Jakyasar

No you do not but it was done by mistake by someone.

Hi 2019 5500-EZ was filed with less than 250k in assets -first year of the plan/filing but stopped filing in subsequent years and assets are still under 250k. Was there a continuation requirement because initially it was filed? Thanks

Thank you all for your comments

So the fact that there is no CG does not eliminate the combined 415 limit?

Corey, it is the same line of biz and it is a successor biz. No issue on the CG, agreed.

I own company a 100% and had a DB plan which terminated. I started a new company and now own only 50% and want to start a DB plan. Same line of business. Does my old DB offset my new DB?

Very slow brain activity day Plan fails 401a26 and need 4 additional participants. Want to keep the cheapest options, surprise! Bringing in 3 eligible but categorically excluded. There are a few others in this category but they would be costly to bring in for 401a26. 4th one is a not yet eligible employee i.e. not yet completed 21/1 requirement but really cheap solution. Any problem bringing in the 4th candidate by 11-g rather than utilizing other already eligible and categorically excluded employees?

ASG has 3 plans. 1 plan never had a key employee and not top heavy - Plan X The other 2 plans are top heavy and provide top heavy allocation. Is Plan X required to be part of the aggregation and receive top heavy allocation?

Once you activate the plan, make sure to exclude any increase attributable to the HCE's for the cushion calculations. Otherwise, the statements from Effen and Bill are correct.

That's the reason I am thinking of having the tipping not excluded. The sponsor may not have the correct data on the tipping part but cannot argue with the full w2/payroll records. The purpose is not to increase the benefits necessarily but to avoid getting incorrect compensation data especially if the records are not kept properly thus not exclude them for sketch records. @Lou S.No AFTAP issues

It is for a DB plan and it will increase the benefits to all non-hces, nothing else.

any takers?

Hi If the plan document states tips are excluded, can the plan be amended retro to 2024 and include them, after all, increasing the benefit? Curious.

It happens that second guessing oneself especially in the midst of reviewing hundreds of documents with a deadline that is in the middle of the tax season. Thank you all.

John, it is integrated because the owner is younger than the employees but making maximum salary, general test will never pass with trying to keep the cost to the rank&file at a minimum possible.

I am waiting to hear from the RK on the "why". Trying to get to the bottom of all this and still searching for answers.

It is neither, they confirmed receipt of the wire transfer in but never allocated to the 3 participants, did not inform the plan sponsor of any issues/delays and simply returned the monies in January.

Hi Here is a new one for me. Client just informed me that the RK (no name) returned the 2023 PS contribution to him in January (he just informed me a few days ago). He sent them the check back in September. As this is a combo plan, there are 2 issues: Deduction was taken for 2023 but deposit was not made Gateway/top heavy is not satisfied Anyone came across a situation like this and what is the correction? Thanks

401k plan with 3% NESH and integrated PS allocation provisions (last day+1000 hours requirement) The only NHCE terminates during the year with less than 500 hours. 3% NESH is allocated. Plan fails ABPT but passes ratio testing under 410b. As the participant got 3% NESH, cannot be excluded from PS, correct? Gateway is 4.5% i.e. would require 1.5% additional PS allocation, or more to pass 401a4. Anything I am missing here or misrepresenting?

For 2023, I owned over 10% of the company and my daughter was an HCE in the pension plan. Effective 1/1/2024, my son became 100% owner who is also in the plan. For 2024, is my daughter an HCE as I have no longer an ownership?

Looking at a CB/DC combo. Can the LTPT employees be excluded from SH/PS with the following provisions as well as testing/gateway/top heavy? Amend the 401k plan so deferral is 1 year & 500 hours - currently 1000 hours Safe harbor, profit sharing at 1 year and 1000 hours.

The so called gross compensation, which can be different than W-2, may be on the actual payroll records. Also, the plan document must provide how the compensation is to be determined. There are automatic exclusions and inclusions, depending on what option is checked on the plan document.

I am not referring to any CB plan here but thanks anyway.

Hi Corey Thank you for all the extra info but the only thing I was asking is in the hypothetical scenario where in a combo plan, if and only if the DB plan is providing the top heavy, what the percentage would be. Why am I thinking 3% even though it seems to be 2%. Long day, not thinking straight. If this was a DC only then it is 5% where the participant benefits in both plans.

Follow up - participant is in both plans