"There is both K-1 income and W-2 income for the former partner. There seems to be some gray in this area. It seems clear that the compensation for the former partner is the sum of K-1 income and W-2 income. But, how is the K-1 income calculated? Do you just take the K-1, taking into account a PROPORTIONATE share of the common law employees' contribution (let's say 6 months for sake of illustration) or use some other method?"

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"My ex-husband took early retirement at 55 years of age back in Feb 2023. Since he is drawing from that pension how will I receive my payment? Will I get an actual monthly payment or a payment into a pension for when I retire? Thank you"

"I've got a plan that we've been working on for a couple of years, and the three original partners (who were the only HCEs) have life insurance policies in the plan that they rolled in when they left their previous firm 20+ years ago. Since I took over, I've been telling them that they therefore have to offer life insurance to all participants, and provided them a cobbled-up form to have the other participants decline such an election. I can tell you that no NHCE has ever opted for life insurance, though whether that is a result of those forms, or just not saying anything.... well, I've advised them as best I can on that score. Anyway, 2 of the 3 original partners have left, and their policies are now gone. There are new HCE partners to replace them, and they do not have insurance. The last doesn't want to come up with $250K to purchase his policy for the plan. I'm wondering if I can somehow grandfather that in and have the document say that it is no longer offered going forward effective on some date. Am I going to run into a BRF issue?"

"There's no issue with a Plan design of: Profit Sharing (and Cash Balance) -- Immediate Entry 401(k)/Safe Harbor -- 21 & 6 mos. Obviously we'd have to pass all testing, and as far as I see there are no complications/issues. They'll just have to make a Profit Sharing contribution for everyone, which will be subject to vesting, but wouldn't need to give Safe Harbor. I'm not overthinking this, right?"

"Does anyone know the penalty for a late filing of the 1094/1095? Have a client that messed up and never provided the information. Will be filing with the IRS today, just wanted to let them know what to expect the penalty to be."