JGordon

So I have a client where the owner earns wages/self employment income from all 3 companies (a construction company, an architectural firm, and a real estate firm) in a controlled group. This is the first year that all 3 companies have adopted and become participating employers in the SHNEC 401(k) Plan. The construction company was the original plan sponsor and where the owner has always (and did this year) taken his deferrals. My question then is whether the owner will end up with a SHNEC in each company since he has income from each company and is a participant per the document and participating employer agreement for each company? I know for testing purposes he wouldn't have to but to comply with document provisions it certainly seems as if he does. There are also a handful of overlapping NHCEs in the 3 companies each of whom receives income from each company - I assume they would also each receive a SHNEC for each participating employer. Am I thinking of this wrong? I certainly don't think this is the result the owner was anticipating when he and the advisors decided to have the other companies adopt the plan (especially as it relates to the handful of NHCES). Thank you.

I have a Owner Only Cash Balance Pension Plan. Plan was set up 12/28/2018 with effective date 1/1/2018. 2018 required funding was $80,486. However contribution (made 9/13/2019) was $60,000. So we have an minimum funding issue out of the gate. Excise tax filed and paid (I believe). 2019 there is 0 cash flow to fund benefit and will result in another minimum funding deficiency for 2019 (this was known as of September, 2019 so is not COVID-19 related). Have already reduced the benefit for 1/1/2020. This Plan should have never been set up and completely fails the permanency requirement. So my question here is whether 412 funding requirements apply to a disqualified plan? Can I get the plan disqualified on permanency, terminate it and avoid a 2019 minimum funding excise tax on top of all the other tax?