"I have been trying to work with Empower regarding the first half of the 2022 year when plan assets were still at Mass Mutual from the previous Hartford platform. The data they provide is only available as a .txt file, and changing the extension to a .dat file does not work. Relius gives an import error stating that “Fatal error in The Hartford link. Incorrect file format. Fixed position file with linefeed only must be used." They have stated that the extension change should work (it doesn't), and that because the data is from another company (which they bought), they "cannot convert files obtained from another company." Outside of manually entering all the transactions for the first half of 2022, has anyone found a way to import this data correctly?"

"We are setting up a plan effective 1/1/23. Only HCEs in the plan (doctors). About 25 participants, 15 of whom are partners. Issue is with an employee for 10 years who terminated in April, 2022, making a salary of under $135,000 for 2022. That employee was rehired mid-January 2023 and would need to be classified as NHCE for 2023 if eligible since not a partner. To get around including them can we have a single entry date (January 1) with a six-month wait? Since the rehire was not employed as of 1/1/23 then would they come in as of 1/1/24 or is there an issue with service spanning?"

"Have a client that was bought. Recently told "Oh hey we were bought as of X" where X is a date in the past. Part of the selling agreement which they just sent me had resolutions terminating the Plan as of date before acquisition. Not prepared by us. Buyer is taking the position that that is formal plan termination. Seller decides on his own that since they aren't in the buyers plan he's going to continue deferral and safe harbor match and deposits first 2 January payrolls to the Plan. What is the fix? Can this be self corrected? or does this require VCP? Do the deferrals after term date get paid out as like a 415 excess? they ran through payroll so will presumably be on 2023 W-2. What happens to the match that was deposited? Forfeit? Allocate as prior year contribution? Return to client as mistake of fact?"

"Setting up a new 401(k) Plan effective 1/1/2023. The Plan covers a workforce that is entirely HCE, with one exception. There is an employee who had 10 years of service but was terminated in April 2022. She was then rehired in mid-January of 2023. It also appears that she did not have a Break in Service in 2022 as she did have over 500 Hours. This person would NOT be HCE for 2023 since her pay doesn't reach the pay threshold given her termination. (She will be HCE in later years by pay level.) It is hoped that she can be excluded from the Plan in 2023 for testing purposes. Since we have to include past service for eligibility, the only way we see where exclusion might be possible is using the fact that she was not in the employ of the firm on an Entry Date. This could be achieved if we use a single Entry Date of January 1 following 6 months of service. I don't believe this will work since she did not have a Break in Service as she had over 500 Hours in 2022, so she must be allowed entry on her date or reemployment. Is this wrong, or does anyone see a method where she could be excluded? Would using a 2 year wait for profit sharing entry limit her to only the Gateway, for example?"

"Does an auto-escalate notice have to be provided 30 days in advance? Thanks in advance."

"Plan has discretionary match and currently the document election is to compute match with each payroll period. Sponsor is asking to amend the plan to be a Plan Year election to allow for true up. Now in February 2023, is this something that can be retroactively amended for 2022 plan year?"

"Seems like different practitioners in our industry see these differently. When changes were made to EGTRRA making these available, the counsel we used at our firm indicated that you could have MORE THAN 1 Owner on these. Some others see it differently. How does everyone see that? The Term "Solo" is just really a marketing term or gimmick, from my perspective. For example, if Jack and Dave own 50% each of ABC, there are no other companies that are owned by them, no common-law employees who reach 1,000 hours, then they could have ONE Solo(k) and both participate in it, correct? To go a step further, if they're spouses work for the company and get a W-2, they could also contribute, correct? Also, if you have 4 separate owners at 25% each (and not CG or ASG issues), they could all set up ONE Solo(k) and each participate, correct?"

"1099R was issued with a Code 1 for a 2022 distribution but the Participant is claiming they would qualify for the disability exception to the 10% penalty tax. My understanding is that even though the Code 1 was used, which specifically is titled 'Early distribution, no known exception.', you could claim eligibility for the waiver of the penalty tax. i.e., we don't have to issue an amended 1099-R. Is this correct? Can anyone point me to anything explaining how this is done? I assume it is straightforward. This must happen on a fairly regular basis."