"I just did the calculations and the participant gets $3.25. They will make the deposit into the account for late deposits. At 15%, the penalty is 49 cents. Is there any requirement to File a Form 5330? This seems so ridiculous."

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"Employee elected maximum allowed into employer's Health FSA plan. Employee is terminating and has 2 questions:

1. Is employee required to submit FSA claims prior to last day of employment (ie mid month), or last day of coverage (ie last day of month), taking COBRA out of the picture
2. Can employee then elect any FSA amount with new employer, regardless of how much was either put into the account of first employer or reimbursed/used at first employer?"

"Company A sponsors Plan X, a multiemployer defined contribution plan. The plan allows in-service hardship withdrawals under a more liberal definition than the one used in IRS regulations applicable to 401(k) plans until recently. The plan's primary form of distribution is an annuity, with the ability to elect a lump sum, with spousal consent.

Service Provider M filed an application for a determination letter with the IRS and checked that the plan was a money purchase plan. The IRS issued the letter with a caveat that the letter was conditioned upon adopting a plan amendment characterizing the plan as a money purchase plan.

The plan has been consistently operated as a profit sharing plan. Company A proposes to file a VCP application with the IRS permitting the plan to be amended to be characterized as a profit sharing plan from its inception. In effect, the plan is correcting the error by plan amendment to conform to its operation. There are no additional qualification errors.

Is the IRS likely to approve the proposed correction?"

"Our company is small and deals with small plans. Are there other TPAs out there that have non-participant directed funds that need the new lifetime income disclosure coming up in September? We also have fiscal plan year ends, and I have several 9/30 plans. What type of solution have you found for this or are you already using a product that will produce this disclosure?"

"A DB plan was not administered for a few years. They came to us to bring them up to date (valuations , filings etc.). There were no AFTAPs since 2017. Do we take the AFTAP percentage that was prepared for 2017 and subtract 10% for each year until we reach the current year?"

"We divorced almost 10 years ago in California. My ex-spouse was rewarded part of my deferred comp. She hasn't filed a QDRO yet and has been putting it off every time I mention it. I haven't been able to do anything with my account since and it has cost me thousands I would have earned in the account. I'm not sure what my options are. What can I legally do?"

"Many small-business 401(k) plans allow an owner's young children as participants. To support contributions, the child must be capable of, and actually perform, real work that is useful to the business. Likewise, the business must pay no more than reasonable compensation for that work.

Sometimes the facts call into question how real the child's job or pay is. For example, some might wonder whether a six-year-old (who presumably attends school during about 80% of a year) does enough work to earn $24,000, or even $20,000, in a year's wages.

Which facts are bad enough that you would suggest a client needs advice about whether the IRS would see the child's wages as a sham? If the business does no advertising (or uses none in which a model's image would appear), is there an age that is too young for an owner's child to be a worker?"

"If a plan is terminating effective 8/31/2021, does the pre-approved document still need to be restated for Cycle 3? I know that it would need to be amended for CARES/SECURE, but is the restatement required?"