"We are using a Third party to prepare our 5500. They sent me a copy to review and I noticed in Part III 8b it shows a loss of 41,465 for 2024. Outside of the yearly contributions for 2024 I calculate a net gain for the year of $25,300. Being a newbie I want to make sure the information is accurate before we sign and file it. Am I looking at this wrong?"

"A client has a NQDC Plan that they wanted to be triggered by change in control. The change in control they were expecting is occurring, but we reviewed it and they drafted the change in control definition poorly (it's 409A compliance, but too narrow and it doesn't cover this transaction). So, the payment that was supposed to be triggered by this transaction isn't going to be triggered. They would like to do a corrective amendment to expand the definition of 'change in control' to cover this transaction. Note: the transaction falls within a 409A-compliant definition, so that is not an issue, it just doesn't fall within the plan definition. I told them changing the definition would be an impermissible acceleration. Do you all agree, or is there some wiggle room here?"

"Participant is under age 59½ and has less than 5 years in the Plan. Participant took a hardship withdrawal and Plan Sponsor created 1099-R's splitting the H/S between both 401(k) and Roth. Plan Sponsor did not realize earnings on the Roth portion are taxable and they didn't calculate a taxable amount on the earnings of the Roth that were allocated to the H/S. They are asking now, after the fact, if the Roth portion of the H/S can be treated fully as basis. I looked in the Plan Doc but couldn't find that it specifies. It only says that a Plan Admin can choose how to order the money types. They chose to go prorata, and yes they are informing the TPA just now about this from last year."