MaryMcConnell

Thanks so much!

It is my understanding that a person who "opts out" (irrevocable election) is not an excludable employee for purposes of the coverage test, and is treated as not benefiting. There is only one NHCE in the plan and this person signed an irrevocable election. (Would have been eligible otherwise.) Coverage fails. Plan document allows us to bring in enough NHCEs to pass coverage. Can we still give the opt out person an allocation to pass coverage?

Sounds like there was a "missed deferral" opportunity. Booo

Employee hired 10/3/2016. Term’d 3/1/19. Plan effective 1/1/20. Rehired 3/29/21. Service requirement is 1,000 in 12 months. Is she eligible to enter immediately upon rehire date? (i.e. allowed to defer and receive safe harbor non-elective contributions). Plan does not apply one year hold out rule or break in service rule. I know that if the plan had already been in effect (and if she met the age/service requirement prior to her term date) she would be eligible to enter immediately. The effective date of the plan is throwing me off. (She term’d before the plan was put in place.) Although the plan document says that all service is counted. So I think she would be eligible immediately??

Resurrecting this post from 100 years ago…. I have an instance where a one-participant plan filed 5500 SF for 2018 and 2019, but the box WAS NOT checked for either year. Ooopsie. Number of participants listed in section 5 (beginning, ending, etc.) was “1”. Can I now switch over to an EZ for 2020? Will a letter be generated by IRS looking for an SF filing?

Thanks for the input!

If a plan is terminating effective 8/31/2021, does the pre-approved document still need to be restated for Cycle 3? I know that it would need to be amended for CARES/SECURE, but is the restatement required?