"Hypothetical situation: Trustee terminates plan and takes all money, including monies due to employees. Takes this money and transfers into a personal IRA for this trustee. Believes he/she can get away with it since no reporting of benefits was ever done to participants. What is the TPA or actuary's obligation in this situation?"

"Under SECURE 2.0 section 317, a Sole-Prop can RETROACTIVELY elect to defer for a new startup 401k for PYs beginning after 12/29/22. Normally I would think that means “for 2023 PYs”, but could the following work:

1. Initial SHORT PY = 12/30/22 - 12/31/22
2. Limitation Year = calendar year ending within PY
3. Compensation Computation Period = calendar year ending within PY
4. Therefore elect to defer full 20.5K/27K for 2022 PY fully deductible for 2022 Tax return.
5. (+ PS alloc up to 415 limit, which is NOT prorated since Limitation Year is full 12 months, as well as Comp year; this part was already available for retroactively adopted plans I believe)

I’m a pension actuary obviously trying to think outside the box and there may be other boundaries that can’t be crossed that I am not thinking of. 401ks are not my forte."

"Participant turned 72 in 2022. The AB 1/1/2022 is $1,000 and 12/31/2022 is $2,000 Must start RMD 4/1/2023. Does not want to take it monthly, wants a lump sum withdrawal. As 9 months in 2023, is it correct to provide $18,000 on 4/1/2023 (9 * $2,000)? If taken later, would you adjust each monthly payment from 4/1/2023 to date of withdrawal by 5% (plan pre/post %). If wants to take in February 2023, would you adjust the distribution to 11*$2,000 i.e. $22,000 Any other corrections to my math/thoughts,?"

"We are looking at setting up [a nonqualified] plan that has a discretionary employer contribution and also allows the employee to defer a portion of their pay. I am confused a bit by the IRS W2 directions because they do not seem to indicate any reporting in Box 12 Y for employee deferrals. From the NQDC Reporting Example chart in the IRS Publication 'Example 1 -- Deferral, immediately vested (no risk of forfeiture). Regular wages: $200 Defer, vested: $20 Employer match, vested: $10 Box 1 = $180 ($200  -- $20) Boxes 3 and 5 = $210 ($200 + $10) Box 11 = $0' There is no mention of Box 12 Y, yet the directions for Box 12 Y clearly indicate 'Deferrals under a section 409A nonqualified deferred compensation plan'."