"ERISA 403b plan failed ACP test. Can the employer use QMAC to cure the failure? Plan document is silent to QMAC but does include QNEC solution. Called the plan document provider (ftwilliams.com) and they stated that document was silent to QMAC, but does not preclude them. Therefore QMAC could be added to the document. I could not find QMAC option in other 403b documents when doing an internet search."

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"If a recordkeeper did not start RMDs by the required date, does the RMD amount for 2022 get adjusted to take into account the missed RMDs? The situation is a new recordkeeper is processing the RMDs. The participants did not start RMDs for a few participants going back several years while with the prior recordkeeper."

"An employer sponsors a nonqualified deferred compensation plan, which it would like to terminate before year-end and begin paying out beginning after 12 months and ending within 24 months in accordance with the plan termination rules. Individual agreements with each of the 3 participants provide for a specified dollar amount to be paid to the participant every year for 10 years beginning when the participant attains age 62. The specified dollar amount will be reduced by 5% in connection with the termination, a reduction all participants are agreeable to, and will sign releases concerning. Is this an exception to the otherwise applicable prohibition against applying a 'haircut' to accelerate payment? Also, can the timing of payouts over the 12--24 month post-termination period vary among the 3 participants (e.g., participant 1 gets a lump sum distribution on 12/31/2022, participant 2 gets a lump sum distribution November 30, 2023 and participant 3 gets a partial distribution on 12/31/2022 and the balance paid on November 30, 2023)?"

"Client recently discovered they qualify for exemption from 5500 filing as a governmental plan. They currently sponsor an ERISA-exempt 403(b) plan (employee deferrals only) and 401(a) plan with only employer contributions for which they have been filing a 5500. Based on newly discovered governmental plan status they want to freeze the 401(a) plan and have participants rollover their accounts through in-service distributions to the 403(b) plan in 2022. If there are some participants that choose not to rollover their accounts and there are assets still in the plan for the 2022 plan year, what do we do for the 5500? 5500 instructions say a final return cannot be filed if assets remain in the plan but technically the plan is not subject to ERISA so no 5500 is required. Thoughts?"

"All of our 401K SH plans are the safe harbor non-elective, so this situation has not come up yet. Our client maintains a 401K with safe harbor match, 100% up to 4% of compensation. To date, all eligible have deferred, for next year there will be one participant who will not be deferring. Q. If a participant does not defer, obviously they need to get the 3% non-elective if he meets age/svc; if the client makes a discretionary PS contribution greater than 3% (minimum is 5% to pass gateway for the new comparability profit sharing portion), is the full 5% contribution considered to ALL be profit sharing subject to vesting schedule, or does 3% need to be at 100% and the remaining 2% subject to the vesting schedule?"

"Can you guys help me? 1. More than 5% (During current plan year or Previous Year) 2. More than 1% with $150,000 compensation (During current plan year or Previous Year), Do we need to consider only current plan year or both current & previous year? & Can we apply family attribution rule with 1% ownership? 3. Officer: compensation > $185,000 (2020) (During current plan year). Do we need to consider only current plan year or both current & previous year? Thanks in advance!"

"Have an S-corp client. Father owns 100% of company. Daughter only employee covered. Can they file an EZ? Does attribution count for this?"