"Terminating DB plan has excess assets to be transferred to an QRP (which is the sponsor's existing 401k PSP). In the first year of the transfer, can the sponsor use part (greater than 1/7) of the excess to fund the previous years accrued profit sharing contribution? For example, transfer happens in 2025, want to use excess assets to fund 2024 profit sharing contribution in 2025."

"Plan is terminating; the re-allocation of the forfeiture balance occurred after 180 days of the participants initial distribution, is it mandatory the participants should receive a second communication along with the special tax notice since the participants are receiving the additional money post 180 days of their initial distribution? Is there any resource of information can be shared in reference to the special tax notice?"

"Are there any regulations limiting the amount of compensation used in a fixed match formula? We have a client wanting to do a match of 100% on the first 6% of deferrals, then 50% on the next 2% of deferrals. Thus allowing for a 7% match on 8% of compensation."

"Does anyone have information on the working owner questions on Part II of the Schedule MEP? I have read the instructions to the schedule, as well as the referenced CFR. Assuming a small 'closed' MEP of business entities, where each entity is a participating employer on the legal plan documents.

• Entity A -- S-Corp has two owners who are part of the plan, along with a number of employees.
• Entity B -- LLC, no S-corp election, one member owner, no other employees, self employment earnings, also participates in the plan
• Entity C -- sole proprietor, no other employees, self employment earnings, also participates in the plan.
• Entity D -- LLC, no S-corp election, one member owner, several other employees that are part of the plan, owner has self employment earnings and also participates in the plan

"I would think the answer would be yes for all. The definition of working owner doesn't preclude the business from having other employees, so even Entity A has a 'working owner' two in fact. Am I understanding this correctly? If there is a MEP and the owners are NOT part of the plan (do not have earned income, no contributions etc) then I would guess the answer to the question on the schedule would be No. I appreciate any light someone can shed."

"During divorce participant was supposed to roll over a portion of retirement into the ex-spouse's designated account. The participant filled out a QDRO from the third-party administrator for a 457 (b) non-government account. The participant did not let the ex-spouse or the court know that this was a non-qualified account. The court processed the QDRO only to later find out that the funds could not be rolled over into the ex-spouse's designated account. The court then ordered another QDRO to return the money to the participant's account. The employer then refused to return the funds to the participant because the ex-spouse was not a high-earning employee of the company or any employee of the company. The third party should not have approved the original QDRO to begin with because the participant was not transparent with the order of the court stating the funds need to be rolled over into a designated account. Should the court rescind the original order for the funds to be placed back into the participant's account? To complicate things, the participant terminated employment shortly after the funds were placed in a parallel account, not the ex-spouse's designated account, her IRA."