"We have a 403(b) Plan that is a multiple employer plan (MEP). Under SECURE 2.0, new 403(b) Plans (established after 12/29/2022) are required to include auto-enrollment/auto-escalation. Would this apply to new employers who join the MEP? The MEP itself is not a new plan, but would a new employer who joins the MEP be considered to have started a new plan by joining the MEP? Are there any exceptions or ways out of this new requirement?

'While different employers in the MEP do have some flexibility regarding the MEP, its much easier if the MEP is mostly uniform across all participating employers (so having auto-enrollment/escalation for some and not others makes it more complex to administer). While we're at it, is there any way around the Long-Term Part-Term rules? I don't think so, but figured I'd ask while I'm here.

'According to Notice 2024-02 (https://www.irs.gov/pub/irs-drop/n-24-02.pdf), it looks like an employer joining a MEP after 12/29/2022 is treated as starting a new plan. There is a possible exemption if the employer joining the MEP already had a pre-12/29/2022 plan and is treated as merging into the MEP, the employer can treat the MEP as a continuation of the older plan, rather than a new plan. I think this answers my question -- whether you agree or disagree I appreciate your comments!"

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"Has anyone done a plan termination lately with TIAA where assets are in individual annuities? We haven't for quite some time, and there were, to say the least, difficulties. When you are terminating a plan, the participant has to be given the option to get a distribution, or roll over the funds. But TIAA 'requires' (or did require) the participants themselves to call TIAA if they wanted to surrender. And participants frequently won't bother to do this in a timely fashion. Do you know how they handle this now? And do you by any chance have the contact information for a person at TIAA who actually KNOWS something and is willing to discuss how a plan termination can be handled in this situation so that a final 5500 can be filed?"

"The employer wants to know if they can get a refund. Large plan 5500.... [In] a situation where a form has been filed late, but not under DFVCP, I've seen a good deal of discussion where the recommendation is to file an amended form ASAP, checking the box that it is being filed under DFVCP, and filing ASAP under DFVCP. Folks appear to have had success with this, even if a CP283 has been sent.... But now the question is whether that option is still available if the employer already paid the CP283 penalty? And if so, how does the employer go about requesting a refund? Sending what we used to call the 'tear stained ' letter?"

"Here is the situation:

• LLC sponsors 401(k) plan.
• S Corp owns 100% of LLC.
• S Corp is selling 100% of LLC's assets -- including the name of the LLC -- to three current individuals/employees as of 12/31/24. The three employees will become equal owners/members of the LLC following the asset sale.
• The three individuals will assume sponsorship of the plan and continue to operate the LLC and the plan under the same names.

"Have I thought this through correctly? [1] Documents need to be drafted, stating that the three individuals will operate the LLC under the same name and will assume sponsorship of the plan. [2] This transaction will constitute a continuation of the plan (i.e., no distributable event, crediting of service will be required, etc. as if this was a corporate stock sale). [3] The plan does not need to be restated and the plan will file a 5500 as a continuing plan. [4] No formal transfer agreement is needed. .. . Just documentation stating that the new buyers/owners of LLC will accept all assets/liabilities associated with the plan. [5] Am I missing something? Do I need to obtain additional information and/or take any other action in connection with the transaction?"

"We have an S-Corp who is telling me that the owner is no longer going to be receiving a W2 and instead receiving K-1 income. Is there a way to utilize the K-1 income for the salary? Just trying to help the client. I've read that K-1 can only be used if it's a partnership, but I wasn't sure if that was accurate or not."

"I have a plan that was not designed in a manner that works well for the business. Eligibility is immediate and 95% of employees are seasonal/part-time and in college. Regarding automatic enrollment in 2025, can the sponsor use the employee's initial opt-out from when they were hired as an election to defer 0%? Or does there need to be a formal (in writing) opt-out following the EACA notice that was distributed?"