"I have a client who established a pre-enactment MEP 401k plan. During 2024, an employer who is a member of a controlled group which includes the sponsoring employer adopted the MEP 401k plan. Would this employer be considered as adopting a grandfathered plan since it would not be considered a 'new employer' if a member of the controlled group?"

"Hoping someone can provide me a quick sanity check. Plan uses regular NRA definition of later of age 65 or fifth anniversary of plan participation. Participant becomes eligible for the plan on 1/1/23, when they are age 63. They quit on 1/1/24, when they are 64, and are 20% vested. Unvested balances are forfeited after five breaks in service. They do not take a distribution. On 1/1/28, when they are age 68 and have four breaks in service, they reach their fifth anniversary of plan participation. Are they fully vested? In other words, does reaching NRA after termination restore the pending forfeitures?"

"Does EBSA or IRS do something we as employee-benefit practitioners need (that would be delayed by a U.S. government shutdown)? Or does our work not depend on the executive agencies? (We likely care as citizens, many might care about friends and neighbors who could be without paychecks for a while, and some might care as investors.) In the law of U.S. government shutdowns, some executive agency functions are treated as essential, allowing a government employee to keep working; but nonessential functions don't get that tolerance. For example, about 70% of Treasury employees are not permitted to work. In some agencies, it's around 95% of employees. Further, many executives play 'out of position', taking on emergency functions and unusual activities. A shutdown precludes work on writing rules, regulations, and other guidance; issuing ERISA advisory opinions or IRS letter rulings and other written determinations; almost all legal advice (except as needed for EBSA or IRS to preserve the U.S. government's rights and other property); and customer service. But have the guidance-writing functions become so sparse that we no longer depend on them?"

"401K Plan permits In-Service withdrawals beginning age 59-1/2; partials of at least $1000. Participant is past Normal Retirement Age, actively employed, and has a Participant Loan with a substantial balance; let's say it is $40,000. Business has been flat this year and making the loan payments is increasingly more difficult. Last payment was end of November 2024. Next due is end of December (monthly payroll). There is a strong chance no wages will be paid for December. Participant would like the Loan Balance 'distributed' this year, as the tax implications would be minimal due to extremely low income, per the CPA. There is hope that things will improve next year but not certain how quickly it may turn around or to what extent if any it will turn around. If the December 2024 loan payment is not satisfied, a default would occur and the correction period would run to 3/31/2025 per Loan Program. Can the Participant request in essence a (permitted) partial withdrawal equal to the Loan Balance, or in other words request a Loan Offset and no additional cash distribution at this time (i.e. in service)? And if yes, then Form 1099-R would be Code 7 but not Code M (since not termination of service or plan, not QPLO), zero taxes withheld?"

"For reporting delinquent contributions, do they get included in successive years only until the late contributions have been deposited (recovery date), or do they keep getting reported until a VFCP is submitted?"

"Participant elected 10% pre-tax for all of 23'. Issue with payroll caused this person to defer 10% Roth instead. Correcting this sounds messy (new w-2, moving buckets of money, etc.) My idea is to tell the sponsor to shore them up via payroll with the extra taxes they had to pay. They then get tax free growth for essentially 'free'. What else am I missing besides the fact that they couldn't defer paying taxes until later in life?"