"A 401k participant became eligible to enter the plan on 1/1, but didn't begin deferring until the next entry date, 7/1. Is the plan sponsor required to true up the SHM for said participant based on his comp from 1/1-12/31? Thanks."

"Client has not paid withholding due on participant distribution for 2022. Client received the 20% check from the financial instition, didn't ask anyone what check was for, and deposited into the business checking account. As I was completing Form 945, asked client for dates paid and she tells me it hasn't been. I have called the payment in with EFTPS before, I assume payments made online handled similarly, but 945 withholding. Question is, do we need a separate PIN to make a 945 payment? Accountant tells me the client pays all 941 through EFTPS; accountant has no idea how payments are made with 945, which I find incredible."

"An employer now may give a de minimis financial incentive to employees who elect § 401(k) contributions. If that incentive is a “low-dollar gift card” some in Congress mentioned, an employer likely must tax-report on Form W-2 as taxable wages the gift card’s cash-equivalent amount. What do BenefitsLink neighbors think about whether America’s payroll people are ready to take on that work?"

"A couple of questions: 1. When restructuring do I have to an HCE in each component group? As long as each group passes coverage, I don't think so, but hoping to verify. I do understand that doing that may mean plan has to pass ratio percentage test at 70%. 2. If each rate group in the component plans pass ratio at over 70%, do I have to pass the ABPT on the whole? Normally I wouldn't look to the ABPT if every rate group is over 70%, but in this case the only reason that is happening is because I restructure. Thanks for any guidance."

"Just curious as to what most people do. In general, for plan allocation purposes, do most documents you see INCLUDE all or most categories of 'post-severance comp' or EXCLUDE all or most categories of 'post-severance comp' FWIW most of the plans I see INCLUDE it. I'm reviewing a potential takeover where it is all excluded, which brought this question to mind."

"Since terminating plans are forced to amend for compliance even though 'regular' plans have a greatly extended remedial amendment compliance period, seems like this may be a challenge. Coming up with a comprehensive plan termination amendment is quite a tough assignment. Any thoughts about how reasonable the IRS may be about a 'good faith' plan termination SECURE 2.0 Amendment? I'd like to think that any 'reasonable' attempt at such an amendment would be a case of, 'Pass, Friend' without any minute scrutiny for perfection."

"Client pays for LTD benefits to its employees by paying insurance premiums every month. They are allowed to elect to treat the employer premiums as taxable so that if they were ever disabled their benefit would be tax free (at least I believe that is the arrangement). In any event, the Plan uses W-2 wages and this election increases Box 1 federal wages on W-2. So this election increases their 415 wages, correct? Yes it would be a taxable fringe benefit, but curious if others agree it is part of 415 comp."