"As of January 6, 2025, the plan sponsor's forfeiture account has a balance of $35,000, which includes $25,000 from 2023 and $10,000 from 2024. [1] Is there a deadline for the use of forfeitures? [2] Is the deadline the same for both the 2023 and 2024 balances, or does each year have a separate deadline? [3] If there is a deadline as per IRS regulations, please clarify and provide the relevant regulations. [4] If the forfeitures from 2023 are not used during the 2024 plan year and remain unused at the end of 2025, would this violate any IRS regulations or compliance requirements?"

"I'm a member of a labor union. As part of my benefits package (which is not my 'wages' per se, but it's a dollar amount that is voted on at contract time by the membership), a contribution is made to an HCRA account. While you're an active member, you're given access to a small percentage (20%) of your yearly contribution to purchase non-prescription drugs and certain OTC medical-related items. The rest of the contribution goes into the account, and is essentially innaccessible until retirement, when you're supposedly allowed to spend it on any medical costs, including co-pays, insurance premiums, and prescriptions.

"The contribution for most members is between $5k and $6k a year (which I'm hearing is a lot for an HCRA, especially when there is already a robust health insurance plan), leaving many members with $130k to $180k in their accounts as they get nearer to retirement. As part of the terms of the plan, if the member dies before retirement, their spouse is only entitled to a small portion of that money, along with 18 months of assistance to help cover insurance, and the plan itself absorbs the balance of the money. Retired members that pass away can leave the remainder of the money to their spouse, however once the spouse passes away the funds get absorbed back to the plan, and from what I've heard from new retirees it's actually kind of hard to spend the money, with many claims being denied.

"Does this sound like an illegal plan? Or maybe just unethical? It seems like the cards are stacked entirely in the plan's favor and it's a large risk with potentially little reward. How would the membership get out of this without forfeiting the money? Or am I being ridiculous and it's a good deal. This plan was never voted in, but was forced on the membership through administrators."

"For a US tax return or tax payment due today, one may take an extra day, to January 10. That includes 'any federal income, payroll[,] or excise tax deposit due on Jan. 9, 2025, including those required to be made through the Treasury Department's Electronic Federal Tax Payment System (EFTPS).' "

"RMD's used to be simple..... I have a participant who i just found out passed away 12/2023. He was over 80 years old. He has a surviving spouse who is the beneficiary. He never took an RMD as he was still employed and not an owner. Client is saying that they do not have to take an RMD. Since he wasn't required to take an RMD prior to death, can the 10-year payout be used? I'm thinking she should have taken the 2023 and 2024 RMD. I appreciate any help. Thanks!"

"Hello. Participant signed up to defer (403(b) Plan) in June 2022. Her choice was never implemented. This was discovered during the 2023 plan audit (large plan). Participant never noticed. She is going to start deferring this month. Client never noticed either. I am working on the correction now, but the auditor says the amount of her missed deferrals has to go on Schedule H line 4a. I'm not convinced as the they were never withheld by the employer for contribution to the plan so not technically late. Thoughts? TYIA!"

"Are the new start-up plan tax credits only available to employers with less than 50 employees? I have a restaurant group that wants to start a new plan. With the new auto-enrollment rules, I would envision them having more than 50 initially. They have a few hundred with W-2s each year, but only about 40 that are full-time and interested in participating. They will have to be safe-harbor to pass testing."