A plan decides upon a profit sharing contribution for 2017 that allocates a different dollar amount and percentage to each participant. This complies with the cross-tested formula in the plan document and passes testing. When preparing the notification from the employer to the Trustee (see Padilla memo), do we have to list each employee separately? Can we refer to an attachment, which would be our allocation spreadsheet? Alternatively, can we combine the 3% safe harbor and profit sharing when referencing the amount on the trustee notice? This would make it much easier for this plan. They basically were trying to allocate a set dollar amount to certain employees, but it is a combination of the 3% Safe Harbor and profit sharing, so the profit sharing is all over the board due to differences in compensation.

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A participant is entitled to a contribution to his IRA under a SEP arrangement, but he terminated long ago and is not responding. What to do?

Employer stock is held in a KSOP. Is Net Unrealized Appreciation treatment available in 2018 if the participant terminated employment in 2015 at age 67 but received a small ADP testing refund in March, 2016 and no other distributions have been processed? If the participant wanted to elect NUA treatment, should he have elected to take a lump sum distribution of his entire account in 2016 (the year of the small refund) because his 2015 separation from service was his triggering event, or is NUA treatment an option available in 2018?

A client with a controlled group of companies recently created a new company and transferred several plan participants to the new company. These employees were allowed to continue to participate, but the new company is not an adopting employer. The document specifies that "an individual who becomes employed by the Employer in a transaction between the Employer and another entity that is a stock or asset acquisition, merger, or other similar transaction involving a change in the employer of the employees of the trade or business shall not become eligible to participate in the Plan until the Plan Sponsor specifically authorizes such participation." We've been advised that this must either be corrected with a VCP filing, or by returning the ineligible contributions. I'm wondering why this couldn't be self-corrected with a retroactive amendment under the "Early Inclusion of Otherwise Eligible Employee Failure." Meanwhile, the client continues to withhold deferrals and is not ready to make changes to the plan yet...

Based on the CPI value released today (and using the values for Mar-Apr-May) the rounded/actual 2019 limits would be:

Catch-up: $6,000/$6,364

Deferrals: $19,000/$19,092

Comp: $280,000/$281,900

415: $56,000/$56,380

DB limit: $225,000/$225,520

Key Employee definition: $180,000/$183,235

HCE definition: $125,000/$127,376

An employee of a sponsor of a 401(k) plan fraudulently caused deposits, in excess of what was deferred, to be made for the employee and several others in a 401(k) plan. Now that this has been discovered, can these contributions be refunded to the plan sponsor?