"A recent reply to an old thread got me curious, what do you use AI/LLM ('AI') for in your practice, if any? Are you allowed to use it all? Do you use it internally or externally (with clients)? I have had this discussion in smaller settings, and I recognize that use of AI varies greatly. I'll start us off with some easy examples from my practice: 

• We do not use AI for anything with PII data, even if the workspace is locked down (not used to inform the AI outside of our workspace) 
• We do not use it for legal or compliance questions. I have seen many benefits adjacent professionals do this and the answers can be frightening. 'ChatGPT said we are not an Affiliated Service Group' is a scary sentence....
• We use it to review and revise communications. Don't like how your email sounds? feed it to an AI to make it easier to read, understand, etc. 
• We use it as a tool to help with formulas and macros for excel. 
• I am playing with it as an internal Q&A tool. By creating your own GPT, you can have the AI prompt you with questions (instead of asking it questions) and limit the source material it looks at to the specific documents you provide.'

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"If a plan participant in a company's 401(k) plan transfers a portion of his account balance into an IRA and gets a divorce: [1] Is the IRA money (which originally emanated from the 401(k) Plan), subject to the QDRO rules or can the split between husband and ex-wife just be subject to a separate agreement? [2] If the plan participant established an individual IRA (not containing any plan monies), how is this handled in a divorce? Does this money need to follow QDRO splitting rules?

"This participant is currently receiving $15,000/mo. (no survivor benefit) from a company sponsored defined benefit plan. To determine the amount the ex-wife gets: [1] Is the monthly amount she would receive be $15,000 x the marital fraction? What actuarial adjustments need to be made, if any? [2] Could the wife choose whether or not to take an annuity or a lump sum? If a lump sum is taken, what assumptions would be used to determine the lump sum? If the annuity option is chosen, again, what assumptions would need to be used? If anyone has a good internet site detailing how this all works, with examples, please pass it along."

"Checking a proposal for a DC/CB combo DC is 401k+SH Match+PS A previously employee claimed to be an HCE turns out to be a NHCE. Let's call him Joe Joe is excluded from CB plan and also gets on no PS under DC plan. 401k deferral generated enough SH match to exceed 3% of salary so top heavy is satisfied. Plugged this into the program and combined testing says Joe does not need to get gateway. Just checking is the program is right?"

"An employer wants to have 2 separate 401(k) plans to exclude a certain class of people from receiving a profit sharing contribution. So let's say Plan A and Plan B. Plan A will exclude participants that will be in Plan B, Plan A will have the owners maxing out their 415 limit as well as paying some staff 10% PS and the rest enough to meet minimum gateway. Plan B will have only a specific class of employees with identical eligibility, but the employees that have met the service requirement will get a 3% SH contribution only. Will the plans need to be tested aggregately for gateway? Or will just passing 410(b) suffice? I'm seeing if it's worth it for the company to have 2 plans or just have 1 plan."

"So, if compensation for qualifying tips or overtime isn't taxable, does that have any effect for qualified plan contribution purposes? These aren't 'fringe benefits' so a plan that excludes taxable fringe benefits wouldn't exclude these on that basis. It seems to me that it shouldn't have any effect, but I'm trying to think situations where it might? Any thoughts on this?"

"I understand that new rules starting in 2024 disregard Roth balances when calculating RMDs. I also understand that an RMD is not required from a 401(k) if all you have in the account is Roth money. However, I am not aware of any rule prohibiting you from taking your RMD from the Roth portion of your 401(k) if you have pre-tax and Roth funds. Two recordkeepers (so far) will not allow you to take an RMD from Roth. Am I wrong or are the recordkeepers wrong? This excerpt from the IRS FAQs seems to agree with me. Q11. How are RMDs taxed? The account owner is taxed at their income tax rate on the amount of the withdrawn RMD. However, to the extent the RMD is a return of basis or is a qualified distribution from a Roth IRA, it is tax free."