"It is my understanding that the late adoption of the Cycle 3 restatement results in the plan losing its ability to rely on the preapproved document's IRS letter and the plan becomes individually designed beginning 8/1/2022. Further, this can be self-corrected under EPCRS so long as all of the requirements for self-correction are satisfied and the individually designed plan is compliant as an IDP. The employer may then rely on the preapproved document's IRS letter. My question relates to timing. It appears you must first correct any plan document failures then adopt a new Cycle 3 document.

Assume the client presents us with a Cycle 3 document effective 1/1/2022 and signed 8/31/2022. We review the prior document and find it is in compliance as an individually designed plan. Besides documenting in a Board resolution the employer's intention to self-correct what additional steps, if any, must be taken?"

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"Is there a codified rubric that says how IRS PNs must be assigned? I have a MEP, do I have to have a PN that starts with a 3? Where is the written guidance?"

"We have a consultant who came to us who wanted to start a 401(k). Technically he doesn't have a company, it's just him getting 1099 income for consulting. Can someone under that circumstance start a solo 401(k) plan and file it under their SSN? For some reason they don't want to do a SEP (haven't gotten a straight answer as to why)."

"Plan has 1 year of service requirement, and shifts eligibility computation period to calendar year after initial computation period. Employee hired on March 1, 2022 and then terminates on May 1, 2022. During that time period, worked 250 hours. Employee is rehired on June 1, 2022.

Does the eligibility computation period still shift to calendar year, even though rehire happens outside the initial 12 month period? I don't find this clearly addressed in the regs. It seems the better approach is to shift to calendar year, but is not clear."

"Employer (S-Corp) extended its 2021 Tax Return to 9/15/2022, but filed it in April.

In March, 2022 the employer deposited its Safe Harbor Matching (ADP) contribution for the 2021 Plan Year. This contribution was deducted on its 2021 tax returns.

On September 15, 2022 the Employer deposited its Safe Harbor Matching contribution for the 2021 Plan Year and, because it had already deposited the requisite ADP Safe Harbor Match, would like to deem it the ACP Safe Harbor Match (as permitted by the Plan).

Can this contribution be deducted on the business' 2022 tax returns, or must the 2021 returns be amended to capture the deduction? The amount is well below 404 deduction limits and it is anticipated it will be well below the 2022 section 404 deduction limit if added to the 2022 plan year contributions."