"Looking for input regarding the calculation of the amount an employee is required to repay under Rev. Proc. 2019-19, Section 6.06(4)(a). The Overpayment amount is $100,000. Under Section 6.06(4), the repayment amount would be $100,000 adjusted for Earnings at the plan's earnings rate. In the current investment environment, the Plan has suffered significant losses. Is the demanded repayment amount $100,000 minus the losses at the plan's earnings rate up to the date of repayment (e.g, $96,500)? Or is the repayment amount merely $100,000 not adjusted for a loss (because there are simply no earnings)?"

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"For old school plans that have all accounts in a pooled trust, no participants can make elections, and they get one annual statement. As we send these out, I'm curious if others are sending out statements as related to the current (and quite large) decrease in market value. As it is, we intend to communicate to clients that we recommend a 3-31-20 special allocation for new distributions, and we will need to communicate something to participants."

"I know this is way early for this discussion, but here goes anyway... Just had a dentist call to say that he is following the ADA recommendation and basically shutting down for the next three weeks. Since his employees don't want to use their vacation days and prefer to collect unemployment, he is going to give them what they want and fire them (NY is waiving the usual one-week waiting period for unemployment benefits). He intends to rehire them all in about a month, but was concerned about what effect it might have on the plan. Obviously, they can't defer while they're not paid, and they don't have plan compensation during this period so their end-of-year safe harbor and profit sharing will end up being lower. For those normally working just over 1,000 hours per year (and if that's a requirement for a profit sharing allocation), they might fall below the threshold and it could cause a problem with 410(b) testing. And... what if he doesn't hire them all back?

I know partial plan termination is partially facts and circumstances, so maybe this could be argued, but I'm thinking this might come into play if he lets go 7 and rehires 4 because business is slow to restart.

According to this dentist, this is going to be a common situation for many small dental practices, so I figured I'd toss it out here so we can start discussing it."

"Sole Prop. Over age 50. Gross Sched C: $19,114. Net after SECA, etc: $17,764. Deferrals: $17,764. Section 415 limit: 100%. Can he put in another $6,000 as catch-up? Can he put in PS and have some of the $17,764 classified as catch-up? (I know the PS would lower the plan comp.) I'm having a hard time reconciling these numbers with 415 and the comp on Sched C."