) method with the Owners at 415 max and employees at minimum to pass testing? Or must employees receive allocation at 415 max as well. - If there is excess asset at the end of the 7th year, must all participants receive an allocation up to 415 limit before refund of remaining excess at 20% excise tax? Continue to allocate until all excess funds depleted or QRP terminates? In 7th year, allocate based on new comp max for owners / min for others and refund remaining excess? - Can excess assets in the QRP be used to pay plan expenses.

Thank you to all.

Can a one person sole proprietor with DB plan investment in Bitcoin? What about a one person LLC with a 401k?