"If a participant takes a loan out of their 401k plan account and they take the maximum amount available -- 50% of their vested account balance (they are 100% vested). A few months later, they have a hardship and would like to take a hardship withdrawal that would remove most of their balance in the plan. Is this permitted? If so, it would drop their investment balance and the outstanding loan balance would now be well over 50% of their total account balance."

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"Hello, I’m a terminated participant in a small employer-sponsored Defined Benefit Pension Plan that was retroactively amended after the plan sponsor realized employees were mistakenly excluded. I’m looking for advice from those familiar with ERISA compliance and DB administration -- especially regarding timelines for distribution, participant communication, and what constitutes a “reasonable” delay. Here’s a timeline of events for context:

• Mar 2012 - Began employment at Company A.
• 2015 - Company B launched; work shifted there, but payroll remained under Company A.
• Jan 2020 - Owner established a Defined Benefit Plan without informing or including employees.
• Aug 2024 - Employees notified the plan would be frozen effective August 31. Plan sponsor claimed he had received bad advice and was correcting the error.
• Sept 2024 - I was involuntarily terminated shortly before turning 55. Termination was attributed to cost concerns related to plan corrections.
• Oct 2024 - Received an estimated benefit calculation (2020-2023 only).  Sponsor stated 2024 portion was still pending.  I turned 55 and became eligible for benefit commencement under ERISA.
• Dec 2024-Mar 2025 - Followed up multiple times. Sponsor provided vague responses, no new documents, and no updated calculation.
• Jun 2025 - Sponsor stated original actuary was replaced by a new vendor who is re-reviewing everything.  Promised to resend plan documents and updated estimate -- nothing received. I spoke with DOL rep, who said resolution was expected by September 2025.
• Sept 2025 - With four days left in the month, still no update. I followed up again. Sponsor responded defensively, said the situation is "stressful" and “complicated,” and that he “can’t provide details” until authorized. Also discouraged me from speaking to DOL or other employees -- despite his lack of communication.

My Questions:

• Is it common or acceptable for a DB plan sponsor to take over a year to finalize calculations for 7 or fewer employees?
• Does switching actuarial firms justify months of silence with no updated estimate or election paperwork?
• At what point does this become a breach of fiduciary duty or an enforceable ERISA violation?
• What recourse does a participant have when the plan sponsor won't respond, and DOL appears to be passively monitoring?

Thanks in advance for any insights. I'm trying to avoid escalation, but the silence and lack of transparency have gone on far too long."

"When reconciling employee deferral/Roth contributions to deposits on an annual basis there is a shortage (and overage) for some participants -- but a net shortage overall. When this doesn't tie out to a specific payroll (or at least doesn't appear to since I don't have payroll and deposit detail by paycheck) and the amounts can be small ($4 or $20, for example) -- do you report these amounts on the 5500 as late deposits? Would you need to track down the shorted paycheck for lost earnings calculations?"

"Curious on thoughts about offering both an cash in lieu incentive and a spousal incentive HRA."

"A SERP of a tax exempt org, provided for vested payment at age 65. Like most such SERPs it was structured as a 457(f) short term deferral. The SERP was later amended to allow the CEO/participant the right to select an earlier vested retirement date, provided it was [1] at least 12 months after the election, and [2] was forfeitable if he resigned prior to that new date.

"Allowing a participant this much discretion at first concerned me. However, it is not illegal for employers to accelerate short term deferrals. What is wrong with an employer delegating that power to a covered participant? These are just short term deferrals. If that does not trigger income tax at the date the power was given the participant, what would be the tax date? Would it be 12 months after the power was granted, i.e. the first day after the 12 months, or would it be the actual date the participant elected if later than 12 months?

"The person who drafted this amendment was in the HR Department and was insensitive to 457(f) but I wonder if this design actually works. My primary concerns are constructive receipt and/or the fact that IRS could consider vesting to be a charade after the first 12 months when the participant has this much control."

"Year 6 of a one participant DB had no AFTAP done. Therefore benefit accruals are frozen as of the end of year [5] That means no benefit increase for year 6 until a subsequent AFTAP is done and is high enough such that prior year's benefit accruals are restored. My understanding though is that for funding purposes, that is not an issue for year [6] In other words freeze the benefits because of no AFTAP but go back and assume a benefit accrual for funding purposes. In other words, benefits are frozen but not considered frozen for funding purposes. Does anyone agree/disagree?"

"I recently ran across this book, 'A Year in the Life of a TPA'-- I downloaded it on Kindle (free) and was impressed by how it simplifies a lot of the 'annual cycle' we deal with as TPAs. It seems like a short-but-sweet outline of otherwise complex work. I am considering ordering a few copies for our staff. Has anyone purchased this specific guide? What other reference guides do you recommend for a TPA firm to keep on hand?"

"A very recent takeover plan for 2024, EOY val. Cannot determine the benefits calculated by prior firm and waiting them to explain but not likely by 9/30/2025. 2024 AFTAP was certified at 110% back in September 2024 and prior years have always been over 100% By looking at the possible benefits and nice return on investments, I think the actual AFTAP will be certified well over 100% (based on some conservative calculations). Client already deposited 2024 contribution, nice sum. Small plan with 3 participants. Thinking of generating a range AFTAP for 2025 with at least 100% (based on prior history) and have it certified by 9/30/2025 so that the plan can avoid any restrictions. If the above is doable, when does the actual AFTAP for 2025 needs to be certified or am I wrong that the actual AFTAP has to be certified by 9/30/2025?"

"The 2016 proposed regs. require a 90 day notice, a minimum 2 year deferral period, and a benefit enhancement greater than 25%. However, because 457(f) plans are also subject to 409A, when applicable, it seems that a postponement election must also meet the 1 year advance notice/ 5 year minimum postponement requirements of 409A. If both statutes apply, the rule in the 2016 proposed regs is meaningless except for the requirement to add the enhancement. In other words, complying solely with 90 day notice and 2 year postponement results in an automatic 409A violation. This makes no sense, but I have yet to see anyone in this field take the more logical position just to follow the postponement rule in the proposed 457(f) regs and to ignore the 1 year/5 year 409A procedures. Has anyone taken the aggressive position to ignore 409A procedures and just follow he 457(f) procedures? This would seem to be good faith, because I haven't seen anything from IRS that definitively requires that both postponement procedures be followed."

"Imagine there is a US government shutdown in October. (In the past 30 years, shutdowns were 1995 -- 26 days, 2013 -- 16 days, 2018 -- 38 days.) Imagine the shutdown lasts through October. Imagine the Bureau of Labor Statistics report on inflation to September 30, usually released in October, is not released until late November. Imagine the [IRS]'s yearly notice of inflation adjustments for retirement plans, usually released in early November, is not released until mid-December. What steps would you change or delay while waiting for the IRS's notice? Would you put estimates in your software? Or wait for the official notice? If there is a communication to send, would you: delay it, if it's not required by 30 days before 2026? send it, but describe limits or factors without specifying an amount? send it, with estimates (flagged as estimated) for each inflation-adjusted amount? How else might a delay of inflation adjustments affect your work?"

"The Federal Register is scheduled tomorrow to publish the IRS notice of PTIN user fees for 2026. It will say the 'amount of the user fee as $10 per application or application for renewal, plus an $8.75 fee per application or application for renewal payable directly to a third-party contractor.' There are 14 pages of history and legislation disclosing how the IRS arrived at the new number. The 'big' news is a reduction in the PTIN user fee to $10 from $11. (Start planning now on how to use this windfall. ?)"