"I'm so sorry for the long delay in getting software updated today (Thurs. 5/30/2024). The message boards were offline for most of the day. I believe everything is up and running correctly now. Thanks for your patience! Dave Baker Troublemaker"

"Everything is on a calendar basis. Joe and Mary are 50/50 partners of a law firm -- no other employees. They both get K-1s. Let's call this LawLLP. All they have is a SEP. July 1, 2024 they will go their own separate ways. Joe sets up a PLLC (filing as a sole-prop). He will bring in some of the clients from LawLLP. Is this an ASG issue? Joe wants to set up a DB plan for 2024. Can he:

1. Use prior service and income (limited to 5 past years) to start the DB effective 7/1/2024 (ending 12/31/2024 for a short plan year) so that he can have an AB as of 7/1/2024 for pre-funding?
2. Assuming that he can, plan year must start on 7/1/2024 to avoid Mary to be involved in the DB, correct?
3. What needs to be pro-rated, if anything? His net c will be 200k and he wants to put away as much as possible. Of course it will depend on what can be used from prior firm.

What else am I not asking or thinking about?"

"I had a consult with an actuary/administrator about starting a cash balance plan this year. However, I maxed out my solo 401k contributions 69,000 this year by myself with fidelity. He states that he can create a new solo 401k plan (?) and reclassify the excess as after-tax contributions for this year so I can start my cash balance plan this year. Does this make sense?"

"Now that the Secure Act allows for a DB Plan to provide for in-service distributions starting at 59.5, is a DB Plan now allowed to adopt an NRA of 60? Or is 62 still the lowest safe harbor NRA for a DB Plan?"

"Fiscal year 6/30 organization wants to contribute funds in June, 2024 to a 457(f) plan being adopted on June 1, 2024. I am told the employer has been 'setting aside' funds to contribute on behalf of the executive for past services for the organization. This sounds to me like a 409A, if not a 457(f) violation, as I don't believe contributions can be made for services performed before the executive has become a participant. Nor do I believe it permissible to make the plan retroactive to a date before its adoption such that the executive could become a participant as of an earlier date, July 1, 2023, for example. Am I right? If so, can a contribution be characterized as something other than for past services to enable the contribution in the current fiscal year even though the plan didn't exist for the first 11 months of the fiscal year?"

"I have this plan with 4 terminated employees who each have a small residual balance due to interest/dividends. 1¢, $20.03, $8.92, $208.82. For the $208, we will send her the money and issue a 1099-R. For the rest, send them the money -- is a 1099 needed? I'd like to just expense it out. What does everyone do in this case?"

"Question: Is the employee's termination date the last of active employment or the first day of non-employment? For example: I worked on 1/31/2023 is that my termination date? or is 2/1/23 termination date?"

"For a Cash Balance Plan, which doesn't have the last day requirement, I know it's irrelevant. If someone went out on leave (whether it's maternity or not) and had already worked over 1,000 hours they are eligible for a contribution. How about a Profit Sharing Plan? We have a plan that has multiple people on Maternity Leave and someone else on Medical Leave. They are all getting paid disability, if it matters. Are they eligible for a contribution for the year?"