"A professional practice is composed of an LLC that employs the staff and separate S-corporations, one each for the professionals who also collectively own the staff LLC. The staff LLC has a safe harbor 401k. In addition to a 3%-of-pay safe harbor contribution, the LLC pops in another 2%, establishing a 5% gateway minimum for cross-testing. Each of the professionals' S-corporations has an identically drawn up 401k plan that permissively aggreates with the staff LLC's 401k, to allow the S-corporation to make a cross-testing determined contribution to its plan for its only employee, the professional that owns the S-corporation.

One of the new professionals did not coordinate into this situation, but was convinced by an investment adviser to have her S-corporation instead set up a SEP-IRA to which she then make contribution for 2020 and 2021.

We're hoping to get the 2021 contribution, and investment earnings, paid out to the S corporation (and hopefully the financial institution won't report either the 2021 contribution nor its return to her. If so, her S corporation will simply include that amount in its taxable income for 2021).

2020 might not be so easy. Because of the affiliated service group rules, the staff LLC employees would be included as benefiting employees in that professional's S-corporation's SEP-IRA. If the contribution for the professional was, say, 8%, of her 2020 W-2 wages from her S Corporation. There might be a contribution due from the staff LLC to that SEP-IRA of 8% of their pay. I am hoping that we can simply undo the 2020 contribution, have the financial institution regurgitate the 2020 contribution, the S-corporation and professional amend the 2020 Forms 1120-S, W-2 and 1040 to reflect the additional income. Is that possible?

If it is not, rather than 8% for all the staff LLC employees having to be contributed, can the dollars that make up that 8% be re-allocated among that professional and all staff in proportion to their considered compensations?"

"I'm confused about 402(g) excess deferrals. If there is an excess deferral contribution amount then excess contributions must be refunded by April 15 (no income tax due). Do I need to forfeit any matching contributions on that refunded amounts?

I've attached an ASC-generated report where it shows a $14 refund-attributable match needing to be forfeited. Do you agree with that?"

"I am relatively new. But which is the better option for a TPA when they are overloading with work: [1] Choose other TPA for their workload support, or [2] set up a backroom team in other part of the world (such as India or the Philippines)?"

"With some holidays regularly on a Monday and others observed on a Friday or Monday, 2022’s calendar results in ten or eleven three-day weekends for many workers. For most, our due date for 2021 personal income tax returns is April 18. For residents of Maine or Massachusetts, it’s April 19. For retirement, health, and other employee-benefit plans, the due date for a plan’s Form 5500 report on 2021 is August 1. The typical extended due date is October 17. For details, read my 2022 chart [attached] about how Federal and State governments and the New York Stock Exchange observe holidays. 2022 holidays recognized in public law in the United States of America.pdf"

"I know that a QDRO can provide that the payment of benefits from an ERISA qualified defined benefit plan can provide for termination of benefits not only at the death of the Participant or at the death of the Alternate Payee, but also on the Alternate Payee's remarriage. (See page 105, paragraph 2 at the top of the page at https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/qdros.pdf -- where, in discussing QDRO language, it says that, "Payment to the Alternate Payee shall cease on the earlier of: [insert date or future event, such as the Alternate Payee’s remarriage], or the date that payments from the Plan with respect to the Participant cease."

I always assumed this was authorized by IRC §414(p)(2)(C) requiring that a DRO state 'the number of payments or period to which such order applies.'

[1] Upon the termination of benefits to the Alternate Payee, is it automatic that the benefits no longer being paid to the Alternate Payee will revert to and be paid to the Participant? Is that a Plan by Plan issue?

[2] Based on the provisions of IRC §414(p)(1)(B)(i) that provides: 'The term "domestic relations order" means any judgment, decree, or order (including approval of a property settlement agreement) which (i) relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a participant,' does the termination of benefits on the remarriage of the Alternate Payee apply only when the QDRO has been entered for the purpose of facilitating payment of alimony to the Alternate Payee? Or does it also apply where the QDRO is intended to allocate marital property?"

"A client is a Private Equity Fund. Uses participant-directed accounts. One of the plan participants wants to know whether it's OK to invest in the firm's own hedge fund. Would that be legal?"