Jakyasar

CB plan excludes them categorically. PS plan provision is everyone in their own group. Not an issue as the sponsor is a corporation. Now technically no one is included/excluded by name, at least in my opinion but I may be wrong.

Reasonable classification

Hi -- Census: HCE1 & HCE2 NHCE1, NHCE2 & NHCE3 CB plan covers HCE1 and NHCE1 401k/PS covers all In general, I managed to pass annual but due client's request for the HCE2, things got complicated. 410b is not an issue, passing both ratio and ABPT. Is there a way to test HCE1, NHCE1 & NHCE2 under annual method and HCE2 and NHCE3 under component rule? The reason I am asking is because neither HCE2 nor NHCE3 are covered under the CB plan. Thank you

There is no anxiety, just frustration on how long it is taking.

Hi I want to check others' experience on time frame and expectations for getting a PBGC coverage determination. Applied for determination on PBGC coverage beginning of March 2022 for a financial company. Was contacted for additional information multiple times during March and provided everything they asked for. Last communique was on 3/31/2022. Haven't heard from PBGC by mid-April so started following up multiple times and the responses I have been getting are: "We are working on the request for an opinion letter for the proposed plan. I do not have an estimated date that a letter will be issued." "We still don’t have an estimated date for issuance of an opinion letter. We’ll let you know when we do." This one was last week. Anyone had a recent experience? Client is anxious as this is for 2021. Thanks

Thank you both.

Here is a new one for me. PBGC covered DB plan, owner plus 1 rank&file employee. Client pushed to have the only non-owner participant to be paid out in 2021 after employee's termination. Client provided the final salary paid for 2021 based on the final payroll (even had them confirm). The final salary for was lower than prior years and did not affect the average compensation Provided the lump sum and they paid out. So, now the plan was just covering just the owner for the rest of 2021. Went to PBGC and got exemption from further coverage effective 2021 year. All good, well.... Just got the actual 2021 w-2's and the actual salary is much higher that I was provided and affected the 3 year average compensation i.e. the employee was under paid, a lump sum of somewhere between $100 to $200 - did not do the actual math. No 415 issues whatsoever so no MASDs etc. The question now, what happens with the PBGC exemption? Technically I still do have a rank & file as of 12/31/2021 with a $1.50 accrued benefit and very small lump sum due. Also, can they pay this participant out based on the prior distribution election form (IRA rollover)? Anyone had this issue before? Thanks

In case of a combo plan where different compensation definitions are used for contributions, isn't the combo testing done using the highest compensation? Curious.

ERISA Online Book (EOB), Chapter 7, Section XVI, part E - Timing of Contributions has a well written explanation (not sure if I am allowed to copy the language here). Otherwise, I agree with Calavera

If they are eligible but not electing to defer, they are participants. If they are eligible but excluded categorically, they are not participants.

May not allow kids be in the solo 401k plan, just the spouse.

If the plan sponsor is an S-Corp, assuming only family members, they can file 5500-EZ. However, even if a marketing term as imchipbrown stated, some solo 401k providers may not allow. The documents are usually prototypes (at the ones I have seen) and they may have certain requirements, as Bri indicated. FWIW

Yes but... By design, many CB plans are paired with DC plans where most rank&file are primarily benefitting under DC plan so there may be BRF issues. This was discussed on the board a year or two ago. As Lou said, advisable, meh

One addition, if the first year was 2020 that the son became eligible, if the sponsor is an s-corp, 5500EZ is ok, it is on the 2020 5500-EZ instructions. "Covers only one or more partners (or partners and their spouses) in a business partnership (treating 2% shareholder of an S corporation, as defined in IRC §1372(b), as a partner);" This was discussed on this forum sometime early last year, might be worth checking out. Prior years may need to be redone.

Thank you both for your comments. As I have no required contributions for either BOY or 4/1, I can pick either.

Hi Calendar DB plan with EOY valuation. 1 Lifer Date of termination 4/1/2022. Need to run the final val. Under automatic, is my new val date 1/1/2022 or 4/1/2022? I think either is fine but want to double check. Thank you

Thank you, I already did but they pulled a fast one saying amendment can only be effective beginning of the month, so I saved 25 days, go figure. At one point, it is not worth the battle once the war is over. It took them 2 months and lots of waste of my time get this done for a simple thing. Just venting.

Any takers?

Based on my research, I am beginning to think the suspect is box 5, could be wrong but some very reputable CPA's agree with 5.

Hi A record keeping company (RK) that is also the document sponsor insists on 30 day waiting period for the following amendment to be effective: Plan has 401k+ 3% NE (non-elective) SH+PS provisions Currently, 401k and NESH has 1 year wait and age 21 with first month following completion of eligibility as entry date. PS portion is 21/1 year with dual entry. Plan sponsor wants to eliminate the 1 year rule (age 21 stays) for the 401k+SH portion and have immediate entry as of date of hire but does not want to change PS provisions. Is this true that they have to wait 30 days for a more favorable eligibility? RK insist on it so that they can change and provide an updated SH notice. Thank you

The document excludes nothing. So, box 1? Is that what you are saying?

So, it is box 5 for pensions?

There is a deferral but it is roth so no adjustment.

Actually it is not. I provided rounded #'s. The real numbers are too much of a coincidence and here they are: W-2 box 1 76,827.21 W-2 box 5 66.999.93 W-2 box 14 - other - 2% SH 9,827.28 - this is the difference between box 1 and box 5

Sorry if this was asked before, cannot seem to find it This is for 2021 W-2 box 1 100,000 W-2 box 5 90,000 W-2 box 14 - other - 2% SH 10,000 - this is the difference between box 1 and box 5 What is the 2021 salary for pension purposes? Thank you