"I just like to be 100% because RMDs are critical as you know given the potential penalty. Participant has pretax and Roth in a 401(k) plan and is required to take RMD now in 2023. The RMD is based on the account value in total -- but I think the participant may allocate the RMD between pretax and Roth as they choose?"

"I understand the missed deferral is treated as a QNEC. I'm unclear if that is just from the ER's perspective and it needs to be deposited into a source named QNEC, or can be put into the 401k source, since it will be 100% vested there etc. Also, the missed match, I think it can just be deposited into the match account, not a QNEC account. (Lost earnings included in above)."

"Situation is:

• Employee & child are covered as active under an employer group plan
• Employment is terminated and the employee + child elect COBRA
• Several months later, the employee becomes entitled to Medicare

Can you please confirm if this second QE qualifies the child for the additional 18-months (total 36 from the time the employee terminated employment)?"

"Ever have a client ask if they can add a DB plan when they already have a SEP, and then you have to tell them the 5305 Model SEP document precludes a second plan? A lot of times these sole proprietors have NO idea what sort of SEP documentation they set up years ago -- so I was wondering it might be 'obvious' that a custodian like Fidelity, Schwab, Merrill Lynch, etc. would or would not clearly be using a proprietary SEP document. So I wonder -- is there a reasonably accurate list anyone maintains that would say 'THESE guys definitely use their own SEP documents, but THIS custodian issues its customers the 5305, so be careful?' "

"Curious how folks are handling the situation of a participant who receives back pay for prior years. Are you making corrective contributions for missed deferral opportunities and any employer contributions with respect to the back pay? Treas. Reg. Section 1.415(c)-2(g)(8) provides that it is generally taken into account for the limitation year to which it relates. So for 415 (and 414(s) testing comp) purposes, it would be included for the prior year(s) to which it relates. However, back pay is reported on Form W-2 for the year of receipt. So, if a plan uses a W-2 definition of comp, it seems that the back pay would be picked up in the year of payment, even if the individual doesn't have 415/414(s) comp to support it. It seems odd to me that the timing would differ, but I suppose not everything in the wonderful world of ERISA makes sense."

"I just wanted to make sure my thinking was right in terms of a formula for a Cash Balance contribution for an HCE. I know you can put either a percentage or a dollar amount as the set benefit, but does a formula like this work: 20% of compensation up to a maximum of $50,000? It would only be for the HCE, I just wanted to make sure that it was OK to put the cap on the benefit like that."

"Participant (NHCE) passed away in mid 2022 but the company payroll dept continued to send her regular 401k amount for deposit into the mutual fund account. It wasn't withheld from any pay; it just kept coming out of the company bank account, along with the match. This went on for over a year, spread across 2 plan years. Roughly $10,000 in 401k and $8,000 in SHMatch was deposited that should not have been. The deceased participant's account (100% vested) was paid out to the beneficiary, including these excess 401k and match amounts. Is the only course of action to go back to the beneficiary to reclaim these amounts? The plan sponsor is reluctant to push too hard from the beneficiary but there is no other way, correct? If the beneficiary does not pay it back and the plan sponsor does not pursue it further, is there an amount the plan sponsor owes to the plan to make up for these excess amounts?"

"The client has until the filing of his tax return to fund the 3% safe harbor. He is making the safe harbor on a monthly basis. Is there is an issue if he does not make the payment for a couple of months when the cash flow is low?"

"Client currently funds 7% Profit Sharing to all participants. This is cross tested plan. They also allocate the 3% to all participants. For the upcoming plan year, the HCEs will not receive the 7% - testing will not be an issue. However, the client wants to know if they can allow the HCE to decide if they will take the 7% as cash or defer into the plan. The 7% would be paid as wages in the current plan year and deferred to the 401(k). If the employee has already deferred for the 2023 plan year, the 7% would push him over the deferral limit, so he would be capped at the 402(g) limit. I thought the IRS had some guidance when you allow the employee in this case to take the cash or defer. I am trying to figure out if the client is opening themselves up to an issue down the road."

"I inherited a takeover plan that was not tested last year. The plan uses prior testing method and is not safe harbor. What are my options?"