"Has anyone recently filed Form 5310 for a frozen defined benefit plan after formal action has been taken to terminate the plan but prior to the termination date? We have previously done so, but didn't know if there had been any recent concerns or questions raised by the IRS with this approach."

"Hi, There was a balance of $300 in the forfeiture account and the sponsor was unable to terminate the plan because of the balance in the plan level l account. The sponsor decided to re-allocate the balance in the forfeiture to one participant as a match contribution. There was no employee for 2022, they funded a match in 2022 but there is no deferrals which has lead to a operational defect since they can not fund it match. Since the plan is completely terminated what options does the client have to get this corrected/fixed?"

"Good afternoon! We took over a Cash Balance Plan and for '21 it appears they were using these interest rates (they used the corridors under BBA): However, I see that this table hasn't been updated for Plan Years Beginning in 2022. Does anyone know when these will be updated, or what can be used instead?"

"Prior to SECURE 2.0 there was the 3-year credit of 50% of plan admin costs up to $5,000 for small employers. I understand now that credit rate is 100%. PLUS there is now a new credit of 100% or an employer contribution up to $1000 per employee (phased down after year 2.) So a small employer starting a new plan gets both credits? That seems to be what I am reading. Is it really that good?"

"Client maintains a DB Plan with mandatory employee contributions of 3% of salary. It appears that HR missed this on a small number of employees and has realized it now. This has been going on for 3 years on one employee and about a year on a few more. The total number of employees impacted is less than% of the total population. Does anyone have thoughts on an appropriate correction? This isn't a missed voluntary deferral situation where we have set guidance on the correction. Does the employer have to make the missed contributions? Can they work with the employee to 'catch up' the amounts that were missed?"

"Amendment was sent to the client by DocuSign. It has 2 pages, a resolution and an amendment. Both pages were signed but only resolution was dated. Amendment's date is left blank. As they were both sent by DocuSign to be executed, there is proof that all were executed on the same date. There is the summary too. In your opinion, would the amendment be considered as signed on the same date as the resolution? Or, it will need to be re-executed and dated tomorrow? If this was not DocuSign related, I would not accept it but because there is no evidence as to when signed. I am curious on the legality."

"Plan sponsor failed to timely remit deferrals following multiple payrolls. We are proceeding with a VFCP filing with the DOL. Question is whether there is also an 'operational failure' under EPCRS. Plan document only requires deferrals to be deposited into the plan 'as soon as administratively feasible.' I have not found any basis to consider this an operational failure since the plan document does not require the deferrals to be deposited by a certain date. We are trying to avoid an EPCRS VCP filing (we are outside the self-correction window for significant operational failures). Any thoughts (or real world experience) would be appreciated!"

"A customer engaged us to prepare a non-SH 401(k) plan document for them in mid-2022 with elective deferrals to begin in the 4th quarter of the year. We prepared the document and they signed it. We've received word from the advisor that they've never collected or contributed a cent into the plan, and whether or not they ever gave their employees copies of the SPD or had an enrollment meeting is unknown at this time. I was wondering what the board feels is appropriate with regarding to formally terminating the plan. I've heard the argument that if the plan is never funded it never really starts, but I don't know if I can get behind that. In my mind, the execution of the plan document creates an obligation on the part of the plan administrator to operate the plan according to its terms, and there's an operational failure resulting in a missed deferral opportunity as a result. I haven't been in the industry that long, so I'm not sure what the commonly accepted practice would be in this situation. Any thoughts?"

"I am in a very preliminary discussion with a new plan. Just discovered that they have an employment contract with one HCE employee that states that the HCE will receive X% compensation annually to be contributed to his 401k. The amount is going into his gross pay and then to the plan as employee deferrals. It is not going in as employer contributions. I'm not comfortable but haven't quite worked out how big of an issue, if any, this is. On the one hand, they are just giving the HCE funds that he can choose to put into or not put into the plan. But since they clearly labeled it as 'pension funds' (they have a 401(k) not a pension) it concerns me as a possibly discriminatory issue. I would welcome any input."

"Client got a letter from DOL about late deposits. The old version made it clear that no response was required. This has a little more of the 'respond or else we're coming for you' interpretation. Has anyone else gotten this letter? This is the first one we have received. If this is the new version of the old approach it would be tempting to use the same solution (not respond). Curious to know if this is just a new template to get a higher response rate or they are really coming after clients who do not respond."