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December 5, 2025

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DDB BN created a topic in 401(k) Plans

Roth Catch Up Required or Not

"Plan Sponsor has non-union and union compensated employees. Union compensation is excluded from the plan. One of the employees will have W-2 FICA wages of about $70,000 in non-union compensation for 2025 and W-2 FICA wages in union compensation of about $125,000 for 2025. Is the union compensation included to determine if the employee's compensation is over $150,000 for Roth catch up for 2026?"

5 replies so far   |    Click Here to Add a Reply

Belgarath created a topic in Retirement Plans in General

Retiring the End of This Year - Hurray!

"I have made the (not all all difficult) decision to retire at the end of this year. I have agreed to work a couple of days a week during the early part of next year to help out my employer while they hire a replacement, but it's a limited engagement. I'll be lurking on these boards for a while yet. I'd like to take this opportunity to thank Dave and Lois for providing this magnificent resource -- it has been a tremendous asset! I'd also like to thank all of you folks, past and present, for the invaluable assistance you have given to me over the years. I've certainly taken more than I've given, and your time, generosity, and expertise is appreciated more than you can ever know. It's not just the technical expertise, but the sounding board for discussions, sometimes griping (misery loves company) and humor in the face of statutory and regulatory foolishness that makes this such a great community. I wish you all the best in your future endeavors (I'm trying hard not to gloat) as you continue in this business, and I hope you all have a great Holiday season! Take care, and again, a heartfelt thanks!!!"

1 reply so far   |    Click Here to Add a Reply

Chaz created a topic in Cafeteria Plans

Another Cafeteria Plan Nondiscrimination Test Conundrum

"A small employer offers only fully insured medical insurance to its employees and employees pay their share of the cost of coverage through a cafeteria plan. One (and only one) highly compensated employee is provided with additional cash compensation for opting out of the medical coverage. Does this violate the benefits portion of the cafeteria plan nondiscrimination tests? If so, what is the consequence to the one HCE?"

2 replies so far   |    Click Here to Add a Reply

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Plan Installation Manager  View details

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