"Someone in my office got a call about maximum deductions for a 401(k) Plan. It's 2 participants, husband and wife, both doctors. They only receive 1099 income. I'm not sure they can have a 401(k) plan with only 1099 income to begin with. What type of plan could they have, if any? What limits would it be subject to? Could they have a DB plan with 1099 income?"

"I have a DB plan (not Cash Balance) that was terminated this year and has a funding deficiency. Because this would be the final SB filed for the plan, I am unclear how to show the correction of the deficiency on the SB since instructions say to report only contributions made with 8-1/2 post year-end. The minimum contribution was due 9-15-19 but wasn't funded until 11-15-19. The contribution made was adjusted for interest using the effective interest rate for 2019 and the deficiency corrected. We are wondering whether to un-terminate for 2019 so a clean and final SB could be filed for 2020. Client is concerned about the audit risk."

"In 2017 and in 2018, 16 employees were allowed to join the plan and defer before meeting the eligibility requirement (7 in 2017 and 9 in 2018). The client was told the document provider would draft an amendment to bring these 16 into the plan. An amendment will be done for each plan year listing the employees by name for the respective year. Vendor said this will correct the problem. Isn't this one time amendment a 'corrective amendment' and therefore needed to be adopted by 10/15/2018 (for the 2017 plan year) and 10/15/2019 (for the 2018 plan year)? Can the plan just adopt the amendment now to correct the eligibility errors for the past two plan years?"

"Suppose you have a 100% shareholder of a corporation with 20 employees. The business sold as an asset sale. In other words the buyer did not purchase the corporation but instead paid $ xxx,xxx for the business. The seller (an individual), who will maintain the corporation, wishes to establish a defined benefit plan that would only cover him. I seem to remember reading something about how this type of thing may require covering former employees. I could see how this might be an affiliated service group if the buyer were purchasing stock of the corporation over time, but would that be the case with an asset sale?"

"Can I amend a SH plan now to change PS method from pro-rata to new comparability for Jan. 1, 2020?"