"This is in relation to a 403(b) Plan. We have an individual who was an employee and a participant in the Plan. The individual had a termination of employment, at which time the individual was eligible for a distribution under the terms of the Plan. The individual never took a distribution, but has since been re-hired by the employer, but in a position that is not eligible for Plan participation. Since the individual is now an employee, is the individual no longer eligible for a distribution by virtue of his earlier termination (note: the individual is not eligible for an in-service distribution, so that issue is off the table)? Would it matter if the individual were re-hired in a position classified or treated as an independent contractor or nonemployee? I realize the terms of the Plan will control a lot of the above, but I'm looking for more general guidance as to how this normally works or if there are any legal requirements that control, regardless of Plan terms."

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"Company A and Company B are a part of the same controlled group. Company A has a 401(k) Plan and Company B has a 401(k) Plan. C is employed by Company A and participates in Company A and Company B's 401(k) Plan. Company B leaves the controlled group, but C remains employed by Company A and has a balance in Company B's 401(k) Plan. Can C receive a distribution from Company B's 401(k) Plan after Company B leaves the controlled group? Is the departure of Company B from the controlled group considered a distribution event?"

"Have a plan that uses a recordkeeper to load contributions with the payroll company with 360 integration. A new participant had contributions withheld but the recordkeeper did not accept the contributions for the participant due to their failure to set up the participant's account. This happened earlier this plan year and the contributions were made a month later. The total amount of late contributions is $58 and the missed contributions were corrected by back dating the contributions. The recordkeeper is telling the client they have to go through VCP and file a 5330. Is this correct?"

"On a webinar and they said something I didn't think was right. SECURE 2.0 only says that as of 1/1/2025 the plan must be an EACA. An EACA need not be applied to all eligibles -- it can be applied only to new hires (ok I don't get the extra time for my ADP test). On the webinar they felt that the best reading was that the auto enrollment had to be a sweep on 1/1/2025, and pick up all eligibles. But to me it is clear as day that only new hires must be subject. the statute: 'An arrangement or agreement meets the requirements of this subsection if such arrangement or agreement is an eligible automatic contribution arrangement (as defined in section 414(w)(3)) which meets the requirements of paragraphs [2] through (4).' Nothing in paragraph 2 through 4 has anything at all to do with the groupings of who needs to be auto enrolled."

"This only tangentially related to cafeteria plans, but I don't know what other forum to use. We have a retirement plan customer who has asked us what the 2024 Federal Child and Dependent Care Tax Credit is, so she can determine whether to use this, or use the Dependent Care Assistance Account in her 125 plan. (Don't ask me why she doesn't get this info from her 125 plan administrator, except that perhaps she "handles" 125 admin on her own...). Anyway, trying to assist her, within limits. But the information I'm finding is WILDLY variable, and the IRS forms 2441, and Pub. 503 are from 2022! Some of the information I'm finding says that the Federal Child and Dependent Care tax credit has been greatly enhanced, and that it is available to be applied against qualifying expenses of up to $8,000 for one qualifying dependent, and up to $16,000 for two or more. And, the tax credit can be up to 50%, sliding down to 20% based on income, rather than the previous maximum of 35% sliding down to 20%. Does anyone know of an accurate source to determine the correct answer? Or does anyone know the answer already?"