"With the understanding that the entity sponsoring the plan is usually the employer, this question arose in connection with a transaction where we just found out the seller, and plan sponsor, is a trust. Forgive me if there is an obvious answer, but wondering if, as a technical matter, a trust can be the plan sponsor of a 401(k) plan?"

[Sponsored]

The rules of Sale Harbor Plans are not always straightforward. And SECURE 2.0 raises new issues & concerns. ASC can help! Learn the applicable rules and the many compliance “gotchas” plan sponsors and practitioners need to know. Register Now.

"Brand new 401(k) plan, effective 1/1 of the last year, adopted the year before so 401(k) able to start on 1/1. It's not a safe harbor plan. Took them awhile to get going with the admin of the 401(k) so they started 2/1 and only matched based on comp from 2/1. Match was done on a payroll basis. The definition of comp is full year, so I believe the participants who contributed greater than the minimum required for the 3% match have been undermatched. Advisor disagrees."

"Existing calendar 401(k) plan with Corp A. Becomes CG in November with Corp B Corp A has a 401(k) plan with eligibility of age 21/1 year of service with 1000 hour requirement Corp B has a 401(k) plan with eligibility of age 21/3 months of service. When will the 2 plans need to be tested together? How about if each plan passes the 410(b) and also 401(a)(4) on their own, can they be tested separately? Top heavy issues aside. What else am I not thinking of or not asking? May be something related to 410(b)(6)?"

"We filed an EZ form as final as of Nov 2022 on a 2021 form. We received a Filing Received acknowledgement but with a warning message because of the short year and on a 2021 form I suppose. Is there a way I can confirm the 5500 was filed with the DOL? It isn't searchable on the regular search site of course. But I wonder if there is a help line or other practitioner site."

"I have a plan that has multiple Participating Employers in it. One of those PE's terminated with the original Employer 401(k) plan. They are wanting to start their own 401(k) plan. Would this cause any issues?"