We filed a VCP for late RMDs in May. Case has not been assigned. Waiver of excise tax requested. B what should the plan administrator tell the distributee regarding his income tax return, which is due April 15, 2018? It's doubtful we'll have an answer from IRS by then. We're considering giving him a letter to attach to his tax return.

Profit Sharing Plan has a last day rule for allocation eligibility. Employer wanted to make a flat 3% contribution to all employees, so he plugged a formula into payroll and contributed 3% to each participant every pay period. A participant terminated during the year, and therefore didn't meet the allocation requirement to receive the profit sharing contribution. The profit sharing was paid out with his distribution. The employer was not able to recover the excess distribution, so he will make a contribution to put the plan back in the place that it would have been, had the error not occurred. As I understand it, the employer can deduct the corrective contribution in the year that it is made. Is the original contribution made to the employee that didn't meet the allocation requirements deductible? It seems that it's a kind of double-dipping if he deducts the contribution to the participant and also deducts the corrective contribution.

Can someone please help me find reference to guidance that I have heard of that allows an employer to not combine two related companies into a Controlled Group for the purposes of discrimination testing in the year of acquisition, and perhaps even the year following acquisition?

Has anyone had any experience with the following (or similar) scenario? Plan effective 1/1/18 with profit sharing provisions. Elective deferrals are added effective 3/1/18, but plan sponsor wants to offer the 3% employer non-elective safe harbor contribution effective 1/1/18 (i.e., for the whole plan year even though deferrals are only allowed for 10 months). This hardly seems like it would violate anything as they're being more generous than necessary, but I cannot find any authority for allowing such an arrangement.