"A 401k plan covering owner/spouse and their children. All HCE/key. All receive one paycheck end of year. They received the 2020 salaries end of December 2020 with the deferrals reflected on them. Just found out they're depositing the deferrals now. Do they need the VFCP adjustment? I think they do as I see no exception but not a 401k expert."

"Not a 401k expert. I know of only 7 biz days as a safe harbor deposit dates for any deferrals. Looking at a plan where I am told that they only can make one deposit per month -- their explanation for "administratively feasible" deposit. The owner travels a lot. The payroll is every 2 weeks. Is this reasonable? I don't think so. It's a small plan with 3 participants. 2 HCEs (owner and spouse) and one non-HCE."

"We have a 401k plan that was merged into another plan towards the end of the plan year (calendar year). The merger date was 12/15. The last 401k contributions were deposited into the new plan as was the full employer contribution for the plan year. Preparing the final 5500 for the old plan, would you report either that final 401k contribution as part of the overall contributions in the old plan? Same with the employer PS?"

"We had an issue with some ADP refunds. Correct amount came out of participant accounts on 3/9 and initial check was issued on 3/11. But there was an issue with the check request and the initial check was issued for less than the total amount. Error was realized and 2nd check requests were made that will have a check date of 3/17. Is the amount issued in the 2nd check considered late?"

"If a client wishes to start a new plan that has deferrals and safe harbor match only (does not have an Employer Match or Profit Sharing provision), must the plan have a short plan year for the first year to accommodate the notice requirement? Or can the plan year begin on 01/01/21 with a special effective date of 04/01/2021 for deferrals and safe harbor, even when the there's no match or profit sharing? I'm trying to avoid having a short plan year for the limitation year and include comp for the entire 12 months of the year."

"Development company with around 50 employees in California. All of the employees would be considered NHCEs as none of them have any company equity and do not make more than $120k (Besides the CEO). All other employees would be NHCE because of this. Would like to set up a new comparability profit sharing program where the employees who did well on their projects (all NHCEs) can be set to one 'group' on the new comparability profit sharing plan and have the highest % rate. These employees that are selected won't necessarily be the oldest (taking out age-weighted) and they won't have the highest salary either (taking out salary ratio). The HCE (CEO) would be set to the lowest % rate (1%) and thus the remaining other employees would meet the gateway test if they were set as 0.35% (1/3 of HCE). Would this setup satisfy the cross-testing requirements along with any other requirements? Basically I'm looking for a method to utilize profit-sharing but provide as much % as possible to the employees who excel at their projects and providing as close to zero as possible for other employees (which would include the CEO)."

"Employee participated in 2 different company plans and ultimately exceeded 402(g) limit for the prior year. Excess deferral was distributed prior to 4/15 of the next year. Are there one or two 1099-R's reported? If there is one, I believe it is in year of distribution with Code P (referring to prior year). If there are two, in addition to the one above, one for the prior year with Code 8? Alternatively, is the W-2 corrected? Or as I believe, there is just one 1099-R issued for current year and in this case, employee provides tax preparer with letter describing the excess deferral distribution."

"Plainly read, it would appear the SECURE Act amended 401(b) to allow a sponsor to adopt a profit sharing plan after the end of the sponsor's tax year. But what if a sponsor adopted a 401(k) plan in 2021 to be effective in 2021, but decided to amend the plan to be effective in 2020 (prior to the tax return deadline) so that they could make a profit sharing allocation for 2020. Kosher or not Kosher?"

"Participant works over one year and 1000 hours in that year, but terminates prior to reaching age 21 so never becomes eligible to enter the plan. That former employee is then rehired after age 21. would that employee enter plan immediately?"

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