A CPA firm went from being a PC to being an LLP during 2017. One partner bought out the other partner and the partner who was bought out has retired. The remaining partner received compensation that will be on a W2 for 2017 for him, but also had some income on a K1. I thought I read somewhere that in such a case only the W2 compensation is used for testing, employer contribution calculations, etc., but now can't find anything on it. Is that true?

[Advert.]

Our ERISA experts will cover Washington update, 403(b) restatement, IRS disaster relief, QDROs, RMDs, EPCRS , final fiduciary regs, lost participants, Ask the Experts Q&A session, and more. 19 CE hours. Register by January 5, save $150. Register now.

A participant leaves one adopting employer under a Multiple Employer Plan (MEP) for another adopting employer under the same MEP. The participant has the 401(k) balance transferred from the first group to the second group. Assume that the employers are not a controlled group or an affiliated service group and that their only nexus is that they are a part of the MEP. Would the second group need to include this balance in its top heavy ratio?

Qualified plan -- now a 401(k) -- was adopted in 1973. In 2017, a separate (related) company was set up, and a joinder agreement was signed to allow employees of the new company to participate in the plan. Can sponsorship of the plan be transferred to the new company? The old company will not have employees beginning in 2018.

Company and its CEO have a provision in his employment contract that requires him to get a (sizable) contribution to the company's 401(k) plan for the current calendar year. The company does not otherwise offer a matching, profit sharing, or QNEC contribution. I'm waiting to receive the plan document to confirm, but I don't see how this could pass nondiscrimination testing. I'll probably have the company revise the employment agreement contract so that the specified amount can be paid another way, but not in the 401(k). Ever seen this kind of thing?