R Griffith

Not sure how exactly to handle a rollover from a terminated cash balance plan to a new cash balance plan - but if this was a rollover from the cash balance plan to a 401k/Profit Sharing plan - you would record the rollover as a Related Rollover in the 401k/Profit Sharing plan and would need to be counted as part of the top-heavy test. Not sure if there is such a thing as a related rollover for the new cash balance plan.

I believe Paul I is trying to say that the refund must be done by April 15, 2026 - not 2025. Or at least I am assuming the OP was someone that over contributed in 2025 and is taking their distribution by April 15, 2026. You do not need to create a new 2025 1099R - see above how you code the 2026 1099R with the Box 7 Code of P The code E 1099R as described in prior messages above are for EPCRS corrections - but a 402g correction is not an EPCRS correction. This would only need to be done if there was a 402g error in a single plan instead of a multi-plan error that did not correct by April 15. If I am miss understanding the situation, happy to be corrected.

I respectfully disagree with Paul I - there should be 2 1099R's for 2026. 1 will be for the return of contribution ($4,100) and will have a tax code P. The other will be for the earnings in 2026 ($95). The tax code P lets the IRS know the amount was previously taxable. See below from the 2025 instructions of the 1099-R: P—Excess contributions plus earnings/excess deferrals taxable in 2024 or a previous year. See the explanation for Code 8. The IRS suggests that anyone using Code P for the refund of an IRA contribution under section 408(d)(4), including excess Roth IRA contributions, advise payees, at the time the distribution is made, that the earnings are taxable in the year in which the contributions were made. Note. A participant is allowed to take out a prior year excess contribution when the IRS provides tax relief by postponing the tax filing due date, for example, due to a federally declared disaster.

Just an off the wall suggestion, and this is not advice to anyone and not suggesting to may be fully available. But have you thought of using a brokerage window for the plan and us the new Roth IRA as the brokerage window and make that a part of the plan assets? Not sure if the custodian would be on board, but if they would be on board to rename the account into the name of the plan, might you consider that to still be an in-plan rollover? I would for sure not go that route without actual advice from ERISA Counsel and of course the custodian would have to agree as well. Just something to ponder...

I would think buying a TPA with built in clients already would be the easier route to go - but may require more up-front cash (but at the same time, starting a TPA would require a large cash outlay with buying all the software you would need), but at least purchasing a TPA you would have built in revenue source. Agree about the 5-year business plan for either buying or starting - need to make sure you get over that initial process. My brother is an engineer but a serial entrepreneur and has purchased a few companies over the years. He always works with a broker who does all the leg work on finding him an acquisition target. My suggestion would be to find someone who can find you the right company to purchase - of course you will probably owe them a commission or some sort of compensation, but they will more than likely find you a lot more leads than just google searches. Good Luck!

Any estimate on the Highly Paid Employees that will have to Roth Catch-up Required Employees? Current level is $145K

I have never filed 5500's for the client, always made them log onto the system and e-file directly. However, I have seen the signature page filings on EFast. Since the client is supposed to keep an ink signed copy of the 5500 in their files anyway, I don't see just keep collecting the signature 5500 page is bad. You at least then know they have signed copy in their files.

I think you meant to say "no quid pro quo" - I agree, there are pros and cons, but I don't think you are doing anything unethically by hiring a client - would agree, might not want to mention your connection for fear of something for nothing. When you have local clients, it is always interesting when you interact in the "real world".

In order to truly correct, earnings on earnings should be done. That is how I have always done corrections. The idea is to make the participant whole, so they should have earnings through the earnings deposit day.

For recordkeepers that have managed accounts, gender is a piece of information that is useful for the life expectancy to determine how long the assets need to be available in retirement. While not a perfect fit, gender is also nice to have when someone calls into the call center and the name of the account is Nancy, but the voice sounds like Fred - that is a "flag" to watch for possible fraud. I was also thinking about beneficiary forms, but that has more to do with the collection of Married or Single information.

I would look for a company that can get you multiple quotes - so, you only work with one but you have several options for the Plan Sponsor to choose from. Sorry, I don't remember any names, but I have used some different companies that would do that several years ago.

Not necessarily that request, but I have seen the request to have only certain groups have auto enrollment. I don't see an issue with it as long as the document supports.

@EmilyS Sorry for the late reply, it sometimes takes me a while to get through the message boards. I agree with everyone above, but to answer your original question, you might want to check out the Plan Sponsor Magazine's annual benchmarking data - you will more than likely have to pay for that (if you company doesn't participate). But they provide a general all plan sponsor benchmark report, and then some specific industry benchmark reports - that will probably provide you the best source of data for what you are looking for - at least in terms of how many plans offer SHM vs SHNE. Good Luck in your data gathering.

Only the earnings would be taxable, if the deduction was truly an After-tax Roth deduction from pay.

You may be correct, but there also could have been a default election. For example, if you didn't elect to stay in the traditional DB Plan you were automatically moved to the Cash Balance plan. So, there may be no election form and you are where you are. I agree with Paul, go ahead and ask, but be prepared that there might not be any records. Each organization has their own retention policies, and I don't believe there is any specified rules/regulations about retention in the rules of retirement plans (other than the necessary information to determine vesting and eligibility benefits). Good Luck.