"I am self-employed and I have a solo 401k opened in 2019. I opened a defined benefit cash balance plan and a regular 401k this week with a third party administrator. The intention is to roll over the solo 401k fund into the regular 401k and contribute to the DB plan as well for year 2020. I just realized that there will be excessive profit sharing for year 2020, because the profit sharing is reduced to 6% due to the cash balance plan. I wonder what options I have to correct the mistake. The solo 401k is at Vanguard and I am told by Vanguard that excessive profit sharing is usually treated as contribution for future years. I also need to file Form 5330 and a pay 10% penalty. Does it mean I cannot close this solo 401k and rollover the fund into the new regular 401k this year, until the excessive profit sharing is resolved? My understanding is the excessive amount may take two more years, given my expected income. At this point, both the DB plan and the solo 401k were already filed with IRS by the third party administrator, but no accounts have been opened anywhere and no money has been contributed."

"We have an individual who wants to rollover their SIMPLE IRA from a previous employer into our 401(k) plan. A SIMPLE IRA seems to be treated like any other IRA for distribution purposes, as long as the SIMPLE IRA has satisfied the 2-year requirement, so I am thinking that a rollover is allowed."

"Suppose an employer has a plan with 100 otherwise eligible employees, including 10 H-2A employees. Can the employer exclude the H-2A employees as a class (will easily pass coverage testing). I'm seeing conflicting information on this -- some indicating that under IRCA you cannot exclude them as a class, other information indicating you can."

"I have a plan that terminated and 2020 is the last plan year. It's a short plan year. Do you have to file a Form 8955-SSA to report the short plan year as the final year even if there is no one to report on the form? It appears that there is a penalty if you don't report the plan termination. I see no actual field to report that information on the Form SSA.

Here is the penalty section of the Form SSA instructions: 'In the case of a failure to file a notification of a change in the status of the plan (such as a change in the plan name or a termination of the plan), or a change in the name or address of the plan administrator, section 6652(d)(2) imposes a penalty of $10 for each day during which such failure occurs. The penalty, up to a maximum of $10,000, is imposed on the person failing to so file unless it is shown the failure is due to reasonable cause.'"

"If the plan adopts the 2020 non-elective SH between 12/1 and 12/31/2020 iat 4%, what needs to be done/when to switch to 3% for 2021?"

"Is the Auto Enrollment Tax Credit ($500 per year for 3 years under SECURE Act) available to ALL EACAs, or just EACAs that cover ALL employees (i.e., an EACA that includes a sweep of existing eligible employees). A lot of EACAs only apply to those who become newly eligible."

"A PS plan was in existence as of 1/1/2020. Adding a 401k provision now. Can the plan add a non-elective SH provision for 2020? I don't think so, because the 401k feature was not in existence for 3 months, but I'd very much appreciate confirmation."

"Can the spouse of a 1/3 owner of a company serve as the broker for a 401k plan?"

"What are y'all naming your trusts? I was thinking if the name of the plan is ABC 401(k) Plan the trust would be named ABC 401(k) Plan Trust (as in the trust established for the aforementioned plan). Relius just sent us a notification that the trust name can be the same as the Plan name but that just feels awkward. Things that are different should have different names!"

"Just received email from CCA on 2021 EA meeting. Something seems to be afoot between AAA and CCA. 'Due to current uncertainty related to the availability of the Marriott Wardman Park as well as uncertainty about the requirements that Washington DC will impose on large gatherings, the format and specific dates of CCA's Enrolled Actuaries Conference have not yet been determined. The CCA and the American Academy of Actuaries (Academy) have had fundamental differences that we have been unable to resolve regarding the manner in which the Enrolled Actuaries Meeting should be run in the future. As a result, there will no longer be a jointly sponsored Enrolled Actuaries Meeting, and we thank the Academy for their partnership with the CCA in the past.' "

"When computing the cushion amount for 404(o), you are allowed to include the amount by which the funding target would increase if future compensation increases were taken into account. Does this include the expected increase in the participant's 415 limit due to the increase in the high 3-year average compensation? For example, say a participant's high 3-year average comp is $60,000/year($5,000/month) and their accrued benefit under the plan's formula before applying the 415 limit is $8,000/month. However the actuary reasonably expects the participant to earn $120,000/year for the next 3 years. Can increase in the funding target due to the extra $3,000 be included in the cushion? Is the answer different depending on whether the plan is covered by PBGC? I know PBGC plans are permitted to assume increases in the 415 dollar limit for this purpose. I am not sure if that also applies to increases in 415 due to the 100% of pay limit."

"Plan calls for mandatory distributions under $5,000. It says it will be done without participant consent. Do they have to send out distribution forms to those they want to force out first? If so, what is the cite?"

"I have told these people that they have a controlled group. They keep balking at me. Just confirm for me so I know I am not going crazy.

Bob and Betty are husband and wife.

Bob & Sons Excavating: Bob is sole owner.

Bob's Pipe & Supply: Bob is sole owner.

Bob & Sons Gravel: Bob is sole owner.

Betty's Enterprise:

1. Betty (Bob's wife) is sole owner (a sole proprietorship).
2. Bob receives compensation in the form of pay that's reported on W-2.
3. Betty's Enterprise performs management services for all of Bob's businesses.

Because Betty's Enterprise earns money off of Bob's businesses, we must include all 4 businesses as a controlled group -- correct? Attribution?

Bob wants to set up a SIMPLE IRA because he thinks it would be cheaper than a 401(k) (because his businesses have employees). Bob and betty want to set up a 401(k) for Betty's Enterprise because it is just the 2 of them (no rank and file employees). Thoughts?"