"This is actually a 2 part question for me: [1] I have a client in which a certain class of employees earn regular wages from the company as well as prevailing wages from the contract company. I know that since prevailing wages and the regular wages are part of the W-2 income, the plan cannot exclude prevailing wages. However, prevailing wages can be used to offset employer contributions. Will the prevailing wages used to reduce employer contributions also reduce the total reported income on the W-2? [2] When combining the regular wages and prevailing wages, some of these employees will be classified as HCEs (solely based on compensation) when their YTD total wages are prorated. Is there a way for these people to remain NHCEs? I'm trying to reduce/eliminate as many issues so that the plan can operate smoothly."

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"Employer resolution (timely made) clearly stated that the money purchase plan was being frozen. The amendment itself (timely made) did not specifically state that the plan was frozen, but it reduced the formula to zero. 204(h) notice/SMM (timely given) specified that the plan was frozen. Question -- although no one could accrue a benefit after the freeze date, do new employees become eligible, even though they will be eligible for a zero contribution? No coverage or nondiscrimination issues. Would you count these people as 'eligible participants' on the 5500 form line 6a 1 and 2?? Plan is large enough that an audit is required whether they are counted as participants or not."

"What options, if any, are there for a company that fell upon hard times very recently. They have a basic safe harbor match in the plan and the owner is asking is there any way to get out of that for 2025 (calendar year plan)? No HCEs have made a 401k contribution for 2025 and have no plans to do so. Just the NHCEs."

"My ex was a teacher who did not contribute during that time into SS. Now with the Social Security Fairness Act she will get that. Am I due a portion of that now?"