"We are in the process of terminating our 401k plan. We have several participants with really small balances (many are under $1.00). Is there a de minimis amount ($1.00, $5.00, etc.) under which it is permissible to move those really small balances into forfeitures instead of forcing the participant to take action? Or are we required to send all of these small balances to IRAs? I thought that there was a rule where if the cost or burden to the plan sponsor exceeded the account balance, then the government allowed such a forfeiture."

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"Employer erroneously withheld (and made) Roth deferral elections for a few years. Participant did not realize but question is what is the correction? No Code (402(g), 415, etc.) violation but if the amounts are distributed, would the entire balance be taxable or just the earnings? Assume not subject to 10% excise tax on early withdrawals as it would be a corrective distribution. Better approach would seem to be to have the participant make an election going forward but interested in any other thoughts from those who have seen this before."

"The company made a compensation contribution as well as paid a dividend on preferred shares. (The ESOP holds all of the preferred stock.) These two payments were then returned to the company as payment for the ESOP loan principle. These two payments paid off the remaining ESOP loan balance. The issue has to do with the fact that there were not enough shares available to be released for the 'make whole' principle. There were approximately 54,000 shares available to be released but 71,000 were needed for the dividend to abide by the make whole rule. How would this payment be accounted for? How much of the payment would be tax deductible?"

"My client is using Relius (I'm not) and they are telling me they can't override the Schedule SB calculation of box 10b. Any Relius users out there? Can you tell me if this is realistic?"

"I've got the EOB in front of me (both hardcopy AND online) and this still makes no sense. I took over a plan that says eligibility is no age, 6 months with 500 hours (reverts to YOS if not satisfied), entry date is January 1 following satisfaction. What? EOB says that there is a way to design the plan so that this is OK, and it discusses using more-lenient-than-statutory requirements, which is what I've got. But the example shows someone hired in the first half of the year with 6 month eligibility -- that's the easy situation! So if I'm hired in June 2024, I'm eligible 1/1/25, and if I'm hired in July 2024, I'm eligible 1/1/26. People hired in the second half of the year are getting the shaft, right? What am I missing here? Why does this look so shady? And, more importantly, is this plan OK as is?"

"PBGC termination with 20 participants. 10 chose rollover into the existing 401k plan and 10 wanted lump sum. Advisor was provided all necessary information to proceed with the distributions and the deadlines. Despite my constant reminders and follow ups: Not only the advisor did not do the distributions timely, the advisor, in order to avoid any 1099 responsibility, sent all the monies to the 401k plan without even discussing with me. Once the monies were transferred to the 401k plan and allocated to the participants accounts as rollover, in return, they were allowed to withdraw as lump sum from the 401k plan. Some of the participants who elected lump sum, decided to leave the monies in the 401k plan. How can this be corrected?"