Jakyasar

That is not up to me unfortunately but I am still not sure about the amounts to use as asked.

HCE deferred 35k during 2024 (over 50) thus exceeded the 402g limit by 4.5k The refund will be done prior to 3/15/2025 - does it make a difference if needs to be refunded prior to 12/31/2024? For 410b, which amount should be used? For 415(c) limit for PS purposes, is it safe to assume 69k-23k i.e. 46k allocation? The refunds will be made, that is not something to worry about. Thanks

Hi DC plan sponsored by ABC, Inc owned by Joe. XYZ Inc is also owned by Joe but no employees. Joe apparently took salary under XYZ Inc for 2023 and applied for pension purposes. Joe now decided to let the TPA know this happened and wants TPA to have XYZ adopt the plan as well so that can continue having both firms within the plan. Can the effective date of adoption be 1/1/2023 for XYZ Inc? Is this correctible under self-correction? Thank you

Much appreciated, thank you

Hi Sorry if this was discussed before. Not a 401k person. I want to make sure I understand this correctly. Client is 75 years old. Because not between ages 60-63, cannot have enhanced catch up, correct?

Thank you for confirming my suspicion on being ZZZ rule. Thank you for the cite as well. Thank you also for bonus ACP note. However, I think they will need a notice especially if amending for the first year.

Hi Question for 401k gurus out there. Not a 401k person. Existing plan with 401k/SH/PS provisions. Called the "no name disclosed" payroll/RK company on behalf of a prospective client that I am designing a CB plan. Let's call them ZZZ Asked ZZZ to amend the plan's SH provision from basic safe harbor to 3% non-elective effective 1/1/2025. I was told by ZZZ that there is a 45 day rule prior to year end to change the SH, is this true? If true, can you please provide a cite? As a signed note, ZZZ told me that the same 45 day rule may apply to amend the PS provisions as the plan has SH in it (PS has last day rule) which I said, I do not think so. Am I missing something here? Thanks

Peter thank you.

Under SECURE, sole-prop can adopt a 401k plan after year end and prior to 4/15 (as far as I know, no extension in filing allowed) How about changing deferrals for an existing plan? Do they need to be done by 12/31 or can be done by 4/15 following? Thanks

I think IRS allowed it because the account balance does not go down (referring only to fixed rate) and they did not calculate how it would affect the monthly accrued benefit itself, just thinking out loud. Non pro-rata is in various documents that I have seen so it is valid and kosher, at least per IRS pre-approved documents. Different actuaries may have different opinions but as long as the document provisions are followed and applied, that is life, fair or not. Thank you all for chiming in for the 411d6 issue

Neither, looking to amend the plan effective 1/1/2025 and switch to no pro-rata

Truphao, I understand your position but it is approved by the IRS i.e. in the plan document as pre-approved. This is a different discussion though. Thank you both for your comments.

Hi Looking at a take over. Interest crediting period is determined on a pro rata basis upon termination. If I want to amend it to zero i.e. no adjustment until year, is this 411d6 issue? Thanks

Hi Sponsor has an existing 401k plan. Wants to add a PS plan - separate plan. Can the new plan exclude service for vesting purposes? Never had a plan terminated in the past 5 years.

Hi Looking at a possible take over for DB/DC combo DB has a safe harbor integrated formula but does not pass ratio test on its own (not sure about ABPT as I am not yet provided the testing. Top heavy provided under DB plan. DC has deferral and 3% NESH and passes 410b ratio test. No PS allocation. If both plans need to be aggregated for 410b testing, do they need to be tested for 401a4?

Good point but checking a takeover in this situation and correcting what prior TPA did. Also may not always be a cost effective way to approach.

Agree with both, thank you for confirming.

Plan in existence for 10+ years. Initially only has 401k+SH 2020 added PS subject to 2/20 vesting. Can service prior to 1/1/2020 be excluded for vesting service for PS portion?

412e3 plans (small plans), assuming done properly and have no separate top heavy funding issues and also no investments other than annuities and insurance, are not required to provide schedule sb. PBGC is a separate issue.

Ok, let me rephrase this as may not have been clear (sorry, a little less brain activity at this time of year). The 5500-EZ has been filed with all zeros even though the assets (annuities plus cv's exceed 250k for the past many years). I was told that, for 412e3 plans, the 5500EZ is not required to provide assets, jt needs to be filed. I could not find anything to back this up. Hope all I was clearer this time.

Assuming assets exceed 250k, you need file though, did you see something else?

Hi I have not worked on these plans well over 10 years. Looking at a 5500-EZ that has been filed with no assets for many years. I was told that, technically these plans are not required to reflect assets, at least on 5500-EZ i.e. ok to file them blank. I checked the 2023 EZ instructions and unless I missed it, did not find anything backing this up. One set of instructions I found stated the do not need to file EZ unless assets are over 250k. Am I missing anything on this? Thanks

Hi I usually manage to file 5500 forms for late adopters but there is one, could not do it. So, for 2024, when filing the 5500 forms, I know I need to attach a copy of the 2023 SB. A few things I am not clear about: 1. How do I attach a second SB? My program has a specific SB attachment option with additional sub-attachments for the SB attachments. If I do that, no issue 2. If above is not the right way then I need to attach under "other" option but with this option, I will not have sub-attachment options for SB which means all attachments have to go under "other". Any suggestions? Thanks

Good idea but not an option. so looks like stuck with 2022 415 limit, right?

No late retirement.