"[A]llowing after-tax contributions for intent of mega backdoor Roth conversions only tends to work for very large companies. Is there a minimum number of employees where this strategy generally starts to make more sense? 1,000 employees? We have a company that is around 800 employees that is considering adding an after-tax contribution source. They currently pass ACP testing easily using the top paid group election. The most recent ACP test had around 90 HCEs and 80 other employees who reached the 2022 income limit of $305k but are NHCEs because of the top paid group. If after-tax were to be added ... it would depend on how many employees in each category actually used the source.... Are there any other considerations with respect to the demographics that should be considered?"

"Background: Participating Employer-A of a 403(b)(9) non-electing [multiple-employer] church plan sent both EmployEE and employER contributions to the Plan for an individual who is not enrolled in our Plan under that employer. The funds came to the plan with remittance instructions while the employer and employee were working to get the employee enrolled under Employer-A. The employee has since decided not to enroll in the Plan under that employer. He is, however, enrolled in the same Plan under a different employer, Employer-B. Meaning, he works for two different participating employers. Question: If he is not enrolled in the Plan under Employer-A, are they even considered retirement plan contributions? What are the Plan's options from here? Employer-A wants us to send all the funds back to them. My understanding is we must keep A's employER contributions in the Plan which will be used to offset future employER contributions for its enrolled employees. We are unsure if the money sent to us as 'pretax deferral contributions' should be distributed to the employee (per usual) or if some other type of arrangement could be made."

"Plan fails 2021 ACP test. A refund of match is made to the HCE in February 2022. Participant account lost money for the 2021 plan year. Refund to HCE is made timely and net of losses. Well known national 401k vendor prepares 2022 1099-R form, boxes 1 and 2a are the same amount and equal the gross amount of the refund and not the net amount that the participant received after losses. Is that the correct way to do the 1099-R form? For example, I always understood that had there been earnings on the account, the participant would have received a 1099-R form for the gross distribution (including gains) as long as it was timely distributed. Therefore if there are losses on a timely distributed refund, the 1099-R form should reflect the actual distribution amount after the losses are applied. Am I incorrect or missing something -- or was this 1099-R improperly prepared?"

"A wellness program imposes a surcharge on tobacco users who do not complete a tobacco cessation course. If a person completes the requirements to have the surcharge removed mid-year, could the surcharge that has already been paid during the current plan year be refunded? I'm thinking that would be an impermissible, retroactive election change. Prospectively, the surcharge could be removed and the participant's election automatically decreased assuming it's an insignificant change in cost. Any thoughts on the refund of the surcharge previously charged during the year?"

"401k Safe Harbor Profit Sharing Plan with 1 Year of Service (12 mos 1000 hrs) wait, dual entry. Owner's wife started assisting owner Jan 2020 with business. When COVID hit in March 2020 her services increased significantly and remain so to current (1000+ in each year). Spouse was not paid in 2020 or 2021 but was paid W2 wages in December 2022 and permitted to contribute 401k as an eligible Participant in the Plan. It is not clear to me if there were financial reasons the business did not pay the spouse in 2020 and 2021, and not sure if that necessarily matters. Question: Though her prior services went unpaid, is the Plan permitted to count her prior years' hours of service for eligibility purposes? I have read through many articles that debate the fine nuances of this and a reference from an ASPPA conference Q&A from more than 10 years ago. I am hoping someone may know of something more recent. (if so, she would have been eligible 7/1/2021 with $0 415 compensation, no contribution due.)"

"I have a small Profit Sharing Plan that wants to terminate ASAP. I wanted to confirm we could accomplish this with a 15 day notice to participants so I checked the IRS website and found the below information under 'Plan Terminations -- Required Notices'. Did we lose the 15-day notice and/or 30-day notice of Termination for small plans?"

"Participant hasn't terminated and remains on the books but only does minimal consulting some years. He hasn't earned over $1000 for over 5 years, so clearly hasn't worked at least 1000 hours in that long. But he does defer 401(k), even when he only works one day in the year. Would this participant continue to be considered active and therefor share in top heavy minimum for the years he does receive some income? (Plan has just become top heavy)."

"Is it OK for a Plan to have a different hours requirements for different classes to get an annual Pay Credit in the Cash Balance Plan? For example, can I design a Plan to require 1,000 hours for Pay Credit for Direct Owners, 500 hours for non-HCEs and 800 hours for Non-Direct Owners? I think this would be OK if the requirements are more liberal for non-HCEs. If I am correct, what would be the best way to accommodate with a Prototype/VS software?"

"A new company wants to join an existing MEP effective 6/1/23. Do any of the 2023 limits need to be pro rated for them, or because the plan was in existence for all of 2023 that takes precedence and they get the benefit of the full numbers?"

"Why would an adoption agreement limit Roth contributions to 50% of compensation?"

"Is there a preferred (or possible) method to selecting a cafeteria plan's plan year where the underlying benefit components do not all run on the same period (e.g., life insurance is on a 1/1-12/31 plan year, but medical/dental are on a 7/1-6/30 plan year)? Or would you need multiple plans?"