"A lot of 403(b) plans are governmental. Previously, they could have a discretionary match with almost no restrictions on who, when, how much, etc., since there isn't any nondiscrimination testing. Now that it is more restrictive, for a governmental plan, is there anything wrong with using the nonelective contribution, with everyone in their own group, and 'coincidentally' the only people who get a nonelective are those who deferred? Smells funny, but would be easy to do...."

"About 5 years ago, a participant was automatically cashed out, and a check for $40 written to him. that check has never been cashed and the plan is moving recordkeepers. We are assuming at the time, that distribution fees were already applied to his account, but we would like to just forfeit this remaining uncashed balance as in applying a new round of fees. Curious of any thoughts on this?"

"We have an overfunded DB the client needs to terminate. There is plenty of room to raise projected and accrued. There are 4-5 vested terms that terminated more than 5 years ago. Question, although possible to recalculate on a new benefit (obviously to reduce the overfunding), since they terminated over 5 years ago and have NOT been paid out anything, is it necessary to recalculate these benefits?"

"New guidance concerning QNEC corrections can be found in SECURE 2.0 which added Code Section 414(cc) and also in IRS issued Notice 2024-2. These new rules for self correction when there is an implementation error permit a $0 QNEC to both active and terminated participants for missed deferrals if the correction is made within the 'correction period' as long as the deadline to correct is after 12/31/23. Assuming the employee does not notify the sponsor earlier, if the error occurs on 12/1/24 the plan has until 10/15/25 to correct and start deferrals and pay no QNEC but fund any missed match, and give notice. Under 414(cc) this applies to terminated employees. What if the error is not discovered until after 10/15/25? I believe the QNEC for active employees is 25% now under SECURE 2.0 but does this apply to terminated employees since we are beyond the 414(cc) deadline or do we use the 50% QNEC under the general rule of EPCRS?"

"401(k) is a SHM plan. Employer did not make enough of a matching contribution to cover the total contribution and the corporate tax return has been filed. Can the owner waive a portion of the safe harbor he would have received, such that he does not have to pay in the additional sum?"