"403(b) plan that failed ACP. For a variety of reasons the refunds were not made to the HCEs within the 12 month period after the year in which the failure occurred and the CPA audit picked this up. Keep in mind for 2023, they wouldn't be required to audit because of the new rules with participant counts and balances. From what I am reading, it looks like correction is make the distributions, which has occurred, but then you also must provide a QNEC to 'ALL' NHCEs eligible to defer. BIG problem. That alone throws them into an audit for 2023 because participants who 0 balances who we could normally exclude from the participant count will now receive like a $20 QNEC and now have a balance.... Anyone else read it other than ALL must receive and maybe just those who would have received that year? ... Next question, maybe I can figure a way to pass ACP after all. Is shifting allowed in the 403(b) from ADP to ACP. If so, how would that work. ADP isn't required to be tested so can I shift as much as I want to ACP and therefore it would most definitely pass. Any thoughts would be so appreciated."

"A construction company subject to prevailing wage laws sponsors an HRA funded via a trust. Contributions are made to the trust for each hour worked, and the trust reimburses participants when they incur medical expenses. The trust also pays Plan audit fees and legal expenses. The question is whether the company can take full prevailing wage credit for all contributions to the trust if a portion of those contributions are used to pay Plan audit fees and legal expenses rather than provide direct reimbursement benefits."

"There is a PBGC letter that the 30% cap on asset sales of small companies does not apply if the asset sale occurred after a mass withdrawal. I wish I had saved it, but did not. Can anyone point me to a link to that PBGC opinion, or anything else relevant. After a mass withdrawal, and without that 30% exception, it seems that the entire value of a small company could be forfeited."

"This is just a Profit Sharing plan - Sole-Proprietor (only participant), with Schedule C net profit of $105,533. After reductions, compensation used for PS purposes is $98,077.33. If we wanted to fund 100% of compensation, do we have to worry about deductibility?"

"Takeover situation, CB Plan doc refers to 'standard' definition for HCEs. 401(k) Plan refers to Top-Paid. Small combo (6-7 total, 2 owners, 1 highly paid non-owner). What does it mean? Which definition prevails? IMHO it boils down to if the highly paid non-owner individual does get the 7.5% Gateway or not?"

"Plan was setup as a Safe Harbor Match. Unknown if notices were handed out to the employees or not but the client was advised it needed to be done and were supplied. Now the Trustee refuses to make the actual Safe Harbor Match. There are employees that defer and the plan fails discrimination testing. First year filing, besides informing the client we will no longer handle their plan since they won't follow the rules are there any other options? Chances are since they never filed they will continue to operate this way and the chances of being discovered are probably fairly low. Do we just cut them loose and hope that it is discovered one day?"