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About ErisaGooroo

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  1. Question #1: Is a participant in a 457(b) top hat plan required to cease deferrals in the 457(b) top hat plan for 6 months after taking an unforeseeable emergency distribution? The document is silent on this fact so I'm assuming the answer is no. Question #2: Client also sponsors a 403(b). It is my understanding that when a participant takes an unforeseeable emergency distribution from the 457(b) TH, the participant must cease elective deferrals in the 403(b) Plan sponsored by the same employer. Is this correct? Any input would be greatly appreciated!
  2. Afterthought... if it was payroll determination for the match, I think there would be an additional match due. If it was plan year determination, I don't think there would be an additional match due.
  3. What about an enhanced safe harbor formula that is 200% up to 2%? Does that satisfy the ADP safe harbor requirement? The overall match is 100% up to 4% if they defer 2%.
  4. I think the corrective match would be due on the three payrolls including lost earnings in addition to the $200 the participant deferred on the next payroll. I'm interested to hear what others think... good question.
  5. Thank you for your humble opinion and reply.
  6. I was wondering the same question. Does anyone want to take a stab at answering this question? Happy Monday!
  7. It is my understanding that the 5 year loan term begins when the funds are withdrawn from the participant's account (essentially the date of the check) rather than the date of receipt of funds by the participant. Do you agree? What if an amortization schedule is prepared with a 5 year loan term based on a date later than the date the funds are removed from the participant's account such as 30 days later from the date the loan is processed? This would cause the loan to exceed the 5 year max loan term at its inception. Would the entire loan be considered a deemed loan? In an earlier benefitslink thread dated back to 2003, IRS seemed to take the position that curing a missed payment after the 5 year loan term but within the cure period provided by the plan and within the normal limitations of 72(p)-1, Q&A-10 would not violate the requirements of 72(p)(2(B). Payments made within the cure period are deemed to relate back and considered made on the date the installment payment was due. However, something posted by QDROPHIL seemed to contradict this opinion and reverts back to the cure period not applying to the last payment. Thoughts on these two issues? Any official cites or reference to material on this topic would be very helpful. Thank you!
  8. I found this in the EOB and it gives me pause... to me this means as part of the negotiation, the union employee doesn't necessarily have to receive a benefit to be considered excludable. What am I missing? "Exclusion of union employees to test non-union plan (union exclusion). When testing a non-union plan, the collectively bargained (union) employees are excludable employees. A union employee is excludable only if the employee is covered by a collective bargaining agreement in which retirement benefits were the subject of good faith bargaining. ..... This exclusion recognizes the separate protections afforded union employees through the collective bargaining process. What the union employees negotiate in the way of retirement plan benefits (including no benefits) will not impact the ability of a non-union plan to satisfy the coverage requirements."
  9. Thank you. What if the evidence that retirement benefits were subject of good faith bargaining, and as a result, it was decided that some would receive a benefit as part of the contract and some would not? In other words, does the union employee have to actually benefit to be excludable as a union employee?
  10. TAXLLM, Any chance the entity is a steeple church? If so, there are some new church regs coming some time in the future (we have no idea when) which now will allow this type of merger. We know we will be able to do this we just don't know HOW yet.
  11. Would the union employees still be considered an excludable employee for 410(b) testing IF some of the union employees did not receive a benefit under the collectively bargained agreement? Some union employees benefit and some union employees receive no benefit under the terms of the collectively bargained agreement for the employer.
  12. I am wondering the same thing. Has anyone here heard any further guidance related to the implementation of such transaction? I have a steeple church 401(a) and 403(b) wanting to merge this year. Anything new to consider?
  13. Thank you both! Have a great week.