"If you do not have a spouse and name your trust as the beneficiary, can each beneficiary of the trust rollover their portion into a separate inherited IRA so each can determine when they want to take their taxable distribution within the 10 year period? If yes, what is the process of rolling the funds to the trust then beneficiaries?"

"An employer sponsors a non-safe harbor 401(k) plan, 1/1 plan year, prior year testing method. The plan provides for a QNEC (3% of pay), allocated to both HCEs and NHCEs. In terms of including the QNEC in the ADP test, ACP test, or not at all - are there any best practices (especially given that the prior year testing method is used)? For example, can the QNEC be included in the 2025 plan year ADP test, but not included in the 2026 plan year ADP test? If this were to occur, the 2026 test would include a HCE average that does not include the QNEC, but the 2025 NHCE average (used in the 2026 test) would have the QNEC included. I assume this is not allowed? Or, perhaps it is allowed as long as 401(a)(4) requirements are met. Thoughts?"

"Employer maintains a 401(k) plan and an ESOP. Employee who was a participant in both plans terminated employment in 2018 with vested benefits and was rehired in 2024 on a part-time basis. Both plans used the one year holdout rule (not applicable to deferrals under the 401(k) plan), so the employee became a participant for purposes of deferrals under the 401(k) plan upon rehire, but was not eligible for 401(k) match or ESOP allocations, subject to completing a Year of Service. The employee has not completed a Year of Service in any computation period since being rehired. Effective 1/1/2025, the 401(k) plan was amended to become a safe harbor plan (with safe harbor matching contributions), and both plans were amended at that time to remove the one year holdout rule and provide that rehired participants become participants on the date of rehire. The employer has not treated the rehired employee as a participant for the safe harbor match or the ESOP, believing that the one year holdout rule still applies to her, but the TPA believes that the employee should have become a participant for both the safe harbor match and the ESOP as of 1/1/2025. I am leaning toward the TPA's position, particularly with respect to the safe harbor match (it doesn't seem like the plan would satisfy the safe harbor if a participant is eligible for deferrals but might not be eligible for the match). The ESOP is a bit fuzzier, but the TPA's position seems logical in that the removal of the one year holdout rule should apply to all rehires, but not retroactively to a date prior to the effective date of the amendment. Thoughts?"