"In regards to the tax credit for plan startup costs (which just recently increased to $5k) does anyone know how this tax credit works if an employer maxed out this credit on a startup plan, then terminated that plan and started up a new plan a year later? Upon establishing that second startup plan would the employer be eligible for that tax credit again on the new plan?"

"Can a company give a bonus to an employee to cover the exercise cost of a stock option or will that make it a discounted option subject to 409A provisions?"

"After years of being a client and after being told about the dangers of this situation several times, the HR manager of a plan with ~500 employees with decent turnover and short eligibility (they need it to stay competitive) admitted that she has a hard time getting back the deferral election forms from people who choose not to defer (the only other contribution is a non-SH match) and is asking how to best protect herself. While I love the simplicity of it, I presume holding back paychecks until the form is returned is out of the question ("But I can't pay you until I know what you want deferred!"). I'm thinking that having the employee sign something when given the deferral election form could help show an auditor that even if the forms weren't returned, that the participants were at least notified and given the opportunity. Any other ideas? Let's assume that automatic enrollment is not an option for them. Thanks."

"We have a situation where an owner deferred fully to his own plan in 2017 and 2018 but had also deferred fully in another employer's 401(k) plan where he was just a participant. CPA is having to amend his 2017 and 2018 returns. We have read that the distributions must be taxable in both the year of deferral and the year oaf distribution. Excess contributions plus earnings were calculated for both the 2017 and 2018 deferrals and distributed in Dec 2019. Question: Unsure what to code the 2019 1099-R? Not P but maybe a 8 which is confusing as this signifies that the excess contribution stems from 2019 deferrals......�. Any help would be great!"

"I understand that if a cash balance plan (or any defined benefit plan) permits the purchase of life insurance policies that this benefit has to be offered to all participants to satisfy the nondiscrimination requirements. Does this mean a policy has to be issued on behalf of each eligible participant or only that the participant has to be provided the option to have a life insurance policy purchased on their behalf? I thought, unlike a defined contribution plan, a participant cannot make an election to include a life insurance policy in a defined benefit plan."