Entity A sponsors a retirement plan. This employer is now part of a controlled group due to common ownership with Entity B. Entity B is a newly formed entity -- not a result of a merger or acquisition. All of the conditions of the grace period are met. Does the grace period only apply to mergers and acquisitions, or does it also apply to newly formed entities?

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Let's say an owner who is over 50 deferred $25,000 in 2017. So, the $1,000 is excess deferral and will be refunded by April 15, 2018. Would the excess $1,000 be counted in the 415 limit? So, if the owner wanted to max out with a Profit Sharing contribution, would the owner be able to put in $36,000 or $35,000 in 2017?

Are corrective distributions reported on the Summary Annual Report? If so, do you include them with the distribution amount or should the amount be reported some other way?

A 401(k) plan provides for 100% vesting upon becoming "disabled," defined as "a physical or mental condition that makes him unable to engage in any substantial gainful activity and that can be expected to result in death or has lasted or can be expected to last for at least a twelve-month period or results in death." A determination of disability is made by the plan administrator. The plan sponsor desires to amend the plan to change the definition of disabled to mean a disability as determined by the Social Security Administration. Would this amendment constitute a change to the vesting schedule under Code section 411(a)(10) that would require an election to be offered to those participants who have at least 3 years of service? (As a side note, the Social Security definition of disability seems to align with the current definition of disability in the plan, so arguably this plan amendment would affect only the identity of the party who makes that determination.)

A 401(k) plan uses base compensation of "wages, tips, and other compensation as reported on W-2". Bonuses are included for deferral calculations. Bonuses are excluded for match contribution calculation. Plan document says to use 414(s) compensation for ADP/ACP testing, but doesn't define 414(s). Do I use the total base OR total base less bonus for ADP/ACP?

On March 5, the IRS announced a revised (downward) HSA contribution limit of $6,850 (a $50 reduction from the previous limit) for participants with family coverage. Participants with self-only coverage are not affected. See:

https://www.irs.gov/pub/irs-irbs/irb18-10.pdf

Corporation A sponsors a 401(k) plan. Corporation B sponsors a SIMPLE-IRA program. Corporation A is purchasing Corporation B in a STOCK sale, not an asset sale. Can the employees of Corporation B participate immediately in Corporation A's 401(k) plan? I don't think so. Although there is the IRC 410(b)(6)(c) transition period and the 408(p)(10) period available for continuing to run the plans separately, the corporation still exists because this is a stock sale rather than an asset sale, and the SIMPLE IRA can't be terminated mid-year. If it were an asset sale, then no problem. Agree?

I have a plan that during 2017 had 2 partners. One partner retired mid-year. The plan sponsor then went from being an LLC to a PC. The remaining partner received a Schedule K-1 and a Form W-2 for 2017. Not sure if I should combine the 2 for the safe harbor calculation, or just use his W-2. The retired partner is just getting a K-1.

Two separate entities created a 501(c)(3) Joint Operating Company (JOC), which essentially is a virtual merger with no transfer of assets. There are no employees of the JOC. Expenses of the JOC are invoiced to the entities. The entities share no common ownership. They want to set up 1 plan and align their other benefit programs, create efficiencies in management, finance, etc. Company A has a church 403(b); Company B has a church 401(k). Could the JOC sponsor a plan under which the 2 separate entities are "adopting employers"? Could their existing plan assets be merged into this plan? (I know the Treasury Department hasn't issued guidance on church 401k/403b mergers resulting from the PATH act, but it's expected sometime this year). It seems safer to keep both plans separate and align the plan design previsions across both plans. I would imagine that the JOC could be set up as a PEO and sponsor a plan, but I think (for simplicity) keeping both plans separate is probably best. Agree?