"If you withdraw from conversion amounts in a ROTH IRA before age 591/2 and have not met the 5-year rule, the conversion amount is subject to the 10% penalty tax because you are not age 591/2 and the earnings on the conversion amount would be taxable, as well as subject to the 10% penalty, correct? But if you are over age 591/2, then no tax or penalty amount applies but you will be taxed on the withdrawal of any earnings because you have not met the 5-year rule, correct? If you withdraw money from a Roth 401k account and you are under age 591/2, you can withdraw contributions without tax or penalty but earnings will be taxes and also subject to 10% penalty, correct?"

"I have a new prospective client that currently has a SIMPLE IRA plan that has been in place for over 5 years and has 15 employees. I want to make sure that the advisor is relaying the correct information to the client. The advisor has told them that moving to a 401k would allow them to receive the start up credit plus the employer contribution credit plus the automatic enrollment credit. Does this sound right?"

"A plan is frozen in 2022 -- both accrual & participation are frozen, and the plan is not underfunded -- not qualified for 401a26 exemption. At the same time, there are some employee meet the eligibility requirements before the valuation date which means they are eligible to enter the plan if the participation is not frozen. In this case, should these employees be counted as non-excludable employees in 401(a)(26) (ignoring the minimum participation relief in SECURE Act)?"

"DB plan effective 1/1/2021. Owner was 73 years old in 2021 and the vesting was 100% as of 12/31/2021. Plan was not signed till July 2022. So, when is the RMD due?"

"[T]rustee-directed pooled plan [is] moving to a daily platform with us as TPA. It is a Sept 30 plan year end. They've used an insurance company as record keeper/administrator for many years who did testing, 5500 and an annual statement. The plan sponsor mentioned she wanted a long separated participant out but they had a loan. I ask are they making payments -- answer no. I said oh the insurance company did a 1099-R then? She said no they don't do that, she does 1099-Rs. So there is a long delinquent loan.... Once it transfers to the new record keeper the loan will be on the books unless they can convince this person to take distribution before Oct 1 of which I am hopeful.... How can you go back years and default a loan with 1099-R? I will ask how long ago has this been going on.... I'm surprised this insurance company did not say something -- they have the record keeping, issued the loan, do the testing, admin and 5500. Comments?"

"A client sent us their census information this past week, and naturally their ADP Test failed miserably for 2022. I am preparing a communication explaining the owners' the option of amending the plan retroctively to provide for a 4% Safe Harbor Nonelective for 2022, or take a sizable refund of their deferrals. Question: We're well past March 15. Assuming the client will elect to contribute a $12,000 Safe Harbor contribution to make this go away, is there still a requirement that they also pay the 10% excise tax on the excess deferrals, or is the concept of an 'excess' gone by providing the 4% Safe Harbor?"

"For a Form 5500... let's say the year end 2022 plan assets (snapshot as of 11:59PM on December 31, 2022) was $652,325. However, profit sharing contributions / contributions attributable to the 2022 plan year are made on March 2nd of 2023 for the 2022 plan year.... [Should those assets] be included in the 'year end plan assets 2022' for the 2022 Form 5500?"

"The plan document for the ERISA 403(b) plan says that distributions are only allowed in lump sum payments. However, the RK is allowing participants to take RMDs in installments or annuities (and in excess of the RMD amount, which is a separate issue). Is there an overriding provision somewhere that allows this regardless of what may be in the plan document? Or am I going to have to amend my document to line up with the RK?"

"I have a Cash Balance Plan that is looking to buy an investment property and renovate it, hopefully as an asset of the Plan. The property is about $1.35 million, then they would want to spent $1.5 million to renovate it and create a multi-unit rental. I know owning the property and generating income via rentals isn't an issue, as long as all revenue goes back into the Plan since it is a Plan asset (at least that's my understanding)? Can they also pay for the renovation out of Plan assets?"