"Does the 'once in, always in' concept applicable to eligibility for elective deferrals also apply to eligibility for employer contributions, and if so, what is the legal authority requiring such treatment? By way of background, we have a client that is a school (the 'School') that sponsors a 403(b) plan (the 'Plan'). To comply with the universal availability and LTPT rules, the Plan provides that all employees are eligible to participate in the Plan for purposes of elective deferrals upon hire. The Plan also provides for [1] mandatory employee contributions and [2] nonelective employer contributions to all participants who make mandatory employee contributions.... [T]he School would like to impose an annual service requirement on mandatory employee contributions and associated nonelective contributions so that only participants who work 1,000+ hours in a year receive such contributions for that year.... [T]he School employs many individuals on a temporary/seasonal basis (coaches, summer camp counselors, substitute teachers, tutors, etc.), has many former full-time employees return to work with the School in temporary/seasonal positions, and has high rates of employee turnover. It would be extremely administratively burdensome for the School to make employer contributions every year to all employees who once worked 1,000+ hours in a plan year and who now work less than 1,000 hours/year. Because we cannot use an allocation condition to impose an annual service requirement on mandatory employee contributions, we're trying to find a way to impose an annual service requirement on these employer contributions through eligibility. However, we've received pushback from the School's consultant and recordkeeper that the 'once in, always in' concept applicable to elective deferrals also applies to employer contributions. While it's clear that the 'once in, always in' requirement of the universal availability and LTPT rules do not apply to employer contributions, we cannot find conclusive guidance as to whether or not Code section 410(a) imposes a 'once in, always in' requirement on employer contributions."

"Client firm is a Real Estate Broker. The Plan is a 401(k) Plan which covers ONLY the owner and wife, who are both active in the business and the only employees of the firm. Outside of the Plan they are involved in various real estate speculations, and do rather well with these investments; which is why they want to expand their use of real estate under the 401(k) plan. Currently they do have two real estate investment which are solely under the Plan (no involvement of business, or commissions to the firm, with annual independent valuation). I note that they do have other investments under the trust so it is diversified. Anyway, they now want to use the trust's real estate assets in a 'cash out refinance' of the 2 real estate investments, to obtain funds which will be used to improve the properties, and possibly buy additional properties. To clarify, it seems that what they are intending to do is get mortgages against the 2 properties (currently owned 100% by trust fund), and use those funds to improve the 2 properties owned, and perhaps to purchase more real estate under the trust. It is expected that this will not involve any monies outside of the trust, and that all proceeds will remain in the trust. However, I suspect this is a prohibited transaction since they are using the two properties owned as collateral for the mortgage loans they take out against those two properties. I also suspect that this will be a PT for other reasons, but am not sure how or why. I greatly appreciate any and all comments and suggestions."

"So long as a plan allows, can anyone convert all or a portion of their 401k accounts (including all pre-tax sources -- deferral, rollover, employer) at anytime? Some suggest that only those eligible for in-service distributions (typically age 59.5) can covert to Roth. Others are suggesting that anyone can convert but only taxes can be withheld for those that are eligible for in-service. This is obviously only an issue for active employees, not terminated employees."

"Looking at a possible take over for DB/DC combo DB has a safe harbor integrated formula but does not pass ratio test on its own (not sure about ABPT as I am not yet provided the testing. Top heavy provided under DB plan. DC has deferral and 3% NESH and passes 410(b) ratio test. No PS allocation. If both plans need to be aggregated for 410b testing, do they need to be tested for 401(a)(4)?"

"For plans that are terminating should the Plan sponsor complete the good faith amendment (SECURE 2.0 and CARES)? what if they have not done the amendment?"

"Sponsor has an existing 401k plan. Wants to add a PS plan -- separate plan. Can the new plan exclude service for vesting purposes? Never had a plan terminated in the past 5 years."

"Employer has been a participated in a MEP for several years. Not an auto enrollment plan. As of 1/1/2025 the plan will move to a PEP. Does the move to a PEP trigger the Auto Enrollment requirement for 2025? Or is the plan grandfathered since it was in place prior to the Auto Enrollment Requirement?"

"IRS Notice 2024-80

• 401(k) deferral limit increases to $23,500
• 415 limit for DC plans increases to $70,000
• HCE threshold increases to $160,000; Key employee at $230,000
• 401(a)(17) limit increases to $350,000'