An active employee participating in a 403(b)(9) church plan wants to defer his unused vacation time to the plan. I know there is a provision (Rev. Rul. 2009-31) that allows for active employees to have their unused PTO contributed to a 401(k), but I did not find such a provision for 403(b)s. The only thing I could find in respect to unused PTO being contributed to a 403(b) is via a post-severance contribution (IRS Pub. 4482). Does anyone know if a 403(b) plan can allow an active employee to contribute (either via deferral or arrangement with employer for a non-elective contribution) unused vacation and sick pay to the 403(b) plan?

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Husband and Wife each have their own 401(k). They are a controlled group due to a minor child. In completing their 5500-EZs, the participant count should be 2 because the other spouse is eligible to defer, but I do not combine the assets because they are separate pools. Correct?

[1] How does one convert a 412(e) plan to a non fully insured plan? Can it be accomplished simply by not making premium payments? [2] If a fully insured plan is frozen for a year can it be resumed or does it lose the level premium requirement by doing so? [3] What are the options for getting the life insurance out of the plan?

Can a plan termination be undone by a simple sponsor resolution? If it's a DB plan could it also be unfrozen in the same resolution?

We have a client where we review their ADP/ACP tests and prepare the Form 5500. The client determined that the ADP test failed and they refunded the approximately $1,500 back to one of the HCEs. The problem is that the client did not perform the tests properly -- the plan did not fail the ADP test after all. Thus there should have been no refund. So we have a situation where deferral money was distributed to a highly compensated participant who was not eligible to receive a distribution. I am clueless as to how to fix this.

An employer has an employee who (it seems) has discretion as to when to be paid on a W-2 and when to be paid on a 1099-MISC. As we know, 1099 income is not allowed for plan purposes. Thing is, he has been 'deferring' from his 1099 income throughout most of 2018 and continuing into 2019. (This may have happened in 2017, also.) I believe that the 1099 'deferrals' should be considered a Mistake of Fact and the funds should get sent back to the company. In the past, we have only been considering his income and true deferrals from his W-2. Using only that compensation, he is definitely a NHCE. However, if we consider his roughly $150k in 1099-MISC income, he is way over the threshold. So I'm not sure what to do -- (A): Send the 1099 deferrals back and leave it as it is. (B): Do (A) plus consider the 1099 income in my testing and make him an HCE (2017 test probably would fail). Or (C): Consider both the 1099 income AND deferrals in my test. Your thoughts are appreciated.

What say all of you about terminating plans and the current restatement cycle? Assume the documents have amendments to bring them otherwise up to date, just not restatements. I have a couple of different scenarios. Are document restatement required in any/all of the following circumstances. There has been some debate among our actuaries and senior folks.

1. Plans that are terminated and completely paid out as of today, but the plan termination date was AFTER the restatement cycle started.
2. Plans that are terminated and NOT completely paid out, the plan termination date was AFTER the restatement cycle started.
3. Plans that are terminated and completely paid out as of today, the plan termination date was BEFORE the restatement cycle started, but final payouts occurred AFTER the restatement cycle started.
4. Plans that terminated AFTER the restatement cycle started, but distributions will be complete BEFORE the restatement deadline.

When was the termination amendment? Before or after the restatement cycle started?

When are distributions complete? During the restatement cycle or after the restatement deadline?

Participant under age 59-1/2 and Roth 401k started in 2016. Wants to take a $13,000 distribution from her Roth 401k account at this time. Total contributions to the Roth = $21,896.36. Currently there is an overall loss on the Roth account of $998.15 -- i.e., her balance is $20,898.21. How does her 1099-R account for the loss on the Roth money? I don't see how anything is taxable to her on the $13,000 distribution since she has taken a loss on the account. Correct?

Plan loan policy calls for a "level amortization" and repays made through payroll deduction. Is the plan required to allow a participant to pay extra odd amounts (through payroll) if they choose? As an example, weekly repays are $88.52 and the participant wants to increase that by $20 and pay $108.52 weekly. Plan administrator is tracking the loans and not the investment vendor, which means the administrator would have to keep track of the "extra" repays and where they apply, presumably principal only.