"This plan is our CPA client not our TPA client. The TPA is now indicating the plan needs an audit for 2024 which of course will not be done by Oct 15. The 2023 5500 shows 125 participants with an account balance as of 12/31/2023. So presumably there would be 125 as of 1/1/2024 which would mean an audit. The plan never crossed the 120 threshhold under the old or new counting rules until now.

"Does account balance mean actual money deposited into ones account or does an accrued contribution count? This employer likely funds the 3% nonelective and profit sharing contributions for 2023 sometime in 2024. So some employees have an accrued plan balance as of 12/31/2023 but not an actual plan balance. I believe admin systems count the accrual when determining the count for 5500 purposes.... I don't remember what the consequences are of filing a 5500 without the audit report, and adding it later as an amended 5500. Thoughts?"

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"Can the deferral amount used for ADP test be reduced by the available catch up for the year on the front end? For example, have a catch-up eligible participant that deferred $27,000 during 2024. The deferral amount used for the ADP test was $23,000 (401(a)(30) limit for 2024). Since the participant is catch-up eligible can $7,500 of the $23000 be classified as catch-up reducing the amount used for the ADP test to $15,500 ($23000-$7500)?"

"Many adoption-agreement forms for a set of IRS-preapproved documents present a choice of ways to define a disability. Often, one of those ways is to follow the Social Security Administration’s determination that the person is eligible to receive Social Security Disability Insurance benefits under the Social Security Act of 1935. Suppose the plan sponsor ticked that box. But what if there would be no Social Security determination because the participant is an alien, but not a qualified alien, or is a citizen or qualified alien but lacks sufficient Social Security work credits? Does a basic plan document provide a fail-safe provision to determine a disability if there would be no Social Security determination? And what if no document states any such provision: May a plan’s administrator interpret the plan to treat a participant as not disabled, absent a Social Security determination, no matter how bad the individual’s physical or mental condition?"

"We have a new hire that elected Roth, but the contributions were mistakenly set to pre-tax. This only occurred on his third paycheck. I'll be working with our 401k provider to move the funds to the Roth account, but What else do we need to do to correct this? Is a QNEC necessary?"

"26 CFR 1.436-1(a)(3)(ii)(B) Application of section 436 after termination of a plan -- Please indicate if unpredictable contingent event benefits form part of the exceptions for plan terminations."

"For some reason, a plan has allowed a lower paid participant to contribute Voluntary After Tax instead of as Roth 401(k). Annual contributions are around $1,000. I can't seem to think of a reason why this would be better for the participant. Aside from that, Voluntary After Tax Contributions are not even in the Plan Document, so I'm wondering if it's an oversight and they can be reclassified at the recordkeeper as Roth Contributions."

"A business is 100% owned by an ESOP. The question came up about RMD. The employee involved was a >5% owner 10 years before the business sold to an ESOP and he was well below the RBD age. I think we are ok with no RMD to this person."

"I know for PBGC covered DB plans, you must give notice to the participants 60-90 days before plan termination. For Safe Harbor plans, you must give notice 30 days before plan termination. Are there any requirements to notify the participants in profit sharing plans or non-PBGC covered DB plans? Do you have to give 15 days notice before plan termination, or can we make the termination date the same day we are preparing the amendment in these cases?"

"Is it possible for a terminated plan to file Form 8955 with an end date different than the 5500? Example: plan final 5500 2/28/2025; 8955 3/31/2025."