"During 2020, did a proposal and never heard from the prospect and thought went away somewhere else. Just got an email from the CPA stating that, the prospect has been making contributions and taking deductions with no actuary and paperwork. No 5500 forms were filed but that is the easy part. They are now asking me to fix this. Is this something that can be self-corrected starting with 2020 plan year?"

"Plan sponsor wanted a plan that provided a 1% match to HCEs and a higher match to NHCEs. The match is calculated each pay period with the plan sponsor setting the match in with their payroll service provider at the beginning of the year. This provision is obviously problematic as employees might move from HCE back to NHCE and vice versa and from an HR standpoint is not very employee-friendly. I should add they have many well paid employees who however over and under the HCE threshold each year and are not owners. So for 2025 we see a couple HCEs who received more match than they should have. The match is discretionary but rigid and so the notice goes out. Seems we would transfer the excess match along with earnings from the participant's account to the plan's unallocated cash account. So there would e no distribution to the participant nor 1099-R."

"Owner must start taking RMD in 2026. He has Roth Assets of 500,000 12/31/25 Pre-Tax assets of 500,000 12/31/25 A current life insurance policy is also in the account. The 'cash value' as of 12/31/25 per the policy statement is 120,000. The life policy will remain active with premiums being paid. is the RMD calculated on 500,000 or 620,000? it seems to read on the IRS website that the life policy would not be included in an RMD calculation unless it is the year that the life policy is being distributed."

"Participant is subject to the Roth catch-up mandate in 2026. He has an old Roth IRA that is not part of the 401k plan. Participants direct their own brokerage accounts. He is asking if he rolls the Roth IRA to the Plan, will this enable him to deposit the Roth catch-up into the Roth rollover account. He is trying to avoid setting up another brokerage account just for the Roth catch-up. Is there anything else he should be concerned about in this scenario?"

"Former employee returned standard distribution election form (CCH): Rollover to 'IRA' Name of IRA: 'xxx xxxx Corp' We have always instructed trustee to make checks payable to : 'xxx Corp IRA FBO former participant' Any thoughts on if writing the check to just a Corp. is ok? Does it leave the plan with any liability as to the tax exempt status of the distribution?"