"I'm trying to create a model to project future balances for our participants but am running into a couple of roadblocks. In past years, we have had 1 ESOP loan. I reengineered the allocation calculation from our TPA and it seems that once we have an ESOP only allocation of contributions (after accounting for 415 limits and backing out 401k contributions), the loan is allocated to each participant to reduce the actual contribution amount paid. Fast forward to 2024 and we will now have 2 loans due to a re-leverage. When I use the same methodology to allocate the loans to participants, two of our participants have a negative contribution amount. I'm not getting any clear answers from our TPA on how to handle this. Similar to how 415 excess amounts are re-allocated to participants, would these negatives be re-allocated until no one is negative? Furthermore, to make up for the fact that the bulk of our contributions are going toward loan payments, we will be doing an S-Corp Distribution in 2024. S-Corp Distributions earned on allocated stock are allocated in proportion to participants based on beginning share balances less distributions and S-Corp Distributions earned on shares held in suspense are allocated based on Eligible Compensation. What I'm unclear about is the timing. Should contributions be allocated first, then S-Corp distributions, or vice versa? I was going to model it out using both approaches, but the negatives caused by the loan impacted that original plan."

"Employer going out of business that has two plans: 403B and a pension plan (assume 100 participants or more). The 403B plan year is the calendar year. The pension plan year ends on June 30. Is the employer required to have an audit performed for each plan for the following time periods? 403B for CY2024 (plan terminated 7.31) (I believe YES) and pension plan for plan year ending June 30,2025 (I assume also YES)."

"I was always told/taught that receivable profit sharing contributions are due the earlier of: [1] September 15 [2] The date you file your tax return In researching something, I just found this on the IRS website: For example, if the due date of the employer's calendar-year 2022 Form 1040 or Form 1120 is April 18, 2023, with an extended due date of October 16, 2023 (after the automatic six-month extension), the employer has until October 16, 2023, to make a 2022 profit-sharing contribution and deduct it on their 2022 return. Have I always been taught the wrong thing? Or am I confusing two different things? Now I'm confused, but is this an instance that if the company is a C-Corp you do have until October 15 to fund the contribution?"

"Is there specific guidance anywhere that says Employers should not stop payroll matches when the employee reaches the max compensation during the year? For example, plan matches dollar for dollar. I don't see why the Employer should stop (testing reasons notwithstanding). Or, maybe someone started deferring in March with a 50% of deferrals no more than 6% of comp (for a cap of $10,350 on $345,000 in comp). They hit $345k in September, but hasn't hit that match cap yet. We know they are supposed to keep going until they hit a cap, but is there anywhere that says it outright?"

"A 100% ESOP-owned company has received a letter of intent to be acquired by a private equity company. The transaction is expected to be a stock sale about 40% above the 12/31/2023 FMV. Should the expected sale price be disclosed on the diversification notice? At least 2 of the diversification eligible participants have or will have knowledge of the sale discussion at the time the notices are scheduled to be distributed, but the rest of the eligible group may not know all the details. Please assume the diversification is timely based upon the availability of the final FMV, I'm only concerned about the fiduciary responsibility of providing the information necessary to make an appropriate election."

"It seems to me that if a business owner has no employees and has less than $100,000 of compensation they would be eligible for the employer contribution credit. The admin expense credit would not be available because the cap is based on the number of NHCEs and in this example there are zero. But the only restriction on the employer contribution credit is the 100k of comp limit. Thoughts?"

"Plan uses the top-paid group election because they have very high earners. A small group of NHCE <1% owners do not want to participate in the plan or receive employer contributions. Assuming we can pass coverage, can they designate certain employee owners to be in this 'Excluded Division'? How do you define the division (or do you need to) when the only real differentiator is that they are partners who can not participate while in that division?"

"S corporation, two owners -- father and son, both are 50% shareholders, no other employees. Is 5500-EZ or 5500-SF required? In prior years EZ was filed but I do not think it is correct and SF is required? Anything else that I might be missing?"

"I've broached the topic of an ASG with a client, and of course they want more information before deciding to engage an ERISA attorney. DWC has a good article on their website about ASG; is there anything else that you've found that is relatively understandable that can be sent to accountants (and/or plan sponsors)?"