A client acquired a company with a SIMPLE. We're now outside of the transition period. The SIMPLE was not terminated. There is no other 401(k) plan in place yet, but the client wants to start a 401(k) plan. For 2019, could the client's employees (only four) just begin contributing to the SIMPLE IRA? Or, because it's already January and because very few contributions have been made so far to the SIMPLE IRA, should I suggest the client go through VCP and claim an Employer Eligibility Failure for 2019 and state that all contributions cease the day after the NEW qualified plan is signed into place? Would the IRS just approve this or would the January contributions be subject to repercussions as a result of the SIMPLE becoming disqualified? Anybody see another approach?

Small company with a 401(k)/PS plan as well as a pension plan. Pension plan is written as an offset so that 100% of the NHCE benefit is provided as PS in the defined contribution plan. The two owners (husband and wife) have their benefit in the DB. Would this plan be PBGC covered? It does not meet the small service professional exemption. Would the answer be different if it wasn't written as an offset, but as a standalone plan that is tested with the profit sharing plan? (Assuming 401(a)(26) passes, of course.)

Plan A and Plan B (profit sharing plans) are in a controlled group (OK, their respective employers are). I'm running rate group testing with cross-testing for both plans. Plan A has an NRA of 62 and Plan B has an NRA of 65. I can see in section 1.401(a)(4)-12 of the regs that the rule is to use the latest NRA available for testing (in this case, 65), but the language of the reg seems to speak in the context of a single plan. What if one has 2 separate plans?

Participant enrolled 2 employees early in 401k plan that uses a 3% nonelective safe harbor. Do they refund 401k or can they make 3% non elective safe harbor and keep 401k? This is the only employer contribution to plan.

My client has three owners. One, who owns more than 5%, has a son-in-law working there. Is the son-in-law attributed to own the father-in-law's ownership? The daughter is not an employee.

A very small SH 401(k) plan has five eligible participants. Two are deferring, one HCE and one NHCE. Two other HCEs are not deferring, and one (now deceased) NHCE did not defer. In 2018 the plan sponsor made the SH match every pay period (by choice -- not required). The NHCE who was deferring received a few dollars too much match as of the end of the year. The extra amount equals 0.07% of the NHCE's annual compensation. So a miniscule profit sharing contribution made to one NHCE is causing the plan to fail to meet the exemption to the top heavy rules. What are the options for addressing this?

We're planning to upgrade from Relius version 2018.1.0 to 2018.2.0 but we're facing some challenges with the GetPlanData call in Relius Connect. It's failing but we don't know why. It was working in 2018.1 but it's not working in the 2018.2 test environment. Has anyone else experienced this problem?

Suppose a safe harbor match, with a per payroll match. Deposit requirement for match on deferrals made in a given quarter is therefore by the last day of the following quarter. Reasons don't matter, but payroll system is such that for most employees, the match is actually deposited per payroll. For other employees, system won't handle it, so deposit of their safe harbor match is proposed to be made monthly or quarterly. This seems to me to fall under the "other right or feature" category in 1.401(a)(4)-4(e)(3), and therefore subject to BRF testing. And so, as long as these employees represent less than the 50% safe harbor percentage, it would pass. Other opinions/thoughts?

Employer is negotiating with a prospective new hire. Is it possible to amend a prototype document to allow this individual to enter immediately so long as the individual is not or will not become a Highly Compensated Employee? It's a safe harbor 401k.

Company creates digital media for distriubtion on websites. Custoemrs pay a subscription to watch a tutorial on line regarding how to do a particular task. Let's say for example it was cooking. Does that sound like it would be a service business?