Jakyasar

Thank you all for your insights and references and comments

How about in-service? Can it be removed from plan provisions?

Since not a 401k/DC person, based on a conversation with another person who made me doubt myself. For a brand new 401k plan that did not include in-service initially, is it a legal requirement that the plan must provide in-service distribution option at one point, ever? After age 59 1/2 or after NRA?

As I am not a DC person, I need to ask the following question. Need to update a DC document for a one lifer 401k plan from another vendor for a new takeover client. I never include in-service and hardship and would like to remove the options. The owner-participant never utilized them. Are they protected benefits i.e. cannot be removed? Thanks

One lifer DB plan. Assets under 250k. Only 1 year old. I know they made the deposit by 9/15 but never got the information with the date, still pending. No 5500 filing required. However: 1. AFTAP not signed by 9/30 - as plan is only 1 year old, no issues under the first 5 year rule, correct? 2. Schedule SB not signed by 10/15 - what is the penalty for this, if any? - Never had to deal with this before. Thanks

One lifer DB plan, owner only. Owner rolls over the assets into an IRA without informing the TPA/actuary. This was done 45 days ago. The issues: Plan is not terminated so no termination resolutions, required amendments etc No distribution forms are completed Do not know if married, if yes, no spousal consent Rollover was in excess of 415 limits by 100k Attended the new EPCRS webinar today by ASPPA and looks like not correctible, if I understood correctly: By rolling back all assets into the DB plan within 60 days Self correction - SCP For all out there who may have dealt with this situation, what course of action was recommended to the client to take? Thanks

Agreed with both and thank you. To answer Effen's question, if they become an NHCE, accruals will resume as exclusion is specific if and only if an HCE.

Hi 2 scenarios: Scenario 1: DB plan covers a group of employees (group A) but the sponsor wants them excluded effective 1/1/2027. Coverage is not an issue. Do I need to provide them a 204h notice? I was planning to state group A is excluded as of 1/1/2027 in the amendment rather than stating group A's new formula is 0%. I do not see any difference as it is a reduction in benefit and it should have a 204h notice either way. Never did it this way before. Scenario 2: DB plan states HCEs are excluded and all participants received the SPD stating it. 3 years down the road, a non-HCE participant becomes an HCE and no longer receives an accrual, just vesting. Does this participant need a 204h notice? There is a no separate grouping with 0% in the definition of groups, just an exclusion in the eligibility section. Thank you

Having a brain freeze due to 10/15 - worse ever. Have not come across the following in quite sometime, a bit confused. DB plan. Client turned 73 early 2026 so RMD is due 4/1/2027. A two part question with the assumption plan terminates during 2026: Scenario one - distribution occurs during 2026 therefore he needs to take an RMD during 2026, correct? Scenario two: - distribution occurs in 2027, what are the RMD requirements, one for 2026 and one for 2027 as distribution occured during 2027? Thanks

If only the regulations were written by Mr. Spock or a Vulcan legistrator

That I agree but mine was a practical approach question. I have every intention getting an ERISA attorney involved, if I take the case. I just want to find out what other DB/CB gurus or actuaries do in these situations.

That's not a problem.

Hi Bill Thank you for your sound advice. It is not a la carte work, it would be a full buffet, I would be taking from the beginning and fix everything, each step of the way. What I am trying to understand is, what and if VCP filing needs to be involved and that is where I get an attorney involved. I am trying to understand if I can make all these corrections under EPCRS or SCP.

First time thinking about helping someone who has been delinquent for 3 years and wanted to check what others think and needs to be done, never had to deal with it before for 3 years. This is outside my comfort zone but may make an exception due to relationship, depending on the data I will getting. CB plan effective 2022 One lifer Is delinquent for the following (has initial document, not sure if cycle 3 is done): 1. 5500EZ filings for 3 years - easy to fix assuming no letters received from IRS. 2. Schedule SB certifications for 3 years as no valuation has been done 3. AFTAPs for 2023 and on - first 5 years rule may help here Has been depositing same amount each year and taking deductions. Any suggestions/comments on what to do on to correct all this and bring the plan into full compliance?

Great and thank you

Sponsor wants to pay the PBGC premiums directly from plan assets however, 2026 instructions are specific on no paper check. Has anyone dealt with a situation like this and if yes, what was the solution? Not sure if the plan can transfer the premium to the sponsor and the sponsor can then pay PBGC.

Will do but a project after 10/15, hope all is well.

Good point, thank you

This is not an 11-g issue at all. They simply do not have the cash flow. they barely made the CB contribution by 9/15 after hearing the penalties. I wanted them to finalize the DC component by 10/15 but not going to happen. As I said before, never seen this nor had to deal with it and quite concerned, for the lack my not being knowledgable about it.

Cannot remember this from previous discussions. Calendar CB plan. All rank&file terminated in 2025 and paid out in 2026. Only owners left in the CB plan for 2026 and on. Just obtained a PBGC exemption letter stating PBGC coverage no longer applies effective 8/15/2026. As the CB plan was covered by PBGC during the earlier part of 2026, can they still get 25% DC deduction for 2026 or now that no longer PBGC covered, they need to be limited to 6% deduction limit for 2026% Thanks

In previous various discussions on this board going back a few years, it was somewhat agreed that it an EZ filing. The reason I brought this up again is because the owner is not participating, if he was, IMHO, it is an EZ filing. FWIW.

Filing separately has nothing to do with family attribution rules under 318 and 1372, the instructions as explicit on being an "s-corp" and family members thus parents are covered under attribution rules. This also is an exception to Title I coverage (FYI, this plan is title IV - covered by PBGC)

Thank you for the response. First 2 is not an issue as they do not care about the deduction and there is no 415 limit, nowhere near. Thankfully I forced them to freeze the CB plan early in 2026 once I smelled the problem. So the deduction shift to 2026 will not be an issue. Aware of item 3. As for item 4, allocation and making the contribution towards that allocation is where I am quite concerned with this particular client especially meeting the gateway and top heavy requirements for 2025. I was hoping that they would finalize the contribution by 10/15 but looks like they will not do it which makes me very nervous for complience. As I said before, never ever had to deal with this in forever.

This is a situation I have never encountered before in all these years (too many of them) and the client just dumped it on me today. CB/DC combo. CB funded by 9/15. DC SH and PS will not be done by 10/15 but by 12/31. PS portion is also towards gateway and top heavy- standard. 2 questions: Is this approach kosher? What if they do not complete by 12/31? Top heavy, SH and gateway for 2025 is not satisfied Any other issues I am not anticipating? Thanks

Plan cover the 4 children of the owner (sponsor is s-corp) - owner is not a participant. Can this plan file 5500EZ? I say yes, agree?