"Company A has a traditional 401(k) plan with a safe harbor provision, no automatic enrollment, plan has been around several years, well before SECURE 2.0. Company B -- does not have a plan. Company B owners -- purchase Company A as an equity purchase as of 7/1/2023. Company B intends to become a participating employer in Company A's plan as of 1/1/2025. It is a control group. Assume the transition period runs until 12/31/2024. The two companies are similar in size for number of employees, about 30 each. Is the resulting plan exempt from the automatic enrollment rule of SECURE 2.0? Or would it need to add an automatic enrollment provision that satisfies SECURE 2.0 as of 1/1/2025? what say all you lovely people?"

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"Plan sponsor is an LLC taxed as a partnership. They sponsor a safe harbor 401(k) with elective, safe harbor non-elective and profit sharing. They are on extension. Plan is on a platform with Equitable. Contributions for the employee are correct. As far as the partners, they always mess up the allocation, Equitable returned some money as they claimed there ws too much contributed to the elective portion; this took 3 months to straighten out. The client continually makes the contribution to the wrong 'bucket'and Equitable returned one of their deposits. Maybe a dumb question, but for a partnership, how does one determine the split among deferral, profit sharing and safe harbor? We had advised them that any contribution made during the year go to profit sharing, and then redistributed to their different 'buckets.' How is it determined how much goes into which in order that the contriubtions for the employees is done correctly."

"The 2024 Instructions for Form 1099-R just came out and page 16 provided the following guidance regarding the Box 7 distribution code for the various new SECURE 1.0 and SECURE 2.0 distribution types (QBAD; EPED; TIID and DAV): '... use Code 1 even if the distribution is made for ... a qualified birth or adoption distribution, an emergency personal expense distribution, a terminally ill individual distribution, or an eligible distribution to a domestic abuse victim under section 72(t)(2)(B), (D), (E), (F), (G), (H), (I), (K), or (L).' However, I didn't see any guidance on which code should be used for qualified disaster recovery distributions under Section 331 of SECURE 2.0 / IRC 72(t)(11). Did I miss it? Should we use Code 1 or 2 for qualified disaster recovery distributions?"

"If a new cash balance pension plan is being implemented now effective January 1, 2023, can the plan exclude employees who terminated during 2023 even though they would have satisfied the eligibility requirements as of 1/1/23? Can there be an exclusion for any employee who wasn't employed on 12/1/23 for example? Or would that be considered an impermissible service exclusion? Alternatively, we can provide an accrual for 2023 with a 3 year cliff vesting schedule and exclude all vesting service prior to 1/1/23. There is an existing 401(k) profit sharing plan that will continue. Per EOB, if there is a second plan of the employer that doesn't terminate within 5 years before or after the effective date of the new plan, that is not considered a predecessor plan for purposes of excluding vesting service prior to plan establishment. Any other options?"

"Governmental entity mistakenly filing Form 5500-SFs for years. Should we simply stop filing (and risk inquiry from DOL/IRS) or notify DOL/IRS that they will stop filing 5500s because they are not subject to ERISA?"

"The sponsors in the affected areas can get relief on filing their taxes and making deposits, but I don't see where this gives an extension on the 5500 filing deadline? Am I missing something?"