metsfan026

Previously we had been using the rates from the Funding Table 2A (Post-ARP/ILJA 25-year segment rates) for our calculations. This year it was: Tier 1 - 4.75 Tier 2 - 4.81 Tier 3 - 5.50 However, I believe those rates are no more (or maybe I'm wrong). What are we supposed to use in their place? Thanks in advance!

What I've always done. Thanks!

Having a debate with someone in my office. For the participant count on the Form 5500, if someone becomes eligible do you include them for the Beginning of the Year count (for Active and Total Participants)? Or do you not, so the number of participants at the beginning of the year matches the number for the ending of the year of the previous Form 5500? I know it's minor, just want to make sure. Thanks!

We have a plan that's suddenly terminating in a few weeks. One of the participants have an outstanding loan that they want to payoff, prior to taking a distribution. Does that have to be done prior to the Plan Termination, or can they pay it off via personal check a few weeks after the Plan Termination date? This is one I haven't run into before. Thanks in advance!

The document includes it, but the client says they didn't pay any. So the total salary is under the HCE so that what it is? I just want to make sure I'm understanding

This is a situation I've now encountered, so I wanted to check. - Participant has no ownership stake in the company. - In 2023 they made about $200k, therefore they were considered an HCE in 2024. - In 2024 the participant missed several months due to being on active military duty, thus earning about $75k So, my understanding is that for 2025 they would not be considered an HCE. Is that accurate? Thanks in advance!

We have a few Plans that were adopted in February or March of 2026, as of December 31, 2025 (as allowed under Secure 2.0). Should we be filing extensions and Form 5500 for these Plans? I know under Section 201 of Secure 2.0 it technically isn't required, or is that just for Plans adopted after the extension date? I don't want to miss anything, or file an extension if we aren't supposed to. Thanks in advance!

Good morning, we just took over a plan with a unique Safe Harbor formula and I just wanted to make sure it was acceptable. The formula is: 100% of the first 1% deferred + 50% of the next 5% deferred So, you basically get 3.5% if you defer at least 6% (instead of the typical 4% of comp if you defer at least 5%). Is this an acceptable formula? Just not one that I've seen before, so I wanted to double check. Thanks in advance!

We'd use everyone's salary for the 6% cap, correct? So technically everyone's salary is eligible, so it's 6% of all of the eligible compensation for the Safe Harbor + Profit Sharing limit? I just want to make sure I'm thinking it through correctly

Thanks. That plan was in place already, obviously the recommendation is to go to a 3% Safe Harbor but they may not want to take it away

I'm running into a problem and just looking for some insight. We have a Plan that has immediate eligibility for the 401(k)/Safe Harbor Match, but we are looking to do 21 & 1 year for the Profit Sharing & Cash Balance portions. I know the Safe Harbor Match (for everyone) gets factored into the 6% maximum deductible contribution for the employer contributions. That said, for the people who are eligible for the 401(k)/Safe Harbor, are they factored into the rest of the testing for the PS/CB? For instance, when we are doing the rate group testing are those people factored in? Or do we only test for the people who are eligible for the Cash Balance Benefit? I hope that makes sense. Just trying to make sure I have all of my bases covered

I'm 99% sure I know the answer, but I wanted to be 100% sure. If a participant is on maternity leave at the end of the year, are they still considered employed on the last day of the Plan Year in order to be eligible for a Profit Sharing contribution (the participant had worked over 1,000 hours prior to going out on leave)? Thanks in advance!

Right, but technically the participant isn't employed on the last day of the Plan Year so they shouldn't get the Top Heavy contribution. I'm problably overthinking this though

We have a client who has an employee who is only receiving severance payments and no other salary. I just wanted to confirm that all of that compensation is ignored, and therefore they wouldn't get any type of contribution (Profit Sharing, obviously not since they are under 1,000 hours, but a Top Heavy contribution was my only thinking). Thanks in advance.

Thanks! And, just so I'm clear, the Safe Harbor Match doesn't override the Top Heavy requirement in this case due to the presence of the Cash Balance Plan? (And, unlike the 3% Safe Habor, the Match doesn't apply to this Top Heavy requirement so participants who are getting the match will also get the full 5%?) Sorry, I just want to make sure I'm not overthinking this. Thank you!