"Our client started a SEP in 2023 with one year of service as an eligibility rule. Employee was hired October 2024. In May of 2025 they updated the SEP to 3 years of service before eligible for the plan. If they do a SEP contribution for tax year 2025 is the employee required to receive a SEP contribution because they were hired under the 1 year eligibility? or does the employee fall under the 3 year eligibility?"

"Received a call from an Advisor. He has a prospect with 2 Partners, no employees. It is an LLC taxed as an S Corp and the 2 partners receive W-2 income. The Advisor and CPA want to set up the plan for 2025 and have the partners make the maximum deferrals before year end from a bonus check. The plan can be set up for 2025 but can they make the employee deferral contributions at this late date for the 2025 year? I question it because they take W-2 comp and not Schedule C or K-1."

"We started a new plan for Company R in 2025, and we just found out that the plan's financial advisor (through a shell company he owns 100% of) purchased 10% of Company R's stock sometime in 2025. The plan is on a recordkeeping platform that pays the advisory form some amount of bp (50, I think). This seems to be a prohibited transaction; I don't see any way for the FA to keep getting paid on this. And he should return all the fees paid to him since the purchase (with earnings) to restore the plan. Anything else I'm missing?"