"I have a plan that has 3 participants and only the owner defers. During 2020 and part of 2021 there was a mess up at the payroll company and the salary deferrals were not deposited into the 401(k) account at all. The deferrals were withheld from each payroll, just not deposited. Because this only affects the owner, is it necessary for him to pay lost earnings to himself, and then is it further necessary to file a Form 5330 for him in order to pay penalties for himself?"

"Currently our plan has no age/service requirement for deferrals and the non-safe harbor match. The non-safe harbor match is a payroll period match with no other allocation conditions. The owner is trying to save some money and would like to amend the plan now to change the eligibility requirements for participation in the non-safe harbor match plan component and require an employee to be at least age 21 and have a year of service. I understand from the TPA that this would be allowable, just as long as we pass coverage testing and ACP testing. For the ACP component plan, the TPA is saying that we need to include in the testing group anyone who is eligible to defer, which would mean a lot of these employees who don't meet the new eligibility requirements for the match would be counted as receiving 0% match. I was thinking we would be able to exclude the employees who don't meet the new age 21 and year of service requirements. Can someone explain how these tests would work with the dual eligibility requirements?"

"A hypothetical (might be reality soon) situation. 2020 required contribution is $150k and Schedule C income is zero. Client has the money to make the deposit and will do so by 9/15.

• Will this amount be part of 2021 deduction?
• For 2021, say another $150k required contribution and another loss on the Schedule C. What happens? Carry over $300k as nondeductible for future years and then deduct in future years?
• 2021 has a good Schedule C income and the 404o limit is over $300k. Can he deduct for 2020 and 2021 contributions as the total will be less than 404o limit?
• Anything else I should be asking?'

"Is it typical for participants in one 401(k) plan with pre-tax and Roth to have the same investment elections or is it typical for a participant to choose an investment election for pre-tax and a separate election for Roth?"

"Client wants to set up a plan that has 500 hours for a Year of Accrual Service (so they are eligible to receive a contribution) but 1,000 hours for a Year of Vesting Service. Cash Balance Plan. Entry is going to be 21 with 3 months of service. Is that permitted?"

"Company sends out an email to all employees before the entry dates to notify them that it's time to enroll or change their elections. Eligibility is one year (1,000 hours) and then enter on 1/1 or 7/1 following. A key employee's wife, who is a part-time employee, was eligible for the plan as of 7/1/2020. She did not enroll in the plan. Administrator missed her in the 2020 safe harbor calculation because of her part-time status, and didn't realize she worked more than 1,000 hours in 2019. She worked 936 hours in 2020. Her date of hire was 1/7/2019. She worked 1,039 hours in 2019.

Is the email that was sent enough proof that she was notified? Or is a corrective contribution needed? They don't individually notify anyone and never have had an issue."

"EPCRS 2021-30 provides that, for a 401(k) plan that does not satisfy Section 401(k)(3) by applying the safe harbor contribution requirements of Section 401(k)(12) or 401(k)(13), '...missed deferrals are determined by multiplying the actual deferral percentage for the year of exclusion....'

The plan did not do a nondiscrimination test, and I am wondering: can I use a different calculation to correct this issue?"

"I'm a layperson who has an old single-participant defined contribution plan with the trust at Fidelity (from my self-employed days). I've never had a TPA before but would like to hire one to administer my plan, monitor compliance, file 5500-EZs, etc. I have no idea how to go about finding one. Can this group give me some pointers or referrals on how to find a single-participant TPA? I'm in the San Francisco bay area."