"If participant died in 2020 and estate is beneficiary (subject to 5-year rule), CARES act said 2020 is ignored for purposes of 5-year rule. Is distribution due in 2026, or was it due in 2025? Recordkeeper is arguing that we create a fiction that participant died in 2021, such that distribution is due in 2026. I don't think that's what CARES Act said but it would be a good result if everyone here thinks recordkeeper is right!"

"Two spouses own two S-corps:

• MS owned by J 51% and her husband O 49%
• OC owned 100% by O
• It's a controlled group because O owns part of MS.

"Each business has only one other employee, an NHCE. OC has a 401k plan (I don't have any other details yet). Of course, J wants a 401k plan to cover MS... and only MS.

"I want to say that as long as the populations are stable, then this is OK. No matter what feature I put into the MS plan, I'll either have: 1 HCE benefitting, 1 HCE nonbenefitting, 1 NHCE benefitting, and 1 NHCE nonbenefitting = 1/2 / 1/2= 100% or 2 HCE benefitting, 2 NHCE benefitting = 2/2 / 2/2= 100%

"This seems... simplistic? Like I'm missing something? What trap am I unwittingly walking into (other than the one where one of the NHCEs leaves and the testing fails and it's a disaster)."

"Existing 401k plan for a sole-prop. The election for deferral amount had to be made by 12/31/2025 for 2025 as it cannot be done by 4/15/2026? After year end only applies for new plans. Am I correct?"