stephen20

Can anyone tell me the impact on 401k plan between Related Employers & Multiple Employer Plan? Sometimes, I've found mark on Related ER in the plan document, some times marking on Multiple Employer plan. Thank you in advance!

What is the exact rules/law for first year participant count in 5500-SF submission? Thanks in advance.

Deferral, Profit Sharing , Safe Harbor Non Elective 3%. No other or special contributions

At the year end. thank you for the advise.

While work a plan I have notice that Deferral & Match eligibility requirements are follows: -21 Age, 1 Years of service & Semi Annual whereas, PS eligibility requirement is immediate (no age or service required) as per plan document. Profit sharing eligibility is more generous compared to deferral requirements. Usually, I've found relax eligibly for 401k Deferral contribution and little bit tough eligibility to get profit sharing contribution such as - 21 of Age+ 1 Years of service+ 1000 hours, sometimes last day and 1000 hours. Above scenario is new to me and never dealt with before, I'm totally confused and It supposed to me discrimination not to give deferral opportunity but giving more earlier opportunity to get PS. Is it allowable to give priority of getting profit sharing contribution rather delay/ hard rules for deferral contribution? Please share your thoughts on this and provide related laws/regulations/reference (if any) to be sure about this dual eligibility. Thanks in advance.

Need Help!!! I’m working on a plan and client wants to max out 1 owner (audit plan). Plan demographics as follows: Total Employees- 210 Participants – 110 (who has entry date) Plan entry requirements: 18 age, 1 year of service, Semi-Annual Entry Profit Sharing Method: New Comparability/ Grouping Allocation condition to get Profit Sharing: Last day and 1,000 working hours. Plan is not TOP HEAVY for 2020 Plan Year. ****Among 110 participants, 30 employees did not meet 1000 hours and few of them terminated before 12/31/2020. Current Year’s contribution 2020: Deferral, Safe Harbor Match, Profit sharing (max owner, minimum % to pass others (no Safe Harbor Non-Elective contributions) Here, Highest Key % - 10.11% (PS and Safe Harbor Match) Question: Do I need to provide minimum gateway to 30 participates who did not fulfill last day and 1000 hours to pass new comparability test? Thanks in advance!

Please Mr. David got compensation in 2019 $ 140,000 and in 2020 $480,500. If Mr. David CEO of that organization, then should I count him as key employee (no ownership %) but he is mentioned as CEO (officer)? How should I count officer based on compensation (no ownership %)? Thanks all for your help.

There are three threshold for key determination- Key Employees 1. An officer of the company earning $180,000 or more annually; 2. 1% owner with a salary of $150,000 or more; and, 3. 5% (or more) owner regardless of salary. Situation 1: Mr. David got compensation in 2019 $ 140,000 and in 2020 $480,500. Question 1: Do I need to consider him as KEY Employee in 2020 plan year (plan year end 12/31/2020)? Situation 2: Mr. David Mr. David got compensation in 2020 $485,500 with 1% ownership. Question 2: What will be his key status for 12/31/2020? Thanks in advance.

I'm working on a plan with 109 employees. Among 109 employees only 48 employees entered into the plan (Plan Requirements:- 21 Year age, 1 Year of service) and received Safe Harbor Non Elective Contribution. Should i use Form 5500-SF or 5500 Large? What is the parameter for this plan 48 eligible employees or 109 employees? Can anyone explain 100 participants rule for 5500-SF filling, i'm confused? Thanks in advanced.

Thanks for your insights.

Thanks for your insights.

Plan Entry Requirements are: 21 year of age, 1000 Hours, Entry-01/01 & 07/01. Break in service- 5 Mr.xz is employed on 01/05/2018 and terminated on 08/29/2018, in the mean time he did 1000 hours. After that he rehired on 09/11/2019.. What will be his entry date? I'm so confused about rehired. Please guide me on this issue.

Thank you so much.

Hello! I have two queries, hope you guys can help me out. 1. If a participant has only deferral in plan, does he/she eligible for gateway minimum (No SHNE or TH minimum) ? 2. Which contribution will satisfy or cover gateway minimum (plan has no SHNE) Employer match/ SH Match? Thanks!