"Our plan is highest 36 months salary for benefits calculation. I'm trying to understand how 401(a)(17)-1(b)(3)(iii) -- sections (A) and (B) work in regards to an employee who resigns mid-year. Sub-paragraph (A) appears to state that the HCE's earnings are capped on a prorated basis ($345,000/12 per month), while sub-paragraph (B) appears to state that the proration does not apply to a partial year employee. If an employee has salary above the 401(a)(17) limit, e.g. they have an annual salary of $600,000, which is above the 2024 limit of $345,000, and they depart on 6/30, how do (3)(iii)(A) and (B) apply? ... I'm confused how these work together and which actually applies to an HCE as in my example."

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"Plan in existence for 10+ years. Initially only has 401k+SH. In 2020 added PS subject to 2/20 vesting. Can service prior to 1/1/2020 be excluded for vesting service for PS portion?"

"Had a potential client come to us who found out their 5500s were never filed for 2020 and 2021 because they say they never had reminders or communications from ADP. They immediately filed them when they found out in September 2024, but did not file thru DFVCP. They then received notice CP 283. It is a small plan and those penalties are hefty, so they are looking to see how they can reduce. I checked EFAST and I don't see filings for two other years, and late filings (by a couple of weeks) for two additional years but unsure if they ever received notices regarding that. [1] Is it even possible to refile 2020 and 2021 through DFVCP? [2] The reasons for being late are typical from COVID -- anyone have any success with penalty abatement?"