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Trying to do final ADP test for a terminating plan. Short plan year 10/1/2020 to 2/28/2021. However, I am coming off of a short plan because of plan year end change. 6/1/2020 to 6/30/2020 ***meant 7/1/2020 to 9/30/2020**** By experience, I know of one employee that is HCE because he has been HCE last several years. There may be one more. I think I am looking for compensation for the time period of 10/1/2019 to 9/30/2020 to determine if HCE, correct? And being that the plan year started in 2019, I'm looking for compensation over 125,000, correct?

Have a plan that is wanting to change their fiscal year end from 6/30 to 9/30 and I have a question about entry dates. 1 year, 1000 hours service and semi entry (7/1 and 1/1) are eligibility requirements. (Entry dates will change to 4/1 and 10/1) I understand that eligibility computation periods are created from 7/1/2019 to 6/30/2020 and 10/1/2019 to 9/30/2020 because of the short plan year. I understand that the plan may not use the short plan year as the computation period and prorate the hours of service requirement, unless the overlapping period alternative is provided to employee who cannot satisfy the proration requirement. This alternative is not the subject of my question at this point, but I know it's available if employer would like to go that route. 1. Employee A has been excluded from the plan for several years because he could not satisfy the 1000 hours requirement. He is on the 1000 hours watch from plan year to plan year. However, the employee went full time May 2019 and is expected to satisfy the 1000 hours requirement during 7/1/2019 to 6/30/2020. If there was no plan year end change, the employee would be eligible 7/1/2020. It doesn't seem right to me that the employee have an entry date of 10/1/2020. Is there an implied entry date of 7/1/2020 still because of the eligibility computation period of 7/1/2019 to 6/30/2020? I'm missing something..... 2. What pitfalls should I be conscious of?

I have a 3% nonelective safe harbor 401(k) Plan that is terminating effective 10/31/2016. The safe harbor is to be calculated based upon compensation from January - October. This is due to a business acquisition, so safe harbor status is maintained. There is one owner who receives Schedule C income. Safe Harbor has been deposited for the 3 non-owner employees throughout the year. The owner has taken $10,000 distributions periodically and the bookkeeper has made 3% safe harbor deposits based upon these amounts to the owner's account. The owner's actual earned income for the year will not be determined until sometime in the first quarter of 2017, but we would like to have all assets paid by 12/31/2016 to prevent another plan year. So...how do I calculate the owner's safe harbor contribution from 1/1/2016 through 10/31/2016? 1) Treat him as having earned $0. This would be a problem because, not only did he have safe harbor deposits, but he also deferred during the year. 2) Have the CPA estimate his earned income from 1/1/2016 through 10/31/2016 and calculate the safe harbor for the owner based upon this estimate. Any other options? Has anyone dealt with this conundrum? Thank you!

Employer with FSA wants to amend their plan year to match the insurance coverage year. This would result in a short plan year. What implications does this have for participant salary reduction elections? Should the election be pro-rated to match the short year? Should salary reductions be decreased? Thoughts?

We submitted a form 5308 to the address provided on the instructions included below and it has been returned twice. Does anyone have the proper address? Thanks! Internal Revenue Service, Commissioner, TE/GE, Attention: SE:T:EP:RA, P.O. Box 27063, McPherson Station, Washington, DC 20038,