"Generally I know Profit Sharing Plans say that someone needs to be employed on the last day of the Plan Year + work 1,000 hours in order to be eligible. What happens if it's a combo plan tested together? [1] Still employed but works less than 1,000 hours -- My understanding is that they don't get the Cash Balance Contribution (as per the Plan), but they still get the 7.5% gateway. [2] Worked over 1,000 hours but terminated employment -- They still get the Cash Balance Plan, but I don't believe they get the Profit Sharing Am I correct on these two statements?"

"We have 2 plans (A and B -- they are part of a Controlled Group) that we are trying to test separately. They fail Ratio Percentage Test when tested separately. My question is how should the Average Benefit Test be done? Based on my research, the correct approach is one of these 2 ways: [1] Average Benefit Test is done on an aggregate basis (so, the contributions of all employees in both plans are taken into account). If the ABT is passed this way, then the plans can be tested separately. [2] Average Benefit Test is done by considering all contributions of Company A and $0 and 0% for Company B's participants (since none of the participants of Company B are benefiting under Company A). And, the test is also done for Company B (in which case, all contributions of Company A participants are counted as $0 or 0%). Which way is the correct way to test Average Benefit Test for a Controlled Group where we would like to test each plan separately for compliance testing?"

"Is it required that a profit sharing contribution be deposited before the business tax return is completed? The same question with form 5500; is it required that the deposit be made before the form is filed?"

"A large investment company plan/record keeper initiated a forfeiture in Feb 2024 for a participant who terminated in 2018. This participant never took a distribution from her account and was 20% vested in her profit sharing source. The record keeper initiated an 80% forfeiture of her profit sharing. I know a plan can have a provision to forfeit a zero % vested terminated participant. This participant also has elective deferral and safe harbor match sources. I did limited research within the plan's basic document but didn't see anything right off."

"Owner wants to contribute 50k and borrow 50k from DB. Instead of actually makings the contribution and then taking it out as a participant loan, can he just put the 50k into his account with a memo that there was a contribution and then taken out as a loan?"

"In the 2022 plan year, a plan failed ADP, and 20 HCEs had refunds. Total refunds were around $40,000. One participant's distribution was not processed, and this was brought to our attention in 2024. The distribution form was sent to the record keeper but could not be processed as requested. I don't know where the communication breakdown happened to let someone know. Participant had requested full distribution amount be withheld for federal taxes so they were not expecting a check. The plan has liberal eligibility requirements so testing was done on a separate basis to split excludables from non excludable. I am being told that the correction now is VCP if run on separate testing or if using SCP we have to test All Together. The refunds with All Together are triple the amount that were originally processed. So the participants all would need another distribution and a one-to-one QNEC would need to be made. This seems like a huge penalty for one participant's distribution out of 20 not being processed. Any advice? Does this sound correct?"

"Can a COBRA participant discontinue coverage for a dependent beneficiary mid-year without a qualifying event and continue their coverage and other dependent beneficiaries. If no, is this specified in the COBRA regulations?"