"If for 2025 a participant age 50 made 401(k) deferrals of $7,500 can they make a profit sharing contribution of $70,000 (assuming salary supports it) to get to the maximum annual addition by characterizing the $7,500 401(k) deferral as catch-up?"

"A participant passed away, and the most recent beneficiary form shows his mother as primary beneficiary and sister as contingent beneficiary. We have confirmed that there are no spouses, children, or anyone else in the picture. Mother is in an elder-care facility with dementia, and Sister has a POA 'for all financial matters' -- we've asked for a copy of the POA to confirm. What's the right direction here? Let's assume that the POA does say what we're told it says. I assume we can then take direction directly from Sister and distribute however she completes the forms? Is there any particular language that I should be looking for on the POA? I understand that this might be attorney-time, but if I can facilitate this somehow, I'd like to help."

"DRO (titled 'QDRO,' and which facially meets QDRO req's) was issued by state court in 1996 dividing husband's account in a 401(k) plan (the 'Old Plan') equally between husband and ex-wife as of a certain date in 1996, including 'any earnings and losses on [the divided] sum from said date to the valuation date preceding distribution.' QDRO stated that ex-wife's 'sum shall be left in [Old Plan] but transferred to the name of Alternate Payee as soon as practicable after the order is deemed qualified and following receipt of a certified copy of this order by the Plan Administrator.' It appears this 1996 QDRO was never submitted to Old Plan. Over the years, Old Plan underwent a number of successions based on company mergers and acquisitions, and in 2022 was being administered by what I'll call 'Intermediary Plan.' In 2022, plan sponsor of Intermediary Plan sold a portion of its business to a new company, which then created its own 401(k) plan ('New Plan'). Husband's account in Intermediary Plan was transferred from Intermediary Plan to New Plan via a 401(k) to 401(k) trustee to trustee rollover, i.e., a non-taxable distribution.

"Now, nearly 30 years after the 1996 QDRO was first issued, husband died and ex-wife submitted the 1996 QDRO to New Plan (husband's entire account in New Plan would otherwise pass to deceased husband's new wife). It appears to New Plan that this was the first time the QDRO has ever been submitted to any plan. New Plan contacted Intermediary Plan about the existence of any QDRO and Intermediary Plan stated that it had no record of any QDRO related to husband at all. None of New Plan's records, including those relating to the 2022 rollover, state anything relating to the existence or possible existence of a QDRO. New Plan doesn't know what to do. Even if the QDRO is valid as to the New Plan (which seems unlikely, especially given the 2022 distribution), New Plan seems unable as a practical matter to account for any amount that might be owed to the ex-wife because New Plan has no idea what the value of the account was on the date it was putatively divided in 1996, and all of the subsequent contributions by husband and/or his employer after the division date (and the growth/loss thereon) would be his alone.

"Any input on this unusual situation would be greatly appreciated. It seems to me that 1996 QDRO is inapplicable to New Plan (because New Plan is not legally a successor to Old Plan and/or Intermediary Plan, though I'm not 100% certain of this conclusion), meaning New Plan should distribute the account to new wife. But maybe the best thing for New Plan to do is file an interpleader and let the court sort it out? Or perhaps ask ex wife to go back to state court to try to obtain a QDRO directed to New Plan?"

"Seeking compliance clarification on two items. [1] HIPAA Special Enrollment Rights -- Do I understand correctly that when an employee experiences of these events, in addition to adding a spouse or child to coverage, they must be allowed to add other dependents and change health, dental, vision plan elections? [2] Section 125 Plan Safe Harbor requiring reinstatement of same coverage within 30 days of loss of coverage due to rehire, expiration of benefit eligible FMLA or non-FMLA leave. Can an employer require/allow employee to make new elections if they want to? If so, should this be specified in the Plan Document and SPD?"