"Announced this morning at EA Meeting that Joint Board will eliminate physical presence requirement for continuing education retro to beginning of this cycle."

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1. "Box 1A. reads 'This return is: [1] the first return filed for the plan [2] an amended return [3] the final return filed for the plan [4] a short plan year return (less than 12 months)' For each return, would '(1)the first return filed for the plan' be checked, or does this mean only for the very first return? I.e., does this mean for the plan year being filed, or ever? It sounds like this would only apply to the very first year being filed, but on the form, it looks like this should be checked each year, since this is not an amended return or final return. The instructions say 'First Return Check box A(1) if this is the first filing for this plan. Do not check this box if you have ever filed for this plan, even if it was a different form (for example, Form 5500).' But lets say, for example, I file 2021 as the first plan year, and now I'm filling out 2022. I guess another way to ask this question, is it ok to leave Box A blank?
2. When submitting the late return, if box D is available, do I still need to write in red 'Delinquent Return Filed under Rev. Proc. 2015-32, Eligible for Penalty Relief' at the top of the return?
3. If I'm sending these in now, in March, would it be prudent to wait until closer to the July 31 deadline to file for the last plan year electronically, which is not currently delinquent, to avoid triggering a notice for the previous years, if it takes them awhile to process these?"

"A 403b has received a request from a non-resident alien (NRA) to do a direct rollover of his account to an IRA. Up until this point the 403(b) has only had cash withdrawals by NRAs, of which it withholds 30% and reports the distribution on Form 1042-S. Because this is a direct rollover and assumedly no withholding applies, the 403(b) is wondering how it needs to report this. Does it issue a Form 1042-S? If so, what is the tax withholding exemption code for box 4a?"

"This is new for 2023 and it is covered in the 5500 instructions. In case I missed something, I thought I'd ask -- it isn't optional right?"

"Secure 2.0 allows mid-year SIMPLE to 401k but is that a two way street? Section 332, Employers allowed to replace SIMPLE retirement accounts with safe harbor 401(k) plans during a year. Section 332 allows an employer to replace a SIMPLE IRA plan with a SIMPLE 401(k) plan or other 401(k) plan that requires mandatory employer contributions during a plan year, and is effective for plan years beginning after December 31, 2023. Can I terminate a SH 401k and replace with a SIMPLE in the same year?"

"We have a safe harbor 401k that allows employee after-tax contributions, so I am running some calculations on what the 2024 test results for our plan would look like under various scenarios. I know that in general, if the ADP test passes with room to spare but the ACP test fails then one can shift / borrow from the ADP test to the ACP test to help pass the ACP test. However, how does this work, if at all, in the case of a safe harbor 401k, since it ordinarily automatically passes the ADP test? Would this tactic not be allowed (and hence constitute a significant disadvantage of being a safe harbor 401k), or would it be allowed to calculate what the ADP test would show and shift / borrow based on those numbers should the ACP test fail?"

"Is the new SECURE 2.0 requirement that allows employers to terminate a SIMPLE IRA mid year but only if the employer 'establishes and maintains (as of the day after the termination date)' a SH 401k plan to replace the terminated Simple IRA arrangement intended to cover M&A situations (where the SH 401k plan is maintained by Buyer and has been in existence long before the SIMPLE IRA)? Or does the employer need to initially 'establish' the SH 401k plan as of the day after the SIMPLE IRA termination date to rely on this mid-year termination exception?"

"I know that you cannot include LTPT in testing for some purposes, and not for others. Basically 'all or nothing' -- that is, 401(a)(4), ADP/ACP, 410(b), etc. What I'm not clear about is, for example, suppose the employer provides that LTPT who defer will also receive a match. Can the employer STILL exclude the LTPT employees, for all the above testing purposes, or must they all now be included for all of the testing? I think it is the former, although it seems counterintuitive, but I'm not certain. (P.S. -- I base my theory that it is the former on the proposed Regs, and nearly at the end under Section f(3)(i) Example 1((a) and (B).)"

"I had a CPA ask this question ... Dentist A sells practice to dentist B. Dentist B decides to assume sponsorship ... Can dentist B take the new plan credits since this is a new plan adoption for his business EIN? Another situation like the above except the selling and purchasing dentist formed a partnership for one year. So the plan adoption went from Dentist A, to Dentists AB partnership, and then to dentists B for 2023. A CPA is asking about this one also. With the partnership in the middle, I told him the credit would not be available in my opinion even though the sponsorship for 2023 is under a new business EIN and this a 'new' plan for that entity. But I told him I'd ask. I'd be surprised if the IRS would give any attention to this credit given the massive PPP and ERC funds given away."