"Hi Question for 401 gurus. Non-HCE participant deferred $8,000 on 2022 w-2 (1,000 per paycheck) and terminated after 8 paychecks. Just found out that they deposited another $1,000 without a paycheck i.e. $9,000 was deposited during 2022. As only $8,000 was on the w-2, how is this corrected? Earnings are pennies as all invested in cash. Thanks"

"I'm not sure if this is the correct message board but here goes: Company A buys Company B and each have their own 401k plan. All Company B employees now participate in Company A;s 401k plan. No new entrants or contributions to Company B's plan. They will terminate company B's 401k plan, but have not done so yet. Can Company B employees, now working for Company A, take distributions from B's 401k Plan? Have they had a distributable event? Thank you"

"A plan is sponsored by a 1-man LLC who's being taxed as a partnership, though the owner receives both SE income and W-2 wages (I've seen a thread on these boards regarding both types of comp being paid from such an LLC, and the consensus seems to have been that, though rare, it is possible.) Plan Comp is defined as 415 safe harbor comp. The TPA is asserting that Schedule E income (for the K-1 income he receives) should be included when performing the val, however, we weren't able to find anything in the regs specifically allowing its inclusion - does anyone know if this type of income can be included under the 415 safe harbor definition? If possible, a cite would be most appreciated. BTW, the K-1s did not show any Schedule E amounts in boxes 14, 4a, or 4b (they were all zero), and no Schedule C was required to be filed. Thanks in advance for any assistance offered."

"Hello - a client has a new plan with a short initial plan year in 2022. (200 eligible; 20 participant account balances). This plan can use the seven months or less rule for the the audit for the short plan year to be deferred until the following plan year. Since there are only 20 participant account balances (restaurant group), does this mean the plan does not have to have an audit for 2022 or 2023? Thank you for your thoughts and any guidance you may have - not able to locate anything addressing this situation."

"I have a question regarding 2 corporations owned by the same person. Company A is 100% owned by Owner A and sponsors a 401k/PS plan. Owner A is acquiring a new company B with different employees in the same industry. Company B does not currently sponsor a pension plan since it is a new company. Is Company B permitted to establish a separate 401k/PS for the benefit of its employees, or must these employees participate in Company A's plan? Am I correct to assume NDT will include employees from both company's? Company A has 60 employees and Company B will have 40. I'm wondering if there is a plan design available to get around the large plan filing requirement."