Employer terminated employee. Reached a settlement agreement to pay former EE a certain amount of money upon termination. ER is thinking they now don't have to pay the former EE any 2019 safe harbor non-elective or subsequent gateway minimum in the profit sharing because this agreement stipulated that if she took this settlement money the employer was not obligated to give her any additional funds of any type -- including plan contributions for the 2019 plan year in which she terminated. I don't think this is permissible but wanted to see if someone had any idea if this was even possible to do.

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Participant turned 70-1/2 during 2019. Participant rolled over his Traditional IRA to his Employer's 403(b)(9) in April 2019. The IRA custodian did not remove the participant's 2019 RMD amount prior to the rollover to the 403(b). The participant is requesting his IRA RMD from the 403(b) because "Edward Jones said he could do it that way." (Sigh.) He has no other IRAs to aggregate and pull out the 2019 IRA RMD. I realize that an IRA RMD cannot be taken from a 403(b) but I am curious, what is the next step here?

This employer is correcting failed nondiscrimination testing for a prior plan year using the one-to-one method under Revenue Procedure 2013-12, Appendix B, section 2. When allocating the QNEC to eligible NHCEs, should the employer use the plan's definition of compensation for the year of the failure or total compensation for the year of the failure? IRS guidance does not appear to address this specific question. The revenue procedure merely states it must be a uniform allocation as a percentage of compensation.

Our firm is setting up a Company SIMPLE IRA plan with 10 participants. We chose to complete a 5305 form and designate a Financial Institution. These two questions are on the Advising side:

1. Since these plans are Participant directed, should we follow the same guidelines as the 401(k)s where we can offer guidance and education but not specifically advise on the investment selection? With this program with American Funds, there are about 20 mutual funds to choose from.
2. What about random current clients that are a part of SIMPLE IRA plan (that we are not managing as a company) but they would like for us to review and advise on their account? I just want to make sure we're handling the fiduciary duties correctly.

New company established in February 2018 wants to establish SH 401k effective January 1, 2019. Asset purchase of previous employer, no previous employer plan. Wants eligibility to be 12 months/1000 hours, dual entry dates. There are numerous part-time staff. There are 2 or 3 who work at least 1000 hours/year, will refer to them as full-time. In order to make owner and other 1 or 2 full-time employees eligible as of 1/1/2019, need to create a nondiscriminatory waiver for eligibility that won't cause part-timers to also be eligible. Can a plan provide an open eligibility provision as of 1/1/2019 that is for employees who are credited with at least 1000 hours in the previous year irrespective of 12 months requirement? In other words even though they may have less than 12 mos of service, if they had at least 1000 hrs credited, they would be treated as eligible 1/1/2019. My concern is whether the 1000 requirement in less than 12 mos could be deemed discriminatory.