"Wishing you all happy holidays and great, prosperous New Year. The best think tank ever."

"All below are on a calendar basis ... Company X left PEO on 10/1/2022. They want to set up a new combo plan for 2022 which will be 401k/PS plus CB. How are the PEO contributions and salaries applied? How is testing done, just from 10/1/2022 (salaries and contributions)? Are they supposed to be short plan years? Anything else I need to be aware of? Thank you in advance."

"Looking at a CB document ... For accrual/pay credit, no service requirement i.e. 0 hours. Crediting period is 'Each Plan Year'. For the formula within a group, they wrote '$2,000 however for any terminated participant during the year, they will receive 1/12th of the pay credit for each month they worked 1 hour'. How is this possible? Aren't the member of this group entitled to full pay credit since no service requirement? What am I not seeing/confusing here?"

"Awesome article from Groom Law. But in a sea of bad news, this almost makes it worthwhile.... I haven;t seen yet if they fixed the issue where a top-heavy safe harbor match plan can avail themselves of immediate eligibility and a 1 year wait to avoid blowing their top-heavy exemption. That would for sure be a disappointing exclusion but regardless this is pretty awesome for a lot of plans."

"in 2020 I started then terminated a solo 401k, then somehow now I ended up with another plan in 2022 and I'm completely overwhelmed I try to read the instructions but my head just starts spinning and I'm panicked over the possibility of making any mistakes. at least I filed 5500ez 7 months after the first plan was empties. I just want to give everything to a pro to check everything over (from both 2020 and 2022), correct any mistakes, and reassure me both plans are terminated properly, I want nothing to do with them anymore before I start crying. Where can I hire a pro to take this on? I don't think my usual tax accountant can really do this."

"Accountant mistakenly gave 5% owner of LLP us date of birth which turns out to be incorrect, 11/11/49, but accountant gave 11/11/50. No previous distributions based on his being age 72 in 2022, this would have been the 1st RMD. With the corrected date of birth, don't we need to go back to the old 70-1/2 and recalculate 2019, 20 and 21?"

"Plan's AE assumptions are not great and need to be redone. Currently, post AE is 5.5% with 2022 Applicable mortality table (yes, hard coded in the document as 2022). I would like to amend it to a more favorable assumption that would reduce the AB for owner. I checked the math and based on current assumption, AB is $1,888/month. If I change to more favorable assumption, AB drops to $1,503/month which is huge difference especially for testing purposes. In either case, the 415 limit stays the same. If I change it now and the pay credit does not change, is this 411d6 violation because the AB drops but not the pay credit?"

"I am working on a cross tested 401(k) Plan. This Plan has a few allocation groups that are defined as ineligible for Plan Purposes in the Plan Document. In 2022 one of the participants moved from a non-Partner group that was eligible to participate in Profit Sharing to a Partner Group that is ineligible for participating. This individual is less than a 5% Partner so he is considered non-key. In addition, he is not an HCE. He made employee deferrals prior to becoming a Partner. Since he is considered ineligible as of 12/31/2022 would this require the return of his deferrals made when he was eligible to Participate? He is still employed as of 12/31/2022 so does this require a 3% top heavy minimum and the gateway minimum of 5%? If yes, would this be on his W-2 wages only or would we also need to include his K-1 wages."

"I have read that the President intends to sign the Consolidated Appropriations Act, 2023 (which includes SECURE 2.0) into law. Has anyone read when he intends to do so?"

"Dentist sells only 55% of practice to another firm. So....stock sale means that the dentist would need to terminate his plan prior to the sale date if he wanted to allow everyone to either take distribution or rollover to an IRA account, correct?"