"Client has sold the assets of their LLC, employees received their last paycheck 9/2/2025 and were obviously notified of the plan closing. The business is not closing, and the new owners do not want the responsibility of the existing plan. Can the plan termination date be 12/31/25 even though the employees were off payroll earlier? In order to calculate the employer contribution, obviously a P&L is needed; I have not yet seen a P&L for less than a 12 month period."

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"What year do you file the 5500 for if the plan is an off calendar year plan. For some reason I wasn't able to read in the 5500 instructions on which year you'd file the 5500 for. Maybe I'm missing something?"

"A Plan has two participants, a husband & wife, both of which are deferring the maximum 401(k) contribution for the year: Husband -- $100,000 salary Wife -- $23,000 salary Wouldn't the maximum deductible contribution be 25% of the total between them ($123,000 x 25%)? I know the wife's full salary is being deducted as a 401(k) contribution, but couldn't we still use her salary and give the husband the total 25% of their combined salaries as a profit sharing contribution since her salary is still technically eligible income?"

"Talking to a potential plan, and there are two f/t employees and 10 who are 'half-time'. Assuming that these people really do work only half of a f/t schedule, do the rules really let us treat this as 2 + (10 x 50%) = 7 and therefore exempt from the mandatory automatic enrollment? I realize that it might be safer to just include it for many reasons, but if the client is really against it."

"We have a client that maintains 2 plans with us, one of which uses safe harbor match and the other that does not use a safe harbor contribution. They became a control group 2 years ago and we have relied on the transition rule to avoid coverage but that is expiring. What happens if the plans will not pass coverage to be able to be tested alone and technically need to be tested together? I know you are not able to aggregate plans for testing when one is safe harbor and one is not. At this point, they do not want to change the plan design of either plan so we are trying to figure out how to fix this if coverage fails."

"I came across this article from Verrill about implementing Roth Catch Ups when a plan has a provision to spillover deferrals to a NQDC once the 401(k) limits are reached. The article in particular highlights a potential conflict between giving the participant an effective opportunity to elect out of a deemed Roth election and a requirement to make deferral elections before the start of the year for the NQDC.

'The article makes suggestions on steps to take now to be sure the operation and administration of plans with the spillover/link to a NQDC is reviewed before 2026 starts, and that everyone involved with the plan -- plan administrator, plan sponsor, service providers, participants -- are all informed. This wasn't on my radar screen when discussing implementing Roth Catch Ups, so I am sharing it in case others also have plans that use these features."