"I have a sponsor that changed payroll systems in 2021. As a result of that change , overtime was not calculated correctly in 2021 through 2023 for a group of participants. Sponsor self-discovered the error in late 2023 and paid this group of employees back pay on a separate 10/20/2023 payroll. The plan is a 401(k) deferral only plan covering only collectively bargained employees. The plan does not include an automatic contribution arrangement. According to their plan document, the back pay is eligible compensation/allocation pay. The sponsor did not take elective deferrals for this separate payroll. We didn't learn about this issue until after 1/20/2024. No notice has been provided to the affected participants. I'm trying to figure out if there is a way to turn this into a notice only or zero QNEC correction. My conservative view is that correct deferrals began with the payroll following 10/20/2023, which would have started the 45 day clock for a notice only correction. Thoughts?"

"I have two 401(k) Plans that are a controlled group, and they fail both 410(b) and average benefits tested separately. I'm testing them together, but the issue is one plan has a basic SHM and the other plan has an enhanced safe harbor match of 100% up to 4%. I believe that both plans should have the same match formula but I'm having difficulty putting my eyes on any articles or regs saying this to confirm what I believe. I read something recently where it mentions if there's a 3% safe harbor non-elective then both plans should have the same formula and the plan without the 3% would have to give the 3% to the eligible participants. Has anyone else ran into this issue with safe harbor match plans that are required to be aggregated for testing?"

"I have an issue where a 2023 contribution that was intended to be made as an employee contribution was erroneously made as an employer contribution (due to a new employee being unaware of the correct forms to use). Can this contribution be recharacterized as an employee contribution? If so, would we use ECPRS or VCP?"

"Can/must a church having a 501(c)(3) determination and offering a nonqualified deferred compensation plan limit eligibility to a 'top-hat' group? Also, as I understand 457(f) doesn't apply in the case of a church employer, can plan accounts avoid current taxation upon vesting, as usually occurs with other tax-exempt organization nonqualified plans?"

"I'm doing a final PS allocation for a calendar year plan that was terminated 9/15/23. That was the final pay date before they were purchased, and all payroll stopped then, and the purchase agreement required that the plan be terminated as of that date. I couldn't convince them to let the plan run until 12/31/23. The PS formula is integrated at 80% SSTWB + $1. So for 2023, if it was a full calendar year, that would be $128,161. x8.5 /12 = $90,780.71 (or something like that, depending on when you add the extra dollar). The question is what to do with the integration level. This is below 80% of the annual limit, so do I have to use 4.3? Or do I get to still use 5.4% because it's 80%+ of the applicable limit once the pro rating is considered? My software gives me an error on the latter because 56.667% of the TWB is not at least 80%."

"I just need some clarification. I know how to do the calculation. The profit figure to use is line 7 of the Schedule C? Line 7 profit multiply by 1402(a)(12) deduction (.9235) calculate and deduct FICA calculate and deduct MED Back into plan contribution Add it all up and the result is Line 7 Right? I want to explain it succinctly to the financial advisor."