"I was referred a plan to review for a possible VCO or self-correction due to missed top heavy contributions going back for several years. One out of 3 key employees made a small deferral contribution of 1.6%. There are no employer non-elective or match contributions. The plan document states that all participants (key and non-key) receive top heavy contributions. The TPA has calculated a top heavy contribution amount of 1.6% for all participants including the key employee who had a deferral contribution of 1.6%. Should this key employee receive the additional 1.6% top heavy allocation, or is this key employee's deferral contribution deemed to satisfy the minimum required allocation of 1.6%? If the additional allocation is required, does that then mean that there is one key employee with at least a combined 3% allocation and now all other participants must be increased to 3%? Also, what is your opinion on whether this can be self-corrected pursuant to Notice 2023-43 or a VCP application should be filed?"

"What would happen to someone's funds who passes away, has no spouse nor children and no other designated beneficiary? We assume the plan (not our plan) and state laws of Indiana would say the account goes into the estate. It is $1.5 mil. She does have 2 brothers (one is our 1040 client.) We believe a court will decide the brothers will get the money. And if so, the question then becomes, can they roll to an IRA? Doubtful. If they can when would it have to be distributed? The decedent was not RMD age. We don't know the terms of the decedent's plan. She worked for the VA and so it is a govt plan."

"Discretionary PS with permitted disparity allocation formula using $22,900 as integration level. How do the Max Disparity Rates come into play, e.g., 5.7%, 5.4%, etc.?"

"Participant turned 73 in 2024, deferring first RMD until 4/1/25. 4/1/25 based on 2023 account balance; 12/31/25 based on 12/31/24 account balance. Which year does he get the 1099R for, 2024 or 2025? Age for 4/1/25 distribution would be age in 2024?"