We have a client that wants to change the allocation method of their recapture account effective 12/31/2018. Currently the service agreement (not addressed in the plan document) states that after expenses are paid from the account, the account will be reallocated pro-rata based on account balances. We have not yet seen a copy of the ERISA Section 404(a)(5) disclosure to see if it contains such details. The client wants to change the reallocation method to be based on the investments of the participants and whether those investments generate revenue sharing income. If the allocation method of the recapture account is not included in the initial 404(a)(5) disclosure, can the employer change the allocation method without a 30 day change notification to participants?

I realize that an LLC can be taxed as either a partnership/sole proprietorship or as a corporation. What about a PLC? Can it be taxed as either one as well, or can it only be taxed as a corporation?

The employer has 200 participants and 1 HCE (the CEO) in a 401(k) plan. They ran their 2017 ADP test; it failed; they processed the ADP refund and forfeited the related employer matching contributions of the 1 HCE in March 2018. Late in the 2018 year, they determined that the ADP test was run incorrectly--ineligible employees who were not participants were included in the ADP test as 0% deferring. As a result, the plan would not have failed the ADP test by as large of an amount and the HCE received too large of an ADP refund. The HCE was distributed in 2018 more of his salary deferrals than he should have been (and more of his employer matching contribution were forfeited than should have been if the ADP refund were less) for the 2017 plan year. (As a side note, the board of directors of the employer gave the HCE additional comp during 2018 to make-up for the HCE not being able to fully defer into the 401(k) plan and receive the full resulting employer match.) I believe the ADP test must be rerun correctly so that a correct ADP test is maintained in the employer's files (even though we know that it will not indicate additional refunds that must be made, but an overdistribution of refunds). If so, what's the employer required to do?

A plain vanilla Profit Sharing Plan is not subject to successor plan rules because there are no 401(k) and or other qualified contributions in the plan, correct?

A plan has 401(k) with safe harbor on a mutual fund recordkeeping platform, and the profit sharing in a pooled account. Participant P has a current balance of $200K in his individual accounts and $50K as of the latest valuation in the pooled account, and the segregation amount is slated to be $130K. For the sake of ease, obviously, it would be awesome to pay out the QDRO from the platform. The attorneys are writing that into the QDRO. Do they have that right? Isn't that the Plan Administrator's authority to decide where to pay the QDRO from? As long as the dollar amount is satisfied, that should be all they care about, I'd think.

Can someone clarify if the partner/member contribution for the deferral + match cannot exceed the 402(g) limit?