metsfan026

That's definitely possible, but as long as the investment options are the same and they are tested together you agree there are no issues? I just want to make sure I'm not overlooking anything (these questions are all the same points I had already brought up to them)

I'll be honest, I'm not 100% sure what their reasoning is. I told them they can't have investment options that no one else had, and they understood that.

I don't disagree and that's why I'm questioning it. If they want to setup it up with te same benefits and willing to make the same opportunities available to the rank and file, then there shouldn't be an issue though? It seems odd to me, but they are pretty clear they want to have a separate plan. I've said they all have to have the same opportunities, which they seem OK with.

I agree, the situation seems really odd to me but this is what I'm being told (and I have questioned the situation). At the end of the day, if they do separate 401(k) Plans for themselves, as long as they aren't getting benefits that the employees under the main plan are getting, would there be an issue?

We have a potential client where they have a company 401(k) Plan, but the two owners technically aren't on payroll. Instead they are paid via 1099. Can they setup their own individual 401(k) instead of participating in the company plan? Is there any testing issues if they opted to go that route? Thanks in advance!

Right, so they can technically make a larger contribution and just not get the deduction for it?

I know the general rule is that an employer can only contribute up to 6% into a 401(k) Plan when they are also doing a Cash Balance Plan. I just wanted to confirm that the 6% limit also includes the Safe Harbor Matching contributions that they are currently making? So if they are making a Safe Harbor Match, that's going to severely limit (or possibly eliminate) the opportunity to make a Profit Sharing Contribution as well? I think I know the answer, I just wanted to be 100% sure I wasn't confusing myself. Thank you!

We have a 1 person Cash Balance Plan (owner only) that we are taking over. I just want to make sure that they have compensation defined correctly in the Plan Document. The choices given are: 1) W2 2) Code 3401 3) Code 415 Safe Harbor Thanks in advance!

Thanks Paul. If someone has 2 years of service though, we have to maintain them as 20% vested correct? We can't take that away from them since they earned it under what the document said?

Normal Retirement should be 65 (it was setup as 62) Vesting is going from 6-Year Graded to a 3-Year Cliff I'm not sure the NRA has a big impact on anything. I guess we need to give everyone who earned vesting during that time that vesting, but make them 100% after 3-years?

We are taking over a client whose TPA messed up the original plan setup and didn't put in the correct provisions for certain things (particularly Normal Retirement Age & Vesting Schedule). The question is, how far back can we go to correct these things (the plan is roughly 2 years old, the client just didn't notice the error until now)? Or can we not do them retroactively and just have to do it moving forward. I'll be honest, this is one I've never encountered so I wanted to be sure we did it correctly.

Thank you! I thought we didn't have to include it, but then I started second guessing myself. Very much appreciated

I tried to find this, but couldn't seem to. If an owner is RMD eligible, actively working and receiving a Profit Sharing contribution for his 12/31 balance do you use: 1) The Investment Balance 2) The Investment Balance + any Receivable contributions made after the close of the year I just wanted to be 100% sure, as I'm started to confuse myself. Thanks everyone!

Is there a limit to the amount of rollovers a participant can take, using the 60-day window to repay the distribution/roll it into an IRA? I believe it's limited to one per year, but I just wanted to confirm. Thank you!

What is the required time necessary to amend a matching contribution? Currently it is a mandatory match, but they want to switch it to discretionary (it is not a Safe Harbor Match). Do they need to give more than 30 days notice? In other words do they still have time to make the change for 2026?