"We have a client who terminated their DB Plan as of 12/31/22. The owners were not maxed out and capable of contributing more, if they had the Funds. They simply didn't anticipate the income to continue funding the Plan (it was just the husband & wife). Things have now changed, and they are looking to start a new Plan to begin contributing once again. Is there an issue with starting a new Plan for 2023? I know in total they can't fund more than the maximum between the two Plans. Someone else is telling them that they can't start a new Plan, so I wanted to check as I didn't see the issue as long as it's not over-funded for the lifetime between them."

"A 401(k) participant is a non-owner, 75 years old, still employed by the plan sponsor. They take a direct rollover distribution to an IRA in 2024 of their entire $150,000. They are still working, so no RMD is taken. They continue to contribute to the plan during 2024 and at the end of the year they have a $5,000 balance. They terminate on 12/15/2024. Now an RMD is needed by 4/1/2024. Assume the balance on 1/1/2023 was $150,000. I believe the RMD needed at 75 would be $6097, which is more than what is now in the 401(k) account. Is the participant required to take the remaining $5000 in the account, plus take an additional $1097 from the rollover IRA by 4/1/2025?"

"Hi, I'm looking for some information on Invoice reimbursement, generally the balance in the forfeiture can be used to pay invoice and re-allocate to participants or even make employer contribution. In case the Plan does not have invoice and they want to use the funds in the forfeiture to reimburse a previous invoice that they paid I believe they can do it however should this be within 1 year of the payment or can it be anything up to 5-6 years? In reviewing the plan document I'm unable to find any information not sure if the plan document talks about this."

"One of our participants overpaid a 401(k) loan. The company failed to stop withholding loan payments after the loan was repaid. He then took out another loan. Is the only way to correct this mistake to send the check to the participant for the overpayment?"

"Does anyone have Template Letter for a Notice of Adverse Interest to an Employees Company?"

"So there were no 401(k) (or other) contributions during the plan year. ADP test is based on prior year NHCE ADP. Since 2 x 0% = 0, no 401(k) is allowed for HCE in the next year. I just haven't had that happen before, but I believe the options are as follows:

• HCE's over 50 are actually limited to the catchup amount, rather than 0's.
• Prior to end of the plan year switch to current year testing.'

"S corp, State of CT, H&W, Husband is 100% Owner of the business, both H and W are receiving W-2. The client wishes to decrease the benefit formula for 2024 (<1,000 hrs as of now). Is 204(h) Notice required?"

"Two related employers each with their own 401(k) plans, tested together. Employee terminates with one and starts employment at the other. She is asking about moving her money from one plan to the other or possibly taking a distribution. I see no treason to move from one plan to the other because as soon as she does this, I can see her going back to work for the other company. This brings up another question - if she is considered terminated from one sponsor and has less than $7,000 in that sponsor's plan I suppose she would need to take a distribution or be forced out. Or does the $7,000 rule apply to both plans combined in a controlled group?"