"I'm doing compliance Testing for xyz 401k plan and under safe harbor non elective, 3% SHNE is selected along with the comment mentioned under other plan that xyz ESOP plan name. However, I'm confused whether I have to allocate 3 percent SHNE for employees in my xyz 401k plan or else it denotes ESOP plan. Is there any IRS provision or regulations which is giving clear definition for this section in adoption agreement? What is the next to whether to allocate SHNE in 401k plan or ESOP plan? ESOP in doing by another. Here by taking assumption I'm completing the plan that the plan is not top heavy and there is non of them exceeding the annual addition."

"Under the EACA the participant has 90 days to request their funds if they do not want to enroll. The account adjusted for income is paid to the participant. Question: The Recordkeeper wants to invest the Auto Enrolled deferrals into an 'interim' fund until the end of the 90 days vs. the QDIA. Then if the participant did not request payment, the account is moved to the QDIA. I can not find that the interim fund is a requirement. Everything indicates the AE is funded to the QDIA and if the participant takes his payment during the 90 days, they get the value of the deferral account (gain or loss). Am I correct. Is this just the process for the recordkeeper vs regulation?"