Leaderboard

Why not just a 1 pager saying what the error was. I don't think you would need to reprint the whole giant thing.

Oh, the oddness is with me all right. Deeply ingrained, in fact. If I had been Homer, I'd have written the Iliad and the Oddity.

Why would you have to stop deferrals in any even if the plan was top heavy? To lower the TH minimum? In the case of stopping at 10,000, even at max comp, you're over the 3% allocation that drives the full minimum contribution. Thoughts on how the client "communicates" with the payroll provider? "You're fired."

Well, I assume that all your newcomp clients have a board mtg, decide on the PS contribution and proceed accordingly --- so if an individual HCE wants something different he must petition the Board for such a change. The Board then acts upon it.... I'm sorry, but I am not seeing this degree of strict adherence in the actuarial or TPA communities....I certainly have not seen any requirement in PSP's that things are locked down for 3 years as the atty suggests...

In case ETA's answer isn't clear 1st match is safe harbor - not discretionary 2nd match is a fixed formula in the document - also not discretionary 3rd match is discretionary, can not be more than 4% of pay and can not match deferrals in excess of 6% of pay.

I'll just say that there is some question as to whether the entire premium would be taxable, or whether just normal taxable term costs would apply. Or maybe I'm misunderstanding what Bill is saying in his post. I'd be more concerned with establishing a PS plan, and funding it with just rollover money to purchase life insurance. Unless you have other, "recurring and substantial" contributions, then I think you have a potential qualification problem. Thankfully, we have almost no plans that even permit life insurance, much less actually purchase it, which helps me to sleep at night.