"Does anyone know or have a reference as to whether a small employer subject to the automatic increase in the deferral limits for a SIMPLE starting in 2024 can elect to make the higher contributions? Notice 2024-2 clarified that employers with more than 25 employees can elect the higher limits and must make the higher employer contributions (4% match or 3% NEC) but are the small employers able to elect the higher employer contributions?"

"An employer funds their discretionary match per pay period. They also calculate a true-up at year end. In order to receive the true-up, if any, the employee must be employed on the last day of the plan year. Do I need to run Benefits Rights and Features on the true-up provision, or does the ACP testing suffice?"

"Company A and Company B are owned 50/50 by the same two individuals. Each Company sponsors their own 401(k) plan (Plan A and Plan B), neither which are safe harbor. The owners and their spouses are eligible to participate in both plans. Plan B only employs the owners and their spouses. Plan A runs on a fiscal year ending 7/31, Plan B runs on the calendar year. It's my understanding that we have to ADP test these plans together, but I'm unclear on how to do this. Do we need 7/31 census data for the calendar year plan and then run the combined ADP test, or do we need 12/31 census data for the 7/31 plan and then run the combined ADP test, or?"

"Plan has a NCP PS allocation with each in participant in their own group. For 2023, the client has made 3 groups. Group 1 & 2 = 3% Group 3= 0% Do I need to run a 401(a)(4) General Test or if they pass coverage, am I good?"

"Regarding the three (or two) years period, does this mean any employee that worked PT, aggregate for 2021,2022 and 2023, (now 2022 and 2023) OR anyone hired in either 2021, 2022 or 2023) and worked PT in any of these years, must be given the opportunity to defer? Semantics or stupidity on my part? How can an employee be considered LT with only 2-3 years of service?"

"Sole prop, has DB and 401k/PS plans. 2022 401k/PS (first year) was deposited into the DB account in October (just found out). DB is terminated 11/30/2023 and all was rolled over into an IRA including the 401k/PS portion (the plan is still active). To add more fun, when DB was rolled over, the RMD was calculated on the full amount i.e. RMD was calculated incorrectly (however RMD included the portion attributable to 401k/PS portion. So, how does one correct all this?"

[My family member (who I"ll refer to as 'Jane') has helped build a company from $0 to a significant current day value and is a valued senior executive. Because of some early-stage company challenges, the company never executed Jane's equity agreement when she first joined the company and because she generally operates in good faith she didn't push for the issue to be dealt with (until now). To their credit the company is now proposing a transaction bonus (% of sale proceeds) to fix the situation. Jane is receiving conflicting information on the following aspects of the agreement and I'd appreciate any thoughts on these issues: [1] Does Jane need to be actively employed by the company when it sells for any 409A or other tax/compliance reasons? Technically she would have already 'vested' the right to this bonus if it were equity and so doesn't seem right that she be held hostage for an unknown amount of time for something she has technically earned/vested. [2] Given that there is some possibility she may not be at the company when it sells (let's say in 3-4 years), does this have the characteristics of a top hat agreement and therefore touch on ERISA? [3] Are there any other concerns/considerations from a tax, compliance or other perspective that she should be considering?"

"Dentist A owns his practice 100%; Dentist B owns his practice 100%. They do no work for each other. Dentists A and B are purchasing practice C and will be 50/50 owners. Practice C hires a dentist who will be doing 75% of the work. Dentists A and B will work there to fill the other 25% of work. There is no referral of patients from A or B to practice C, or minimal. Practice A has a 401(k) with PS. Practice B has no plan. So the question was posed to me -- does practice A need to cover practice C in the A plan? I believe the answer is no. Thoughts?"