"Dentist Sue owns 100% of LLC(1) and dentist Bill works PT for this LLC. 14 eligible covered employees in Sue's LLC(1) plan. Dentist Sue and Bill purchase a practice about 10 miles away, they form LLC(2) with Sue owning 80% and Bill 19%. I assume they will both see patients at both locations. LLC(2) will co-sponsor Sue's LLC(1) existing 401(k) plan. This will add 8 covered employees for then a total of 22. Dentist Bill also owns 100% of dental practice LLC(3) 15-20 miles away. Sue has no ownership, nor does she work there. LLC(3) has no 401(k) plan. They are asking if they must cover these employees in the plan shared by LLC(1) and (2). The easy answer is 22/30 covered = 73%. Assuming my estimated coverage is correct, LLC(3) need not be covered. I realize this will have to be carefully reviewed every year. But, does anyone see an ASG here? I don't believe there will be any association of patients between LLC(2) and [3] for dentist Bill. The practices are distant enough, patients won't associate one with the other. Does that seem reasonable?"

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"Small Cash Balance Plan fewer than 10 current and former participants with balance, owner died last year, his widow inherited the shares (she is now the 100% owner and the Plan Trustee she also has a pending death benefit as beneficiary) and the business has been running under a prior contract but that contract is running out so all remaining employees were given notice and end of June will be the last payroll.

"The company is staying in business through the end of the year at least to wrap any loose ends and such and for compliance reasons terminating effective December 31 might make the most sense from a compliance and testing standpoint. The plan allows for distributions upon termination of employment so what happens if we pay out all the participants before we go through a formal PBGC termination?

"The plan is well funded all PBGC premiums are up to date and there is a small surplus that will be allocated to participants per the document. I've never done a PBGC termination after all participants are paid out, assuming they can get all terminated employees paid out relatively quickly. Is that going to be a problem with the PBGC?

"I know you are not suppose to payout active employees during the PBGC review and termination process but these will all be terminated vested as of 6/30/24. So it seems we could pay them all out."

"I just wanted to confirm what, if any, non-discrimination testing is necessary for a 403(b) Plan?"