"Advisor I work with let me know that he has a client that had some employees enroll in 2021, but he never withheld anything, and did not deposit anything for these employees. Can they correct under VCP? how should they handle the fact nothing was ever withheld? I'm having some difficulty trying to figure out the best course of action.' "

"Client has a 401k plan with age 21 and 12 mos service requirement for the purpose of employee deferrals, matching, and profit share. The client hired two employees earlier this year, both of whom are HCE's (owners' spouses). Client is wondering if it's possible to retroactively amend the eligibility to 6 mos to allow spouses to defer in 2022? Or, is it possible to create a new class of employee with separate eligibility criteria for these two allowing them in the plan immediately and leave the age 21/12mos criteria in place for all others. Plan otherwise passes ADP testing (no employer contributions are being made to the plan) and coverage testing."

"Hey Relius users -- anyone recall where the specification is to tell the system it's a short plan year? I used to be able to log in to the old relius.net, which had all of those types of questions/answers but I can no longer access that. The new FIS log in doesn't appear to have a similar Q & A section and I didn't want to have to wait to post an 'incident' for such an easy question!"

"If the rule of parity states:If an Employee does not have any non-forfeitable right to Employer contributions, exclude eligibility service before a period of five [5] consecutive One-Year Breaks in Service/Periods of Severance -- No ... and the one year holdout state: If an Employee has a One-Year Break in Service/Period of Severance, exclude eligibility service before such period until the Employee has completed a Year of Eligibility Service after returning to employment with the Employer -- No ... How far back are we required to look to determine if an employee who joins has any service that should be included because both of these rules do not exclude it? Is there a certain criteria given by the IRS or if it is not determined in the plan document is it like since the company began?"

"Participant passes away late in 2022 and has already taken his 2022 RMD. Spousal beneficiary (also a plan participant) has not yet taken rollover of husband's plan balance. She plans to rollover his balance in 2023 to her personal IRA. Is a 2023 RMD required from the deceased participant's plan account prior to the 2023 rollover to spousal beneficiary's personal IRA? (Both participants are owners, well over age 72 and have already been taking RMDs from their plan account balances.)"

"I have a potential client that is possibly looking to establish a 401(k) Plan before the end of this year. It is too late to make this a Safe Harbor Plan as we are past October 1st. Some time ago I recall reading about a method to maximize deferrals in the initial year using what I think was called the 'popcorn' method. Has anyone ever heard of this? You would use this method in the initial year of the plan and then amend the plan the beginning of the following year making it a Safe Harbor."

"We sent in extensions for both 2/28 and 3/31 and so far at least one in each batch was rejected even though we are 100% certain we mailed them in at least a few days before the due date. Anyone having the same issue?"