"[C]lient deposited $4,300 too much. They asked if they could allocate it as a PS contribution instead of returning it to the company. The plan is a straight SH Match, they don't make PS contributions (it's allowed, they just don't). Problem is, 5 participants who don't defer would receive the PS contribution. No big deal. But the plan has individual brokerage accounts at American Funds. Each of these 5 participants would need an account of which their balance would range from $125 to $236. Hardly worth it..agree?

• Could these 5 participants share one pooled account?
• Would it be best to just pay the overage back to the company?'

"Am I understanding correctly, when filing the Form 5500, the Schedule R is now required for plans even without distributions in the plan year? This just to accommodate the new compliance questions? 2022 instructions for the Schedule R listed additional exceptions for plans without distributions that seem to have been left off of the 2023 instructions."

"I am working through a minimum and maximum illustration for a profit sharing contribution. I hope I have an easy question here. The plan is NOT top heavy. They give the 3% SHNEC. The allocation conditions for the PS are last day and 1000 hours of service. I have two NHCE's who terminated in 2023 and I have one HCE who was employed on 12/31/2023 but did not work 1000 hours. Can I completely remove the three of them from the New Comp testing? OR do I still need to include them in New Comp testing? If I keep them in I have to give them some PS in order to pass Gateway and/or Nondiscrimination testing."

"Long time listener - first time caller... Not my issue, but a question came up in the office. Participant has Pre-tax and Roth 401k dollars. In 2024 the participant is turning 73 and wants to wait until 2025 for 1st time RMD. However, participant requests a source level distribution of only Roth 401k. Secure 2.0 states Roth 401k is not part of RMD. Regular RMD rules state first distribution from your 401k needs to be your RMD, if applicable. However, if you are only taking a Roth 401k distribution, would you need to take an RMD from your pre-tax money? Prior to 2024, I would agree that any distribution would be subject to RMD first. However, now that Roth 401k is not required to be part of the RMD, why would you need to take a pre-tax RMD first? Any guidance would be appreciated - maybe this is something that needs to be clarified or corrected?"

"Sole prop, started biz 7/30/2023, over age 50. Wants a 401k plan for 2023 (ok under SECURE 2.0) Made 125k of net c for 2023. Assume after SE tax adjustment I think I can make the plan effective 1/1/2023 and get the full 30k as deferral, correct? If I start the plan, do I need to prorate the 30 to 5/12th? For PS I can do max 25k and is this doable with either full or short plan year?"

"I am a full time employee enrolled in a FSA plan. My employer changed my work status from full time to part time with no benefits. Do I need to repay my employer any FSA funds I used and can my employer continue to deduct FSA funds from pay check? thank you."

"I'm wondering whether a radio station would be considered a 'service organization' for these purposes. I think it is not. There is a substantial investment in equipment, transmitters, etc., etc., and there's no personal service performed by 'one or more individuals.' Any other thoughts?"

"Normally in those situations we recommend establishing a separate subaccount for Roth money, and conversion is done by election with accompanying physical movement of funds into a separate Roth account within the same plan. Is there a problem with keeping all sources (both Roth and non-Roth) within a signle account and the 'segregation' being done on the recordkeeping level only. I think it is OK but wanted to hear the wisdom of other practitioners. Are there any considerations I need to be thinking about?"