Participant over 59-1/2 requested an allowable in-service of 100% of his vested account balance. He began contributing Roth in January of this year. How is the 1099-R coded for the Roth portion 1B or 2B? These are the Code options provided by the vendor's online system. I'm thinking that because the Roth contributions were not in the Plan for 5 years he will have to pay tax on the Roth earnings and it should be the 1B Code. The fact that he is over 59-1/2 gets him the waiver for the 10% premature withdrawal penalty on the earnings, so perhaps the 2B Code?

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We are taking over 5 companies, each with their own plan, which are a controlled group. Companies A, B and C are SH with a SH enhanced match of 100% up to 6%; Company D has a stated match of 100% up to 4% and Company E does not have a match. All plans have the same year-end. I think I understand testing for the 410b and the 410b fails for Companies D & E.

• Company A (SH) can be run separately if they pass 410b includes other SH plans B/C and D/E as not benefiting.
• Company B (SH) can be run separately if they pass 410b includes other SH plans A/C and D/E as not benefiting.
• Company C (SH) can be run separately if they pass 410b includes other SH plans A/B and D/E as not benefiting.
• Company D (stated match) can be run separately if they pass 410b includes E (I think this can be done) and A/B/C as not benefiting.
• Company E (no match) can be run separately if they pass 410b includes D (I think this can be done) and A/B/C as not benefiting.

I haven't tested using the ABT YET, but I'm doubtful. So if it does fail the ABT test, how does the ADP-ACP test work in this case? Are Companies D and E tested as one, for ADP-ACP purposes? Or are they tested separately? Companies A, B and C are SH so they would not be included. Oh, and no, they have not been tested as a Controlled Group in the past so this is something else we will need to fix. If I'm incorrect in any of my thinking please set me straight.