"I just applied for a TIN for a 401k plan than with an effective date of 1/1/2020. The plan did not previously have a TIN. There was one participant, the owner, with a brokerage account. They plan will have 2 more owner participants in 2024. I took over the plan from a prior TPA and applied for the TIN online. The confirmation letter says 'Based on the information received from you, you must file the following forms by the dates shown: Form 945, 3/19/2024. After our review of your information, we have determined that you have not filed tax returns for the above mentioned tax period(s) dating as far back as 2021. Please file your returns(s) by 4/3/2024.' WHAT?!?! This plan has never had a distribution and no withholding required. What did I do wrong?"

"If an ineligible employee (NHCE) defers for a Plan year and the Plan Sponsor allows them to keep deferrals in Plan via a retroactive amendment -- would this ineligible employee (an NHCE) also receive the Safe Harbor 3% and/or profit sharing? Or would they essentially only be allowed to defer and receive a Top Heavy?"

"An individual owned his own business as a sole prop for 5+ years. No employees. No retirement plan. Within the past year, he switched to an LLC. I'm not sure if he has a new EIN or not. He also hired an employee after the LLC was created. He would like to start a SEP, but would like to keep the new employee out, at least for a few years per SEP eligibility. But can he be immediately eligible taking account of his sole prop service? Can a SEP count prior service with, in this case, the predecessor business entity?"

"On February 13, 2023, the participant took a $10,000 loan. The participant received the check and the promissory note, showing that her first payment was due on April 7, 2023. The recordkeeper sent the loan file. The employer admits it erred in not uploading the loan file to payroll's systems. No loan repayment was taken from the participant's wages. On August 14, 2023, the recordkeeper sent the participant a letter informing her that, if she does not pay, her loan will default. The participant does not admit she received this letter. Yet, the address is the same address to which the $10,000 check was sent, and, one assumes, received -- because the check was deposited. The recordkeeper's record shows the participant loan defaulted on September 29, 2023. In early 2024, the participant received a Form 1099-R, reporting the unpaid loan.

'The participant is 62, and works part-time. The plan treats the participant as not severed from employment. The plan does not provide a distribution on age 59½. The plan provides none of the SECURE 2019 or SECURE 2022 early distributions. The participant is ineligible for any further loan. The participant asserts she has no computer. That includes lacking a mobile device beyond an old flip phone. The participant asserts that she never looks at her pay confirmations. The participant asserts that she was unaware of any problem about the loan until she received the Form 1099-R report. The participant complains that she lacks money to pay even her Federal income tax (there is no State income tax) on the extra $10,000 income. If the plan's administrator (a committee of the employer) believes the participant's statement that she did not notice any problem about the loan until she received the Form 1099-R, should the administrator direct the recordkeeper and trustee to reverse the loan default?"

"This is the first time since we've been doing this MEP that a new company is joining mid-year. MEP has the same eligibility for all member companies: immediate for deferrals, YOS/semi for SH/PS (I know -- I've tried to get them to change). New member company (company just created last week) is joining effective 6/1/24. We expect them to be top heavy, so all those non-keys active on 12/31/24 will get 3% for TH minimum even though they are not eligible for any employer contributions.... well, now that it's 2024, we can actually not do that per SECURE 2.0 (all employees will be otherwise excludable for 2024 since they were all hired in 2024). But they want to be able to give the participants (including themselves) profit sharing for 2024. As long as it is stated in the plan document and/or adopting resolution, is it OK to waive the eligibility requirements for anyone employed on 6/1/24? Bonus question: since there is no short plan year, there would be no pro rating the limits for 2024 for this member company, right?"

"Joe owns Company ABC Mary is an IC and gets 1099 paid to Mary's Company XYZ from Joe's ABC. No relationship between Joe and Mary other than being siblings. Mary has a 401k plan under XYZ and defers max -- she gets a w-2 from her company XYZ. Joe has a 401k plan under ABC Joe makes a contribution under ABC 401k plan for Mary and takes a deduction. Mary has no W-2 from ABC nor is she an employee. How can this be corrected?"