"Scenario: An employee separates and takes a total distribution of his 401(k) account balance. His total distribution consisted of $7,000 in employee Roth contributions and $1,500 in matching contributions and $1,500 in profit-sharing contributions, totaling $10,000. The employee rolled over the $7,000 in employee Roth contributions into a Roth IRA and the remaining $3,000 into a traditional IRA. The employee was 60% vested at the time and forfeited 40% of the unvested employer contributions when he took his distribution. 

"The employee was rehired before incurring a 5 year break in service. The plan allows for the restoration of forfeited employer contributions upon full repayment of the $10,000 distribution. To repay the employer contribution portion the employee plans to roll into the plan the $3,000 from his traditional IRA. Because the IRC and the plan do not allow rollovers from Roth IRA's into a 401(k), he is planning to repay the $7,000 using personal funds. 

"My original thought was to return all the funds to the original account as if they had never left the plan, but in this case, the participant would benefit from the tax on the ROTH account since he is using personal funds to repay it. He also has the ROTH IRA from the distribution. The questions now are: Can we code the $7000 of personal funds as Rollover ROTH fund? Should it be coded as Rollover as Pre-tax? If the plan only allows rollover of Pre-tax or ROTH. Are there any issues or concerns for this transaction?"

"Has anyone heard whether or not payroll companies will issue 1099rs for Roth employer contributions? My guess is they are just not set up for this since the Recordkeepers are doing it."

"Company A and unrelated Company B are participating employers in a multiple employer plan. If a terminated participant who worked for Company A is hired by Company B, prior to a 1-year break in service, must the participant be immediately eligible to participate again?"

"Looking at a CB/DC combo. Can the LTPT employees be excluded from SH/PS with the following provisions as well as testing/gateway/top heavy? Amend the 401k plan so deferral is 1 year & 500 hours -- currently 1000 hours. Safe harbor, profit sharing at 1 year and 1000 hours."

"For 2023, I owned over 10% of the company and my daughter was an HCE in the pension plan. Effective 1/1/2024, my son became 100% owner who is also in the plan. For 2024, is my daughter an HCE as I have no longer an ownership?"

"401k plan with 3% NESH and integrated PS allocation provisions (last day+1000 hours requirement) The only NHCE terminates during the year with less than 500 hours. 3% NESH is allocated. Plan fails ABPT but passes ratio testing under 410b. As the participant got 3% NESH, cannot be excluded from PS, correct? Gateway is 4.5% i.e. would require 1.5% additional PS allocation, or more to pass 401a4. Anything I am missing here or misrepresenting?"

"I know a Safe Harbor Match is a discretionary true-up, if it is done on a payroll-by-payroll basis. I just wanted to confirm that a document can allow a QACA match to be handled the same way?"

"I had 3 employees terminate during 2024 in this dentist practice. As a result the 410(b) average benefits percentage test has failed. The solution is to overide the test and add back into the mix one of the terminated employees. Does it matter which employee I override and provide a PS contriution to in order to pass the test? Of course the obvious choice would be the one who earned the least because that the contribution amount would be smaller."