"Participant in a plan took a distribution in early 2023 from his account with Provider 1. Never cashed the check. In the interim, the plan transferred to provider 2. Meanwhile, the check got stale dated and Provider 1 sent the proceeds to Provider 2 who put it in their Unclaimed assets account. Subsequently, the funds got paid out to his IRA. The participant is looking for a 1099-R. Neither company is claiming responsibility for the 1099-R. Provider said because the check went stale dated, they have no responsibility. Provider 2 is saying they won't doing it either since the distribution didn't happen on their system. Any idea whose responsibility this is?"

"Plan excludes bonuses. Plan passes 414(s) test, even excluding bonuses -- HCES take big bonuses. Plan passes ADP testing excluding bonuses. Question has been asked as to whether the plan can run ADP test based on full compensation. Well, it CAN, (plan operationally allows for employer to elect any other definition of comp as long as it passes 414(s)) but why would they want to do that? Any ideas as to why this might be beneficial? I'm not seeing it offhand.... maybe allowing some shifting to the ACP test by creating more room under the ADP test?"

"I know this has been asked 1,000+ times, but I'm still not clear on the correct way to start the calculation of an individual's net earned income in this situation:

• LLC taxed as a partnership
• Schedule K-1 Line 14A = self-employment earnings (starting point)

Is then Section 179 deduction on Line 12 of the K-1 backed out from Line 14A, or no? There are no oil and gas depletion expenses, nor unreimbursed partnership expenses from Schedule E according to the CPA."

"I worked for a non-profit hospital with an ERISA 403(b) Retirement Plan from 06/29/2020 to 07/10/2023. The employer does not want to vest the total amount in my plan. They say that: -- In 2020, I worked 968 hours From 06/29/2020 to 12/31/2020 I worked more than 1,000 hours, but hours worked during the last 11 days of the year were paid in the first paycheck of 2021. -- In 2021, I worked 1,647 hours -- In 2022, I worked 1,931 hours -- In 2023, I worked 762 hours

The SPD for the 403(b) Employee Retirement Plan says: 'Year of Service means a payroll calendar year during which you are credited for at least 1,000 hours of service. For this purpose, an 'hour of service' generally means any hour for which you are paid for working for Baptist Health, including payment for vacation, holiday and paid time off hours.'   Regarding vesting: Years of Service Vested Percentage Less than 3 years 0% 3 or more years 100%

My question is: How are the years of service calculated in this particular case?

Section 2530.203-2 Vesting computation period. (a) Designation of vesting computation periods. Except as provided in paragraph (b) of this section, a plan may designate any 12-consecutive-month period as the vesting computation period. The period so designated must apply equally to all participants. This requirement may be satisfied even though the actual 12-consecutive-month periods are not the same for all employees (e.g., if the designated vesting computation period is the 12-consecutive-month period beginning on an employee's employment commencement date and anniversaries of that date). The plan is prohibited, however, from using any period that would result in artificial postponement of vesting credit, such as a period meassured by anniversaries of the date four months following the employment commencement date. (b) Plans with 3-year 100 percent vesting. For rules regarding when a participant has a nonforfeitable right to his accrued benefit, see section 202(a)(1)(B)(i) of the Act and section 410(a)(1)(B)(i) of the Code and regulations issued thereunder."

"For an individual-account retirement plan that provides participant-directed investment, an employer seeks a mutual-fund-only window. It's okay if the window is provided through self-directed brokerage accounts. But it must be limited to funds, and must preclude individual stocks, bonds, and securities other than shares of registered-investment-company mutual funds. The selection of mutual funds must not be limited by anything beyond the recordkeeper's and the broker-dealer's operations constraints. Which recordkeepers offer this?"

"Joe owns 81% of the company. Joe and his wife Mary were both the in the plan. Joe stops taking salary and also no longer in the plan but Mary is. Is Mary still an HCE under attribution rules? I say yes. Any comments appreciated."