"Plan fails the ADP test. Running the corrections in FTW. Question -- when including the earnings, do you net the fees or just use the earnings?"

"Roth IRA owner is trying to set up a trust to be designated as beneficiary of the Roth that will pay income to his surviving spouse until she dies. He is 80; she is 75. The Roth was created as a conversion from a traditional IRA in 2010 so it was formed more than 5 years ago. Spouse is designated income beneficiary of the trust for the rest of her life, and then his children and grandchildren become the income beneficiary. The corpus of the trust will be distributed when the children/grandchildren attain a certain age. If he dies now, is the spouse required to fully distribute the Roth IRA by the end of the required 10 years period? If the spouse dies before the 10 year period will the children/grandchildren be required to distribute the remaining balance of the Roth IRA within 10 years of the Roth owners death?"

"Have a 401(k) plan that has been co-sponsored by two related entities for many years (company A and company B). Each entity has about 20-30 employees. Effective 1/1/2026, one of the entities will also sponsor an ESOP. No controlled group or affiliated service group issues. They will be slowly funding the ESOP with stock over time but eventually the employees of company A will own 100% of company A. Does this create any any problems with company A continuing to co-sponsor a 401(k) plan along with company B?"

"A plan sponsor wants to change their traditional 401k plan to a safe harbor plan but are concerned about their contribution obligations should they suffer a down year or two in the future, so they are leaning towards a matching SH design. I've heard that a safe harbor 'maybe' notice can only be used when the 3% SH nonelective contribution is being provided, whether the plan is a QACA or not. One of their advisors, however, is insisting that you can use a 'maybe' notice for a SH QACA that provides matching contributions only, but this didn't sound right. As I'm thinking it would be hard for participants to decide how much (or if) to defer if the employer can just rescind their offer for a match at any time during the year, I have to ask -- am I correct to believe that the only type of SH plan (QACA or not) that can issue a 'maybe' notice is one that provides the 3% SHNEC?"

"Let's suppose an employee meets the 500 hours and completes a Election Form (from the plan) that he/she does not wish to contribute,or submits an Election Form to the trustees that he/she elects to make either a 0% or $0 contribution, but the plan contains the standard 1 year eligibility for employer contributions, would that employee NOT be considered a LTPT employee and therefore, the plan does NOT need to follow the LTPT rule? Of course the employer contribution requirement would still apply as well as any required testing. I do not see anywhere this question has been asked or answered."