"Calendar year plan -- Plan requires Year of Services defined as 12-month period in which at least 1000 hours is worked with entry on following 1/1 or 7/1. Eligibility determination year switches to plan year after first anniversary year if not eligible. Original Date of Hire: 10/21/2020, Date of Termination: 8/25/2020 (>1000 worked from DOH to DOT)). So not eligible for 2020. Date of Rehire: 11/1/2021, 250 hours worked in 2021. Date of Termination: 4/25/2022. I wonder if this person should have been made eligible on date or rehire although she never worked a consecutive 12-month period."

"We have a 403(b) Plan that restated its document in 2018. The restated document has a discretionary match while the 403(b) Plan has been operating with a 3% Safe Harbor Non-Elective for 8+ years. This restated document is not at all how the plan was being operating at that time, nor how it is currently being operated. The Plan has been failing to follow the plan provisions for an extended period of time, but they would like to continue with the 3% SHNEC. They do not want a discretionary match. What is the process to correct this error?"

"Executive exceeded 415(c) and company refunded the $10,000 of excess after-tax contributions through payroll rather than through the plan. Months later, company convinced plan recordkeeper to remove $10,000 from participant's account and send it to the company. Issues abound! There's still a 415(c) issue because the earnings were never distributed from the participant's account. A 1099-R was never issued (since the amount distributed out of participant's account went to company). Moreover, there's a prohibited transaction here given the transfer of assets from the plan to the company. Welcome other thoughts, but I think the company should unwind as best as possible by returning funds to the plan (with earnings/interest), moving it to the participant's account, distributing it to the participant as a 415(c) excess, reporting it on 1099-R for current year, and then recouping that amount from the participant outside of the plan (since participant would otherwise have a windfall). My main concern is with the fiduciary violation. Would this qualify as a below-market interest loan from the plan to the company, such that it could be corrected via VFCP?"

"In light of the automatic enrollment requirement for new plans (beginning with the 2025 plan year), does SHMAC make sense for a new plan anymore? Since automatic enrollment is required either way, seems like QACA is always better than SHMAC (unless the employer want to give the higher match and immediate vesting). Is there some other factor that I'm forgetting that would favor SHMAC?"

"For plans that set up auto enrollment, is this generally set up with immediate entry, or a longer period, say 3 months? Do participants feel like they are getting a pay decrease when this happens?"

"Currently prime rate is 8.50%. Moody's Bond rate is 6.17%. We have a new plan that wants to allow for loans and was questioning whether they could base the plan loan interest rate off of Moody's. Any thoughts whether that would be acceptable, given the disparity between Moody's and Prime?"

"The age old question -- file an incomplete 5500 without a set of audited Financial Statements, with intent to file amended form later? Plan in question has never filed 5500, multiple years as a large plan. None will be ready by filing of currently due 5500. I'm thinking don't file, and file the sum total when ready and submit under DFVC."

"If new small plans have to be auto enroll soon, how long do they have to keep that provision? Can they set it up for like a month and then take it away? After the first plan year? does it have to stay in indefinitely? Until over 120 poeple?"

"For a new DB plan effective 1/1/2022 that is still not adopted as of today. One of his clients deposited 200k into an account by 4/18/2023 and filed the 2022 tax return without an extension. I do not understand how the broker accepted this deposit without an executed plan/trust document. This client's actuary either never told him about the document deadline or did not do it or dropped the ball or there was a miscommunication, who knows. I do not have all the facts. So, the bottom line, there is no plan document signed by 4/18/2023 and prior to any deposits. Apparently, the actuary is now trying to file form 5300 for an 'advanced determination on the qualification of the plan', whatever that means. Are there any corrective measures that can be done here? Assume no resolution was signed by 4/18/2023."

"Just got word that a sole prop who had already deposited $27K in pre-tax 401k deferrals for 2022 is going to have a negative Schedule C net income. This is the double-tax situation, where when it is distributed it's taxed for 2022 and then again in 2023 because it was refunded after 4/15/23... ?"

"When is a 401-k plan (safe harbor) required to be audited by an independent CPA Firm? I know it used to be 100 employees but I think it recently changed to the amount of account balances? Any information is appreciated."

"Question re: self-correction of an employer eligibility failure (governmental entity adopting 401(k) plan). If the employer will cease contributions to the 401(k) plan (either through a freeze or a termination) within the self-correction deadline and subsequently adopt 457(b) and 401(a) plans, is the appropriate action merging the 401(k) plan into the 401(a) plan?"