"Am I correct in the fact that, if a client has a DB plan as well as a 401(k) that cover the same participants AND each plan satisfies 401(a) on it's own, the answer is 'no'? The client thinks if we answer no, this indicates the plan(s) out of compliance, which would not be the case."

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"A former spouse of a participant passed away. The QDRO requires the distribution in this case to be made to the estate. If the distribution is paid to the estate itself, what are the tax and penalty consequences? Is it the standard 20% Federal Tax withholding and no 10% penalty?"

"We are being told that it is acceptable to reallocate forfeitures on a per capita basis to anyone with an account balance, even if their 415 comp is zero for the current and prior plan years. Has anyone come across this before? If so what is the basis for allowing it? Curious as to why it works. I have heard this from a big recordkeeper and an ERISA attorney has confirmed it is also doable."

"In prior year, terminated plan paid out all participants, but apparently there is a remaining forfeiture account that had to do with incorrect contributions to participants (not due to unvested participants). Recordkeeper/TPA was supposed to use that forfeiture account to pay for closing fees. Fast forward 9 months later and that forfeiture account is still sitting in the trust, when the intent was to file a final 5500 for that prior year. Seems like 5500 is to be filed showing zero participants but with a balance, but I just don't know."

"My first missed 9/15 deadline for MRC in well over 20 years. I want to make sure I understand what needs to be done per my research. Client did not make the MRC by today, around 30k I checked 5330 and looks like it is section 4971a related. Subject to 10% penalty -- not sure when needs to be paid but will instruct as soon as filed. According to instructions, 5330 is due by 10/15 and no extension was required. It still needs to be paid by 12/31/2025 and if not then IRS could impose penalty up to 100% for subsequent years. I have to do interest adjustment based on the date they will make the deposit (if they will) Am I correct on all above?"

"12/31/2023 was first plan year for an owner only 401k Plan. No 5500-EZ filing needed due to assets under $250k. In 2024, there's now an employee. I will be filing a 5500-SF and indicate it's the first year to file. There will be a 1/1/2024 beginning balance of $50,000. Will the IRS look at a first year 5500-SF filer with a $50,000 beginning balance and send a notice to the employer wondering why a 5500-SF wasn't filed in 2023?"

"The contribution for a money purchase plan was made 2 days late. Will the client be subjected to a penalty for being only 2 days late?"

"Plan A's base plan doc uses a 190 HOS as an equivalency and is merging with and into Plan B, which credits HOS on an hour for hour basis. Plan A will merge into Plan B effective Jan 1 and both use calendar year computation periods. Under Plan A's adoption agreement, all contributions made under Plan A were immediately fully vested and all Plan A participants were immediately eligible upon hire.

"Plan B provides for a non-elective contribution for certain participating employers with graduated vesting schedules (but former participants in Plan A will not be employed by one of those participating employers as of the date of merger).

"In the event that a former Plan A participant becomes eligible for a nonelective contribution under Plan B after the merger, I see no reason why Plan B cannot credit vesting service HOS on an hour for hour basis (even though Plan A would have used a 190 HOS equivalency). To me this is a no-brainer -- but wanted to see if others agree; because, well, the service crediting rules are complicated."