I have modified my indexed limit spreadsheet to now include a calculation of Social Security. All you have to do is enter your DOB and the most recent comp entered. Then enter your comp history. After that, the spreadsheet needs to be updated each year with the most recent average wage (the federal government releases it every year in late October), the latest taxable wage base, and your latest comp. I've tried some different scenarios and have been able to produce the same results found at https://www.ssa.gov/planners/retire/AnypiaApplet.html

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Safe harbor 401(k) plan: 3% non-elective contribution to all eligible participants. One of the 5% owners will be selling her interest in the company. She's over 70 and will still be working and receiving commissions paid as W-2 comp. Once her ownership is sold, the plan sponsor/remaining owners do not want to give her any more contributions. One way to do this is to change from NEC to safe harbor match (prospectively) and hope she doesn't defer. (This would "hurt" the NHCEs. Very few of them are deferring. They would perceive that a benefit is being taken away from them.) If we determine that the former owner will continue to be an HCE based on compensation, here is what I'm thinking: Amend the document to exclude HCEs from receiving the safe harbor nonelective contribution. Change profit sharing formula to new comparability -- each in own class. Give all of the HCEs (except for the one former owner) a 3% profit sharing allocation. Plan passes ratio percentage portion of the general test based on allocation rates. (It fails miserably when testing on a benefits basis -- most of the non HCEs are older than the HCEs.) Theoretically everyone except the former owner is receiving the same contribution as before. However, if the former owner fails to be an HCE in the future, this theory won't work since all NHCEs must receive the SH contribution. Does this sound correct and reasonable?

Our plan document allows us to set the threshold for automatic rollovers below $1,000. We are considering lowering the amount to reduce the number of cash-outs, which sometimes become unclaimed checks. Anyone else using a lower number? Results? Is there any number considered too low?

Under Appendix A.05(8) of EPCRS, if we correct timely within the 9-1/2 months, it says we are not required to make QNECs. Are we nonetheless required to calculate earnings on what would have been the QNECs but for the relief in .05(8)? I seem to read EPCRS as saying you have to make up lost matches, and adjust that earnings, but I don't see that you have to make any corrective contribution for the missed deferral opportunity: not the principal and not any earnings. Is that correct?

Seeking to purchase smaller medical TPA.

A participant is demanding a copy of the Adoption Agreement. She was provided will all the other required notices. Does the employer have discretion as to whether to provide the Adoption Agreement?

In a profit sharing plan that had reallocated forfeitures, three of the participants were allocated one cent in forfeitures. Does anyone have experience making a check payable to the participant for one cent? I see another participant has a balance of thirteen cents and while it is small, that isn't as bad as one cent. The small reallocation came from a relatively new participant who received their share of reallocated forfeitures, was not fully vested, and then terminated their employment, thus creating a forfeiture of that small amount. We are lucky there was no loss in the plan or their one cent could have dropped lower.