"EE worked 9/19/2016-12/1/2016, Rehired 9/5/2025. On FTW document, 6e is marked for 6 months of service, elapsed time. With monthly entry dates. Neither Rule of parity or one year hold out are elected. Since he was gone more than 12 month and more than a 5 year break in service and he did not meet eligibility, does his 6 months start over?"

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"We have a client that we have been treating like an ALE in 2025 because their average employee count for purposes of ACA was 51 in 2024. In that calculation we excluded both owners since they are Shareholders in the S corporation with a 2% or greater share. The owners each have Spouses and Children that work in the company as W2 Full-Time employees that were included in the calculation. We thought this was done correctly, but we just had a situation that is making us second guess our calculation. Another client of ours is approaching ALE status and is starting to forecast their employee count for the rest of the year. They are using a 3rd party Payroll/HR vendor that is telling them they can exclude the S-Corp owners and their family members due to Stock attribution rules. I can't seem to find anything that covers this. Has anyone else heard this?"

"I know that when you are testing both a 401(k)/Profit Sharing Plan and Cash Balance Plan together, the contributions to the Profit Sharing are limited to 6% of eligible compensation. Does that 6% include any Safe Harbor Match that is made to the 401(k) Plan? Or does it only apply to the Profit Sharing?"

"When would you use code 2D on line 9a? I have a 401(k) Profit Sharing Plan where the employer also maintains a cash balance plan. Because the CBP was not PBGC covered in the first year, the 31% rule is applied; accordingly, the 401(a) feature of the 401(k) PSP is capped at 6%. My thought is this sounds exactly like 'Plan benefits are subject to offset for retirement benefits provided in another plan or arrangement of the employer', but I've not swam these waters frequently and I'm not able to find any guidance on this code in particular."