Barry Levy

There is no magic here. Generally, a Solo K is a 401(k) plan where the only employees that are eligible are the owner(s) and spouses (Note: This is not like stock attribution where other certain family members are considered HCEs). The terms of the plan dictate the eligibility and entry date provisions. Typically, the existing plan would be amended prior to other employees meeting eligibility. We alway mentor our clients to set up the plan assuming other employees may become eligible. We do this even when the employer states "we will never hire any employees" or " no one will ever work over 1,000 hours. There is no downside to setting up the plan in that manner, Experience and qualified plan wisdom prevails.

I believe for self correction, under these facts and circumstances and assuming a 12/31 PYE, the plan must be corrected by 12/31/2022.

Special rules apply if termination is for 410(b)(6)(C) transaction (e.g., merger, acquisition, etc.). • Result: – Plan gets to retain safe harbor status – No 30-day notice mandate and – Still must fund contributions to termination date.

The best I can add is to listen to what an actuary colleague often repeated to me; "Don't make the client's problem your problem." It may be best for all party's to have the Plan Sponsor engaged a qualified ERISA attorney.

DC plan provisions for hardship withdrawal - "Safe Harbor" hardship. Ms. Jones wants a hardship withdrawal for the purchase of her primary residence. The catch is the home will be in her husband's name. Is this allowable?

That is, the Plan Sponsor's federal tax return's extension.

I am not sure if this has been mentioned. The 5500 filing can rely on the Plan Sponsors extension (if filed) if the plan year and fiscal year are the same.

You are correct. If you are an ASPPA member you may want to contact the Government Affairs Committee. I am confident they would get your find to the right people.

First. I am not an attorney nor am I giving legal advice. It is my understanding, enrolled or not, paid or not, an individual knowingly preparing a false return may be violating federal law and subject to federal prosecution and ensuing penalties. A very experience and pragmatic seasoned actuary told me many times do not make the client's problem your problem.

For cross-tested plans I believe each eligible NHCE must have an allocation rate that is not less than the lesser of 5%, or one-third of the allocation rate of the HCE with the highest allocation rate.

Thanks Mike. I hope all well.

Safe K plans can contain provisions where HCEs are not allocated a Safe Harbor match. Are one or both of the following design allowed? 1) HCE Safe Harbor match is limited to $3,000 ($3,000 is an example) 2) Non-Shareholder HCEs match is limited to $3,000 Thank you

I recall years ago the IRS stating that if there is a trail and timing you as you have presented it is a non-issue.

There may be a fiduciary issue being that ERISA is federal law and Marijuana remain illegal at the federal level.

The plan must be up to date in writing as of 12/31/2019. another issue is that assets should be paid out within 1 year of the effective date of plan termination. The plan may now be considered "ongoing" due to not timely being paid out. At minimum at this point it would be a good faith best practice to amend and restate.

What is the plan's definition for compensation with respect to allocating contributions?