"If a voluntary vendor offers a premium discount for other benefits (1% discount for our life coverages). My concern is that this would constitute 'consideration' and therefore would not satisfy that prong of the safe harbor exemption. Any thoughts?"

"This is for a 1-person plan. Owner overdeposited by < $50. PS amt needed to be exact due to certain limits. I'm thinking to just cut a check out of the plan to return it."

"Fiscal plan 5/1/22 to 4/30/23. Limitation year is plan year. 2022 415 limit 245k, 2023 415 limit 265k Froze the plan 5/1/22. What is the frozen 415 limit?"

"IRS Notice 2024-63, Q&A E-3, permits QSLP matches to be contributed at a different frequency than elective deferral matches. Plan makes elective deferral matching contributions on a payroll period basis (that is, compensation and deferrals are measured on a payroll period basis). Plan wants to implement a QSLP match feature, making the QSLP match on an annual basis (that is, compensation and QSLPs are measured on a plan year basis). Does IRS Notice 2024-63 permit this plan design, or will the plan need to be amended to make the elective deferral match on an annual basis to sync up with the QSLP match feature (so that deferrals, QSLPs and compensation are measured on a plan year basis)?"

"Client directs me earlier this year to terminate their cash balance and safe harbor(3% nonelective) 401(K) plan due to a business decline. Appropriate resolutions, notices etc. were done. Subsequently, business improves, and they decide to still have a 401(k) plan and only proceed to terminate the cash balance plan. Small business 401(k) with owner and about 10 employees. No deferrals were made prior to the 401k plan termination. Wondering if anyone has done a 401k pan termination/nullification and what are the issues. Perhaps it is best to just proceed with the termination and start a new 401(k) in 2025; however, the successor plan rules could be an issue. If we restart the terminated plan, I am thinking the HCEs should not defer anything for 2024 and hence not require the safe harbor to satisfy the ADP. It would then be up to the sponsor to decide whether to give say 3% to the employees for the entire year or not since it would not really be a safe harbor plan for 2024. Any thoughts?"

"We sent all our 5558 extensions in one package for 12/31 on 7/30 as we always do. About 60 of them by priority mail on 7/30. Today one of my clients received a letter stating they were denying the extension because it was received late.... I can't find the tracking receipt ANYWHERE.... So was it just this one that got separated or my entire package. I have two things, one my bank statement that shows my charge at the Post Office on 7/30 as well as the screenshot of where all my clients needing one were generated on 7/30.... Has anyone had this happen? and do you think they'll accept what I have noted above to abate any penalty considering we have never filed a late return or extension? ... I've had plenty of instances over my 30 years where they say they haven't received the extension, I've sent it in, and never heard another thing and never included tracking, just sent it to them. Thoughts? Anyone else receiving these notices so far? Would you do anything else other than respond right away with what I mentioned?"

"We have a client ABC with a SH 401(k) plan. I just received word they are acquiring company XYZ that sponsors a SIMPLE IRA. It's an assets purchase which will take place 9/30/2024. I don't know if ABC wants to recognize service worked with XYZ in meeting eligibility. I think that is likely. So, the 402(g) deferral limit would apply as combined for any SIMPLE deferrals and deferrals under the 401(k) plan for 2024. ABC only funds a 3% non-elective SH. I'm guessing XYZ funds the SIMPLE match. If we sweep into the ABC plan XYZ employees who meet ABC eligibility, would the 401(k) funding be as simple as providing the 3% SH for ABC 12-months and former XYZ employees for 3-months? I believe there is some flexibility in testing in the case of acquisitions."

"We are taking over a solo 401(k) whose most recent document is a prototype PPA prepared by Morgan Stanley. We can take advantage of Self-Correction to prepare their 3rd Cycle document, but we need to have our ducks in a row.... Morgan Stanley refuses to produce the PPA BPD and Opinion Letter. I have politely rephrased my request twice, and the broker will not put me in direct contact with the retirement department. The retirement department's message is, 'The TPA or the Trustee have a copy.' Obviously, this is not the case, and I'm baffled that they are so dismissive, and refuse to produce a document they prepared and can readily retrieve. There is nothing special about their BPD or their Opinion Letter, so what gives? Does anyone have suggestions for a more aggressive approach to obtaining the BPD/Opinion Letter in a situation like this?"

"Participant dies in 2023. Already taking RMD's. Spouse, who also works at the same company and is a participant, took his RMD in 2023, and then 'moved' the balance of his account to her account in the plan. She is younger -- late 60's. As I understand it, she can treat this money as her own, and no further RMD's are required until HER RBD. Have I got that right?"