"Sub-S corp XYZ is owned by Joe 100%. No salaries taken. LLC partnership is owner 100% by XYZ. LLC has Joe and Mary (husband/wife) as W-2 employees. LLC is setting up a DB plan LLC has income and will cover the deductible contribution and transfer the balance of the profits to XYZ. This is the way the structure was explained to me.

[1] Is the LLC DB covered by PBGC? Not a professional entity so technically not an exempt category of business. [2] Is the above structure kosher? I am assuming the deduction is fine with the LLC. Anything else I am not thinking of?"

"A 401(k) participant COVID'ed her loan but did not start repaying until September 2021 and terminated employment 12/31/2021. She has not received a 1099R yet for the deemed distribution -- accountant has asked us to prepare. We have the outstanding balance as of 12/31/21. How would you take into account the payments only made in the 4th quarter?"

"Have a multiple employer plan where one of the employers inadvertently contributed for an ineligible participant. This was discovered during an audit, so the money had been invested and there was investment income. So what happens to that income? I believe the fund can return just the contributions and keep that interest to use towards plan expenses (self-directed accounts, so we know exactly what interest was earned). Correct?"

"Entity A has a Nonqualified Deferred Compensation ('NQDC') Plan. For one particularly highly paid employee ('Employee A'), Entity A is worried about having Employee A's NQDC liability on their books.

Entity B has ties to Entity A, but is not in the same controlled group (you could call the entities affiliated).

Can Entity A transfer Employee A's NQDC liability to Entity B, while also transferring the portion of the Rabbi Trust that holds assets needed to cover Employee A's NQDC interest to Entity B? One concern I have is that Entity A's creditors may not like the fact that Entity A is giving up assets (the Rabbi Trust holdings) at the same time they are getting rid of an unsecured general creditor. From a secured creditor's viewpoint, this isn't exactly positive. I welcome any thoughts, comments, answers."

"A and B are a CG (100% owned by one individual). They want to establish a plan. All employees of both entities will be covered. A employs its staff through a staffing company, 'C.' C is 50% owned by the owner of A and B (other 50% is owned by an unrelated person), so it's not part of the A&B controlled group.

C has absolutely no other functions. It pays A's staff and gets reimbursed by A-- that's it. The employees are hired, fired, directed, controlled. report to, and in all respects managed by A.

It seems to me that, under Rev. Proc. 2002-21 and Rev. Proc. 2003-86, these C employees are common law employees of A only. In fact, if C sponsored a plan and wanted to cover them, it could not do so on its own. It would have to set up a multiple employer plan with A adopting to comply with the RPs. Do you agree so far?

Now there is another company, D, that is in a controlled group with C (due to 80% ownership overlap by 2 owners). D has employees and its own 401(k) plan. It seems to me that because the 'employees' paid thru C on behalf of A should be considered common law employees of A only, then A and B can proceed with their plan without regard to D. It also seems that D can maintain its 401(k) plan without regard to C because C has no common-law employees. Do you agree? Any other thoughts? For the record, none of these are service orgs."

"This type of plan does not need to pass 401(a)(26) when running a 12/31/21 valuation and the lookback is month prior to plan year beginning (i.e., month prior to 1/1/21 is 12/31/20) for 417(e) rates, since the factor in determining if the plan is underfunded is 'Plan does not have sufficient assets to pay all benefits.' In reality, the benefits would not be paid out until at least 1/1/2022. Therefore, can the 12/31/21 417(e) rates (month prior to 1/1/22) be used to determine if the plans benefits (PVAB) exceed the the assets?"