"Is there any remedy if an employee states that they made a Roth election in 2024 by mistake and it should have been pre-tax? The enrollment system is online, so it is possible they misread the entry. I am aware of this regulation below that states Roth is irrevocable. But what if it was a matter of an online error? Can the plan sponsor direct the recordkeeper to move it to the pre-tax source and then record the 2024 W2 correctly?"

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"Since I started working at this company last year, New Hire executives and above that are 'considered' a highly compensated employee is excluded from participating in the plan, meaning those we hire with a salary over $155K for 2024. Per the IRS definition, determination depends on if the employee was a 5% owner in the current testing period or the 12 months preferring the testing period OR if they earned greater than $155K in 2024. Our plan documents state that HCEs are excluded from the plan. My question is, should they be eligible to participate in the 401k plan as a new hire (assuming they meet the eligibility requirements for the plan)? And then in the following year for 2025, determine their eligibility based on their actual gross compensation for 2024? Just confused if we should be allowing them to enter the plan at all in their first year."

"I believe you can't fund a defined benefit and a SEP in the same year. I set up a DB for a client, in December 2023, have been following up for the date of the contribution, client finally returns my call only yesterday to find out he contributed $66,000 to a SEP in 2023. I'm looking for a cite that addresses a DB and a SEP in the same year. If need be, I'm going to have him transfer the $66,000 from the SEP."

"Assume a non-SH 401K plan where the employer is making discretionary contributions. A non-owner HCE becomes eligible for deferral but was not given the opportunity to defer thus creating a MDO. The corrective QNEC is 10%. Question 1: In general, can a corrective QNEC be used for the 3% TH and for the 5% gateway allocations? Question 2: The non-owner HCE become eligible for deferrals (triggering the MDO), but does not satisfy eligibility for the discretionary contributions. Am I correct that because of the corrective QNEC they must receive TH 3%?"

"Has anyone done a projection or estimate for 2025's inflation-adjusted elective-deferral limit? And for the two (50-, 60-63) age-based catch-up limits?"