"We have a Plan that terminated in '23. There have been some residuals that came in that we are going to allocate to the participants who were paid out as part of the termination. There was a participant who terminated in '22 and had their distribution processed in early '23, prior to the Plan Termination. Would they get their piece of the residuals or no, since they were paid out prior to the termination?"

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"A nonprofit wants to use a PEO, a for profit company, for a division of its employees. The PEO will be the employer of record for tax purposes and will be the employer who issues payroll and W-2s. The nonprofit will direct the work of the employees, so they could be considered common law employees of the nonprofit in a co-employment arrangement. The PEO has indicated that it can withhold 403(b) contributions from the employees' wages and forward them to the nonprofit's 403(b) plan provider. Although the employees may be eligible to participate as common law employees, I don't see how the employees will have 'compensation' which is defined as W-2 compensation as reported by the nonprofit. The PEO also can't be a participating employer because it is a for profit company. Has anyone run into this before?"

"Must all fees be applied to each adopter in a PEP? One of the adopters in the PEP is the 3(38) for the PEP. They do not want to charger their 3(38) fees for just their plan. Are they allowed to do that? Would it take a supplemental service agreement?"

"I have a Safe Harbor Basic Match plan with only 401(k) and SHM contributions (calculated by payroll). The plan excludes commissions -- and fails compensation ratio test (3.52%). I'm not sure how to handle it from here."

"Terminated participants were issued a 1099R this past January 2023 for a distribution that was never processed either by ER or IA. The funds are still in the Plan and will get distributed this year. How do you correct the 1099R issued. It was a ROLLOVER Distribution not a cashout. Do you simply complete a CORRECTED 1099R for 2023? Do you enter 0.00 for the taxable amount and not enter a code?"

"A participant reaches retirement age. She has never worked 1000 hours to earn any vesting credit, Would she then be 100% vested since she's reached retirement age?"