"An overfunded 1-life DB plan terminated, with the final return filed for PYE 9/30/22 -- all of the assets were distributed in 2022. An RMD was paid, the assets representing the participant's remaining PVAB were rolled over into her IRA, and the excess assets were transferred to a new 1-life qualified replacement 401(k) plan whose first PYE was 9/30/22. The excess assets were placed in a suspense account within the QRP, with only a small portion allocated to the participant by 9/30/22. Is only her 9/30/22 balance used in calculating her 2023 RMD, or do you have to also include the amount that's still in the suspense account for this calc? The plan also excludes service before the 10/1/22 effective date of the plan, so she's 0% vested since there's a graded vesting schedule and NRD has the 5 YOP requirement. I cannot recall -- is it DB or DC benefits that are always considered 100% vested for RMD purposes regardless of what the vesting schedule indicates? If the actual vesting can be used, is she not required to take a 2023 RMD? I'm also hoping that the terminated DB plan can be disregarded for this purpose. Has anyone been involved in such a situation?"

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"What do folks think 'substantially same employees' works out to be in real life?

'Section 45E(c)(2) Such term shall not include an employer if, during the 3-taxable year period immediately preceding the 1st taxable year for which the credit under this section is otherwise allowable for a qualified employer plan of the employer, the employer or any member of any controlled group including the employer (or any predecessor of either) established or maintained a qualified employer plan with respect to which contributions were made, or benefits were accrued, for substantially the same employees as are in the qualified employer plan.

'Example A: ER has SEP -- covers only the owner because the other employees don't have enough service. Starts 401(k), due to shorter service requirements, 10 employees (including the owner) are part of the 401(k).

'Would that be different employees because the employees weren't covered by the SEP? or because they could have been covered by the SEP if they had more services, they are considered substantially the same because they could have been covered? I think they are different, they didn't actually have any benefit in the SEP so don't count. see 'contributions were made, or benefits accrued' So I think for Example A, the full gamut of tax credits would apply. Do others agree?

'What if the ratios were different? say the existing program covers 30% of existing employees, new plan covers 50% of employees? Anyone have thoughts on the cut off or what reasonable math test to use? Is there guidance somewhere?"

"Does a person need to be enrolled to sign the 5500 for a Client, assuming that the Client has provided [1] proper written authorization for the TPA to sign for this Client, and [2] the Client provides the TPA with a hard copy form (as PDF attached to an email) which is signed and dated by the Plan Sponsor? Our normal practice is for the Client to login to our portal and push a button that enters their DOL Credentials, and then push another button to submit to the DOL. Unfortunately, we have ONE client that find that too complicated, so I am considering options."

"We are a small TPA firm and each year we prepare about 40 1099Rs on behalf of our clients. We currently use FT William to prepare paper forms. I was looking into the IRIS system and was wondering if anyone has had any experience in using the system to prepare 1099s for their clients."

"New Plan Sponsor has joined Controlled Group which includes many 5500-EZ filings (legacy style perhaps). Although the new Plan Sponsor has assets under $250K, they must file due to the Characteristic Code 3H situation. The other 5500-EZ's are filed on an accrued basis. So here's the question - EOY had zero assets (cash basis). Contribution was made after EOY. Need to file for prior year, or just wait until the current year ends?"

"Participant (80 yo) took an RMD in 2022 and a total distribution in 2022. His 2022 profit sharing deposit went in in August 2023. Now rolling that amount out of the plan. No 2022 balance to calculate his 2023 RMD prior to the rollover. What's the procedure?"

"We have a plan where the ER match was incorrectly being applied to both Pre-Tax Employee Contributions and Roth Contributions. Essentially, they match 50% up to 6% of employee compensation, but an additional 1.5% was being additionally (and incorrectly) applied to the Roth contributions above the 6% mark. What are the proposed fixes for this for purposes of the audit? We were initially thinking potential corrective distributions or some kind of reversal of the match by offsetting future ER contributions. Are there any other thoughts on how to apply a fix to this?"