"Sponsor of a 401k/Safe harbor Match/ Profit Sharing plan is adding a cash balance plan retroactive to 2024 (corp. tax returns not yet filed). they want to change 2024 Profit Sharing contribution allocation method, from integrated with social security, to new comp. Employees will receive a greater profit sharing contribution when using new comp as compared to integrated, so they are not losing anything. HCE's will be getting a smaller contribution because they are getting a big number in the cash balance. Can this be done by amending the DC retroactive to 2024, in addition to adopting the cash balance?"

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"Terminating plan has a 3(21) agreement and the plan sponsor would like to know if they require to submit any special document to disable this service. I've never come across 3(21) agreement does the plan sponsor need to complete any special requirement?"

"Profit Sharing Plan is pooled, so it not a directed investment of the participant. Participant has an account balance of $50,000. Participant has an outstanding loan of $10,000, terminates employment and accrues $500 of loan interest by the time he elects to rollover his entire account balance. Would this be correct: Taxable offset distribution of $10,500, consisting of loan balance plus accrued interest. Rollover would be for $39,500 -- i.e., $50,000 less the $10,500."