"I have a plan that is a MEP and the assets are all in one big account at the recordkeeper. From time to time there are forfeitures from participant accounts due to distributions. Those forfs go to the forfeiture account. But it is also just one account for the plan, not broken out by company. How can/must those forfeitures be used? That is, can the forfs from one company be used to cover the contribution or fees of another? From my limited research on the issue, people suggest the forfeitures from each of the companies be used only for the respective entities. However, the regs are silent on the issue. It seems the IRS did not contemplate this situation."

"Participant terms with a loan balance. He takes his money, taxes taken and loan offset at the record keeper. A month later he's rehired and wants to start repaying his loan. is that an option? The R/K said they could "convert" a loan using the prior balance (plus any interest, etc) and go from there. But is that w/in the rules? My question is, what if he terms again in 6 months and the loan gets defaulted/offset again? He'll be paying taxes on it again."

"I know one or more people have asked about DC plan litigation statistics within the last year. I came across Part II in another newsletter and found Part I so linking these for anyone interested."

"Fidelity provided a client with a discretionary matching contribution notice and this was surprising to me as I had never seen or heard of such a thing. After looking around, it appears the IRS never formally announced that this new notice is required. Instead, they may have forced document providers to incorporate this notice into the actual plan document. Has anyone else come across this? Is there a formal regulation that I'm missing or was this a way for the IRS to backdoor regulate plans? Thanks!"

"A defined contribution plan has an age 72+ Active Participant who is not a 5% owner, who would like to receive an in-service distribution which the plan permits. Required Minimum Distributions are generally required for non-5% owners in this plan upon the later of the year that he or she reaches 72 (70 ½ if you reach 70 ½ before January 1, 2020), or, the year in which he or she retires. Q: The question is whether or not a Required Minimum Distribution is necessary since the Active Participant is beyond Age 70.5/72 but has not retired and does not intend to retire this year?"

"Looking for guidance on the following scenario. If a participating employer in a MEP completes a stock sale of one of their entities which is covered by the MEP 401k and the new owner is not eligible to participate in the MEP (and participants are not eligible for distribution due to the same-desk rule) is it correct that the new owner would still be responsible for plan documentation and participant communications?"

"Timing is everything A CPA has asked me a question. His client has a Simple plan and I guess they want a 401(k) plan. I know that you can not fund both plans at the same time (and dare I go further, you can't even have both plans in existence at the same time?). They want to terminate the Simple and establish a 401(k).

• If they funded the simple during 2022 they can not adopt a 401(k) until 2023 (correct?)
• He is concerned about the Secure Act, a mandate on funding a 401(k) into next year. Did I miss something? I'm going to ask him what he means.

This in my mind shouldn't be difficult. Maybe he is reading into something too much?"

"The SECURE Act (Section 104) increased the tax-credit for a small business establishing a retirement plan to $5,000. Does a small business qualify (for the credit) if they already sponsor a retirement Plan (in this case a SEP-IRA)? They would you like to start a 401k in 2023 but only if they are eligible to receive the tax credit for a establishing a new retirement plan All help is appreciated Thank you in advance"