"Under soon-to-be-enacted Internal Revenue Code Section 414A, some new Section 401(k) or Section 403(b) plans must include an automatic-contribution arrangement. For small-business employers not excused as too new or too small, could this new tax-qualification condition slow down creations of new plans?"

"I would greatly appreciate anyone's insight on the below -- The main question is what all entities are required to be included on part iv of Form 1094-C when a stock sale causes an entity to cease to be a member of one Aggregated ALE Group and become a member of second Aggregated ALE Group mid-year. A simple example scenario -- SellCo is one of a number of a wholly-owned subsidiary of HoldCo and is an ALE Members of the 'HoldCo Aggregated ALE Group'. Mid-year HoldCo sells all of the stock of SellCo to BuyCo causing SellCo to become an ALE Member of the 'BuyCo Aggregated ALE Group' (which assume includes other wholly owned-subsidiaries of BuyCo). What I am specifically wondering is for the subsequent 1094-C which all entities are required to be listed in part iv of the 1094-C filed by SellCo. (Other Ale Members of Aggregate ALE Group):

1. All ALE Members of both the HoldCo Aggregated ALE Group and all ALE Members of the BuyCo Aggregated ALE Group, or
2. only ALE Members of the BuyCo Aggregated ALE Group.

I would greatly appreciate anyone's thoughts as I have come up empty handed on this (as well as any additional thoughts on whether this would impact the part III(d) Aggregated Group Indicator reporting."

"I'm struggling to figure out if a defined contribution plan can maintain a life insurance policies for terminated participants. The EOB basically reiterates what's in Revenue Rulings 54-51 and 57-213, which essentially says a plan may not maintain "ordinary life insurance" {read "whole life"} after a participant "retires". I'm not sure what "retires" means in this context. The IRS preapproved document we use includes the standard IRS language, which is as follows: BPD Section 10.08(d) says, “Life insurance policies under the Plan, which are held on behalf of a Participant, must be distributed to the Participant or converted to cash upon the later of the Participant’s Annuity Starting Date (as defined in Section 1.12) or termination of employment.” And then Section 1.12 says in part, “Annuity Starting Date. The date an Employee commences distribution from the Plan. If a Participant commences distribution with respect to a portion of his/her Account Balance, a separate Annuity Starting Date applies to any subsequent distribution. If distribution is made in the form of an annuity, the Annuity Starting Date is the first day of the first period for which annuity payments are made.” Any insights would be greatly appreciated!"

"I have a plan with a rehire. Previous employment was 2014-2016. At that time, the participant made deferrals and was 100% vested in profit sharing funds. In 2021, the plan changed profit sharing vesting from immediate to a 3 year cliff vesting. The participant has returned in 2022. The employer agrees that the employee is a plan participant upon rehire, but the employer is questioning the participant's vesting percentage. Is the participant 100% vested because that is where they were when they left OR are they 0% vested because they had more than 5 consecutive 1-year breaks in service allowing previous vesting to be ignored (Taking all years with 1,000 hours into account when calculating the 3 years of service for the cliff vesting, they would have credit for 2015 and 2016, but still be at 0% as of 12/31/22)?"

"Plan has typical 1 YOS and age 21 requirement for eligibility, with dual entry dates following. There is a small match, and an ADP & ACP test must be done every year. The owner wants to know if it would be OK to amend the eligibility requirements to allow for a new employee's immediate participation and then amend the eligibility back to what it was. I imagine it would be a much bigger issue if it was an HCE, but let's assume the new hire is an NHCE -- can you amend a plan by adding a special entry date to the existing 21 & 1 provision such as 'in addition, all employed on 1/19/23 (the employee's DOH) will become participants on that date'? It would also allow a couple dozen other employees to enter the plan doing it this way, but they're OK with that. Thanks in advance for all help."

"Do we need to produce a Summary of Material Modifications for a 401(k) plan when the trustees are changing?"