What would happen if the TPA and the recordkeeper both issue a 1099-R for the same distribution?

[Advert.]

The key to a profitable, value-based employee benefits practice - industry leading document software. ftwilliam.com's modern, cloud-based software offers seamless integration, e-signatures, batch printing, free updates, Spanish forms, and more!

A plan made a profit sharing contribution and failed the compensation ratio test. The allocation is comp/comp per the plan doc. I believe I can still run a rate group using test using 415 compensation without having the cross test language in the plan document. Correct?

I have a client that recently converted S Corp (solely owned) to a partnership LLC (store manager of 16 years). This happened 1/18/2018. They had been contributing to a Simple IRA -- 3% match. Store manager (who has been taking a payroll check of $65,000/year) just told me that she is only taking draws -- that she stopped getting a payroll check upon conversion 1/18/18. She is telling me that company tax preparer has no issue with her not taking a paycheck and that she needs to convert company plan to something that would allow her to make pretax contributions without having to take a paycheck (earned income)? They haven't hired anyone else to fulfill the responsibilities in the operation. Any ideas? Can the partners make pretax contributions and company match 3% on draw? Is there something I'm missing about her moving to partnership status, stopping the $65k/yr earned income via payroll and only receiving a draw of the exact $65k and not having an explanation of who is the workload?

I have read, "a 403(b) plan that provides for employer contributions cannot be a non-ERISA 403(b) plan." Can a church plan, which is an ERISA exempt and non-electing 403(b) plan, provide for employer contributions? If so, how is it that the two statements conflict? Any helpful cites?