"Plan provides for immediate entry for deferrals and Safe harbor non-elective. Profit Sharing requires 12 months of service. Plan is not top heavy. In 2023 an owner's son got hired and deferred and is getting the safe harbor along with 6 other NHCEs. They all are getting the 3% safe harbor. I am testing the plan using cross testing. This passes non-discrim testing for the >12-month group but fails for the <12-month group. I'll have to allocate profit sharing to the <12-month group to pass testing. Or does it need to be allocated as QNEC? In hindsight, the plan should have excluded HCEs from the safe harbor non-elective. But that is obviously too late."

"We have a Safe Harbor Non-Elective plan that wants to terminate the plan in January of 2024. The plan's only participants at this point are the owner and his spouse. What would be the requirements to terminate the plan? The owner would like to terminate the plan as early as possible."

"An RMD was requested on 12/29/2023. The fund company didn't process it until 1/2/2024. They said a 2024 1099-R will be generated since the distribution wasn't actually done until 2024. How is the handled by the participant regarding his taxes? He is expected to reflect a 2023 RMD but will not have a 1099-R to show for it. in 2024, he will end up with 2 1099-R's."

"What is the correction method for an operational failure to exclude rollovers when applying the $5000 involuntary cashout distribution rule in a plan to termed participants? The plan has operated since 2018 as if rollovers were included. Do we go back to each prior plan year and look at the small accounts that should have been cashed out and cash them out now in 2024 even though the vested balance could now exceed $5000. Thank you for your thoughts."

"Bob owns his own RIA 100% pushing investments. He also owns a 50% stake in an insurance business. No control group. The insurance business has 4 EEs. If they setup a 3% SH 401(k) plan I don't have to worry about Bob exceeding the 415 limit if he maxes out the RIA business. Correct Of course I need to watch the 402(g) limit."

"I just can not fathom a PT worker wanting to contribute to an employer 401(k)- I can't be the only one!! No one has said anything about a LTPT employee doing an election form with either $0 or 0% of pay, which would appear to solve the problem. I would think clients will scream like stuffed pigs if they have to bring in LTPT employees in any event. At least some of mine have. If I change eligibility to 1 YOS and drop the hours requirement, I don't think you can do that for only deferrals as well I don't think software can handle it; and keep the customary age 21/1,000 hours within a 12 month period for the SH and profit sharing contributions, if any are to be made. I would think the other options would either be elapsed time (but this would apply to FT as well) or change eligibility to age 21/500 hours, but that again would apply to all eligible. Then again, and pardon my ignorance, the 500 hours is for entry or entry and contribution, or both? Too many changes to digest -- starting to question whether this is worth it."

"Calendar year DC plan with a non-elective discretionary employer contribution. The plan document is written with the following allocation condition to receive the non-elective: 'To be eligible to receive such Non-elective Contribution, the Participant must be employed by the Company on the date the Company makes the Non-elective Contribution.' The plan administrator will fund the contribution on March 1, 2024 for the 2023 plan year to only eligible participants actively employed on March 1, 2024. This is a new one for me, I was under the impression that you could not have an allocation condition beyond the end of the plan year. Am I wrong? Do the regulations allow for this type of allocation condition? Or can the word 'makes' be interpreted differently (e.g. 'makes' means the plan year to which it is allocated, or does it mean the date money is deposited to the plan)?"