Jakyasar

Hi John Match is over 3% of salary. Thank you for your input.

Combo plan CB/DC DC has SH match (not nonelective 3%) HCE (not owner) is excluded from CB plan. Defers and gets SH match. DC satisfies TH and states only TH with no percentages. HCE TH is satisfied without additional 3% PS allocation, correct? Thanks in advance

Hi Just picked up a PBGC audit for the first time well in over 10 years. Any new developments/things/pointers anyone with recent experience can share? Thanks

I agree with you about the language. DC doc does not state 5% and it also states "for a non-frozen DB plan", it is not required unless 5% is indicated (FIS doc) So, I take it, from what I read and above, for a frozen DB plan i.e. no one accrues a benefit, 3% is the top-heavy. It also states, for all participating in the DC plan only (there are exclusions for DB plan), top heavy is 3%.

Combo plan, top heavy and top heavy provided by DC plan. DC plan has 3% non-elective SH DB frozen but a class of employees are excluded. There will be no =accrual for 2025. The document states TH is provided by DC and nothing else. What is the TH requirement for 2025? 3%?

Isn't fresh start a law for conversions?

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?