"This week in reviewing an existing 401(k) plan document there was a written in class exclusion for Non-Highly Compensated Employees. In the Other line option in the adoption agreement.... It is a small plan, likely owner only, but still. A few weeks earlier I saw a similar exclusion in a defined benefit plan for a small employer. Though that class exclusion did not use the term Non-Highly Compensated Employee. It was something like 'everyone except two of the owners, Jack Smith and Jill Smith are excluded' that employer definitely had plenty of employees that are NHCE that have plenty of service and cause the testing to fail. And no, there did not seem to be any other plan with this one combined for testing and benefits.... Maybe these exclusions are written in more than I realize and I've just been fortunate enough to not see them up until now?"

"I have been presented with a 457(f) plan that relies on a noncompete provision to satisfy the SROF requirement. I understand that unlike the 409A rules, the 457(f) rules do permit the use of a non-compete as a SROF. This particular plan's SROF restricts the participant from working for a competing business while employed with the sponsor of the 457(f) plan. But the participant vests upon a separation from service for any reason. The participant is not subject to a post-employment non-compete obligation. As such, the participant is only subject to a forfeiture if they work for a competing business prior to separating from service from the sponsor of the 457(f) plan. I am also troubled by the fact that the payment is to be made 'within 3 months after separation from service and the appropriate distribution paperwork is submitted to the employer.' This would not appear to be exempt from Section 409A as a short term deferral and it lacks the required specified time for distribution."

"I have a new client coming on that has been doing a simple 401(k) but are now transitioning to a full 401(k) Plan. My question is for startup purposes, when I'm filing a Form 5500 would the start date be now (when it's transitioning to a traditional 401(k)) or would it be the date the Simple 401(k) started?"