"The information indicates that it applies to taxable years beginning after December 31, 2023. Since catch-up is a participant contribution and they used the word Taxable years, does it impact the catch-up due to plan limit, 415 or ADP catch-up in early 2024? Example: Plan year is 2/1/23-1/31/24. Plan fails the ADP test. It is my understanding that any catch-up due to an ADP failure become catch-up as of the last day of the plan year. With SECURE 2.0 does that mean, anyone over the $145k threshold, their ADP catch-up must be Roth? If so what do you do if they did not make enough contributions in 2024 to cover the ADP catch-up amount?"

"We did a proposal for a CB plan for a sole prop, effective for 2015. Since few if any brokers understand cash balance plans, I insisted on going on the call. Broker refused to have us as TPA attend initial sales call, sold plan to a physician with 2 NHCEs who have been terminated for years and are fully vested. Physician was told by broker that he could contribute $250k per year. Small wonder why he did not want me on the sales call. The contribution was close to the max in the range, but still short of the max PVAB for plan years prior to 2021. For 2021, plan definitely overfunded. Client on extension for 2022, I quote a $0 as plan definitely overfunded, with a -11% ROR. Client over 70, not sure, but can he rollover a portion of the overfunded to an IRA and possibly make a contribution? Would just kick the can, I realize. Alternatively, freeze the plan and establish a PSP for 2022 as long as the contribution made and the plan dated prior to the due-date of the extension? Of course another alternative is to drop the client entirely, as a waste of my time."

"We have a CB plan terminating with excess assets. The CB benefits are offset by a DC plan. Upon plan termination, excess assets will be allocated in a non-discriminatory manner. The question is how we properly account for DC balances in computing the allocation of the excess assets. I would think, that so long as the allocation of the excess could be reflected in a formula that would still pass 401(a)(4), taking into account the offset, it should pass. The alternative would be to allocate assets to all participants, even those who never had a positive benefit in the CB plan due to the offset. Guidance on this seems sparse or non-existent. Thoughts?"

"401(k) plan with a recordkeeper (XYZ) charges a fund fee/Advisory fee/charge/whatever you want to call it -- of (x basis points -- already determined by the Plan Fiduciary to be 'reasonable'). This fee is billed to the EMPLOYER, who pays it, so that participants' accounts are not charged this fee. Employer now wants this fee to be charged directly to the accounts of terminated participants only. Assuming this fee is 'reasonable' -- and some procedure can be worked out between the recordkeeper and the Employer as to the mechanics of how it is processed -- I'm not sure it is necessarily a problem, but it certainly makes me squeamish. Would probably pass BRF testing -- I'm more concerned about possible PT problems. Do any of you have plans utilizing such an arrangement? We have a few plans that charge a nominal administrative fee to terminated participants only, but nothing like the above arrangement."