"401k/PS plan- owner gives his 2 kids (they do not work there ever - they have other full-time jobs) the max 401k and accompanying SHMatch every year. They are on the payroll so get W2s. They do not contribute any 401k monies where they actually work, but can they get a profit sharing contribution from both this plan and their actual plan? No need to comment on the legality of this - been down that road with them."

"The SECURE 2.0 Act of 2022's provisions for a 'pension-linked emergency savings account' include not only Internal Revenue Code provisions but also a new part 8 of subtitle B of title I of [ERISA]. Am I right in thinking an emergency savings account is a part of an ERISA-governed retirement plan (if it's not a governmental plan or church plan), and so is governed by ERISA Section 206(d)(3), with its QDRO exception from a retirement plan's anti-alienation provision? How does a need to pay an alternate payee as a qualified domestic relations order requires affect one's administration of a retirement plan and its emergency savings account? Is it the same as, or different from, administering QDROs regarding a plan's other subaccounts? If a participant has immediate access to an emergency savings account, would a spouse or other alternate payee get no less access?"

"An accountant posed this scenario to me: His client established a traditional IRA and made a $7,000 contribution in 2022 and then converted it to a Roth IRA. In doing year-end projections, the accountant determines that the client does not have any earned income for 2022 and therefore the IRA contribution is an excess contribution. The current account value is $6,700. Ordinarily, excess contributions must be withdrawn from the IRA to which made but in this case the original IRA no longer exists. Seems the only logical thing to do is withdraw the $6,700 from the Roth IRA. The client is going to get a 1099 for the conversion to Roth. Since he can't claim the $7,000 as a deductible contribution (which, if it wasn't an excess contribution, would result in a wash for tax purposes) is he now facing taxable income of $7,000? The 1099 issued for the refund of the excess contribution from the Roth is a non-taxable transaction. Any thoughts on how this individual avoids picking up $7,000 of taxable income? Thanks for any input."

"Transamerica sent out a piece indicating tha the IRS now requires W4R every time someone wants to increase their withholding. Can that be right?? Those forms are notoriously nonsensical."

"Facts: Suppose you have a husband and wife with no kids living in a community property state. Also, suppose he owns 82% of his corporation with no employees and is eligible for his companies' retirement plan. She also owns 82% of her corporation has 3 employees except she is not eligible for her corporation's plan. Question: A controlled group seems to exist here but would both plans need to be aggregated for testing when she is not eligible for either plan? Thanks."

"Company is sold to another larger company which brings all employees onto their set of benefit plans. Employees are covered by selling company for 2 months after the purchase date so as to finish the year off at 12/31 with the same benefits. At 1/1 they are under the new company's benefits. 1 employee stays on the old plan for two more months (ie the plan exists until 2/28). No need to file an additional 5500 since beginning of final year < 100. So seems logical to file the 12/31 5500 with Code 4R and then mark as Final?"