"I just want to make sure I am understanding the rule correctly. Facts:

• Plan doesn't currently allow Roth deferrals
• Owners have SE Income
• 2 owners are 50+ and will defer up to their catch-up limit
• Employees have W-2 wages
• No employees are 50+
• No employees have FICA wages greater than $150,000

They are possibly moving from brokerage accounts to a Platform in 2026, and will likely add Roth deferrals at that time. They would prefer to no allow Roth until they are at a platform because they will have even more accounts to move. This Plan is not required to add Roth deferrals NOR remove Catch-up contributions right now because they don't have anyone that the Mandatory Roth Catch-up applies to, correct?"

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"Owner only plan, owner (over 50 years old) makes 50k in W-2 and makes full deferral plus catch up. They are required to have Roth catch up, correct? The plan also needs to be amended to provide Roth deferrals/catch up as well by 1/1/2026, correct?"

"A participant terminated employment in 2023. He was an owner, and was bought out. Apparently, there is some sort of a lawsuit -- the nature of which I have no idea, but the terminated participant is apparently getting some sort of settlement, and wants to know if he can contribute to the 401(k) for 2025 to save on taxes.... I 'think' I generally have an idea that a 'restorative payment' which is determined under the facts and circumstances [Rev. Rul. 2002-45] is not considered a contribution subject to 404, 415, etc., etc. But this dealt with fiduciary breach-type situations ... Assuming for the moment that this lawsuit is for other reasons, perhaps wage issues, unjust termination of employment, whatever, if the settlement is considered wages, then if he was still employed by the employer, he should be able to defer up to the normal limit. But, since he terminated in 2023 I don't believe he could defer into the plan. Could he?"