"Had a plan where they could not produce census data for 2023 due to a change in payroll systems. Therefore we were not able to do the SSA. I see the penalties are now 'bankrupt an organization' stupid. Anyone have a real world experience? I can see that you can ask for a waiver if the lateness is for reasonable cause. It's a larger plan so this is a good sized potential penalty we are talking about. Can you claim the waiver in advance or do you have to wait for the penalty to be assessed and then ask for a waiver? Curious if anyone has a real world experience. I assume since there is no late filer program they would be pretty accommodating. Also wondering if they even send out a penalty when you file late. Hard to imagine getting a $30,000 fine for filing this late. I could see if it was never filed, etc."

"It's my understanding that profit sharing is limited to 25% of your plan compensation. Is this limit for specifically profit sharing, or all employer contributions? Specifically, does safe harbor count towards that limit? I have a client who has a solo K plan and made about $100,000 and maxed out deferral. Her document is a 4% Safe Harbor NE. Can she contribute 4% as a safe harbor contribution and then 25% as profit sharing, or can she only do 21% profit sharing to hit a limit of 25% comp as employer contributions?"

"We handle 2 plans for a dentist who is a PC; sold the assets of the practice, employees received W-2 for period 1/1 to 2/28 2024. I am suggesting $0 profit sharing, he knows he has to do a 3% safe harbor on the employees' W-2 1/1-2/28/2024 Question is, what comp do we use to calculate the cash balance plan (assuming the liabilities are greater the the assets)? Obviously, if assets greater, no contribution. I don't see how plan(s) can pass 401(a)(4) or 401(a)(26), possibly w/o a contribution. The owner will continue the plan as a PC, but I believe his payout will be 1099 which will be funneled to PC and become PC income for plan purpose."