"Client applies for a residential loan August 1, 2023. Paperwork supporting the purchase is not provided until today. The settlement date was August 7, 2023. Would you allow this to be a residential loan? Clearly the funds are not being used to acquire the home since the purchase has already settled."

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"We have a client that is an LLC taxed as a partnership that also issues a Form W-2 to the partners. This year the partner's have large losses on the K-1 box 14a. We would normally add the W-2 income and the K-1 income together for plan compensation (after the appropriate SE tax calculation when K-1 is positive) but someone in our office thought they remembered reading that the negative K-1 income could be disregarded and only the W-2 income used. Does that sound familiar? I do not remember reading anything about that so wanted to see if anyone else was familiar with it. The negative K-1 amounts are slightly less than the W-2 income so the partners will have a small amount of income for the year."

"Recently applied for a coverage determination with PBGC for the following LLC filing as an S-corp. Owner is Joe owning 100% and Mary (spouse of Joe) is the other employee, no ownership. First determination said that the LLC is not a professional entity. Second determination was for substantial ownership and it was determined that 1563(e) does not apply. The LLC is not treated as a corporation under 1321(d) thus Joe's ownership interest cannot be attributed to Mary and that Mary does not meet the definition of a substantial owner. Also indicated that Mary is not a substantial owner as only Joe owns 100% of the LLC. Interesting, right? Now, for determining HCE status, do we agree 318 steps in here i.e. I do not have to run non-discrimination testing? Top heavy is not an issue as providing way over the limit."

"So, suppose you have a safe harbor (match) plan where some newly eligible (eligible 9/1/2022) participants were inadvertently excluded for the last 3 months of 2022, but were then properly allowed to defer beginning 1/1/2023. Under 2021-30, Appendix B, .05(9), you have the reduced QNEC requirement if you satisfy certain conditions. One of those, in .05(9)(b)(ii) is that the Notice be given 'not later than 45 days after the date on which correct deferrals begin' ... Well, we're past that date -- they started deferring 1/1/2023. But it doesn't seem reasonable that you would be precluded from using the lower QNEC, particularly since the Safe Harbor correction method is otherwise allowed until the end of the SCP correction period. Now that SECURE has potentially loosened the EPCRS, it seems reasonable to use the reduced QNEC in this situation, other than for terminated participants (and even that piece is debatable, but I'd play it safe). Any thoughts?"

"I have a plan that inadvertently did not offer 401k enrollment to eligible employees (non-auto enroll). However, there were no contributions by any HCEs or NHCEs for any of the plan years involved or any matching contributions. What would be the basis for the missed deferral opportunity? Should it be assumed that it is 3%?"

"We have tax client (not a TPA client) who we just discovered had plan assets exceeding $250,000 as of 12/31/2022 for the first time and it is an owner-only plan. This is a Sch C client who has his 1040 extended and so taxes are due Oct 15. We didn't know about this in July so we did not file an extension (nor were we engaged on the plan.) We've never filed 5500s under the extended tax return rule. I'm reading that as long as the plan year and tax year are the same and as long as the 5500 is filed by the tax return due date including extension, it is not late. I want to be 100% on this since I don't want to risk missing the $500 penalty opportunity and risk a much larger late filing penalty which will then be blamed on us."