"This is the first year that we have plans utilizing the option to make a Mega Backdoor Roth, so I want to make sure we're displaying the mega backdoor Roth accurately. Is the money put in just lumped in as an employee deferral?"

"Based on the guidance issued so far, there are clearly many administrative requirements for a Section 128 Trump Account Contribution Program (TACP) including

• Developing a plan document
• Disclosing the TACP to employees
• Performing three non-discrimination tests (and correction of failures)
• Collection of employee certifications (ie, that the beneficiary of the Trump Account is anticipated to be the employee's dependent; and the beneficiary's date of birth)
• If the employee has multiple dependents, how much of the employer contribution will be made to each dependent's Trump Account
• Verification that employer contribution was made to a valid Trump Account
• Notification to the Trump Account trustees that an amount is a Section 128 contribution
• If the TACP permits employee contributions through a Section 125 cafeteria plan, facilitating employee's changes to 125 deferral amounts
• Funding of employer contributions to each individual Trump Account (ignore this one for now as I am hoping that BNY develops a common remitter program)

My question is....who do you think will be performing these administrative services? Payroll providers? Retirement Plan Recordkeepers/TPA's? Dependent Care Program providers? Employers themselves? Some new company/service provider that will enter the market? A combination of providers/employers themselves?"

"I have been asked by a client, whose wife is a single member business and sponsors a 401(k) plan ... can her 401(k) purchase an investment from my IRA? He has an investment that has a capital call and he doesn't have the $ to cover it. His wife's 401(k) is flush with cash. Can the do this? Would it be a prohibited transaction?"

"Employer deposited employee deferrals late in 2023. One 'set' of late contributions was deposited during 2023. The excise tax associated with this set is below $100. Another set of deferrals were not deposited until 2026. The excise tax on that set is over $100. In reporting on the Form 5330 for 2023, I assume all late deferrals are combined for 2023 and the tax calculated on the total lost earnings, regardless of when the late deferrals were actually corrected (with additional Form 5330s for 2024, 2025 and 2026 for the contributions that were not corrected until 2026). Employer is filing a VFCP application for the late contributions in 2023.

'How do the waiver of excise tax rules (PTE 2002-51) apply for the excise taxes owed for 2023? Can we view the two sets of late deferrals separately, where the excise taxes on the first 'set' can be waived because they are less than $100 and just pay the excise tax on the other set (the tax is over $100 and the correction was well past the 180 day deadline for waiver).

'I am inclined to just treat it as one prohibited transaction for the year and pay the entire excise tax owed. But I am seeing some discussion about only reporting the late deferrals in 2023 that were not corrected until 2026 because the excise tax for the other late deferrals that were corrected in 2023 are waived because they were under $100. I can't find any legal authority for this position and wanted to see if anyone else has had this issue come up."

"Due to the new Roth catch-up mandate, we have a couple plans with situations where the Roth indicator did not get turned on properly to allow the deemed Roth spillover.... I am checking on corrections: [1] any QNEC will be pre-tax for missed Roth, [2] if the missed contribution occurred more than 3 months ago then a 25% QNEC will be due based on missed deferrals during the applicable period of the year. How is this correction feasible under the Roth catch up mandate? It does not make sense that their catch ups will be a pre tax QNEC. Any thoughts would be appreciated."