Leaderboard

"Although the plan has no difficulty with any coverage or non-discrimination test, the employer’s human-resources people want to “do something” to urge more employees to choose retirement savings. But whatever is to be done must involve no work time of the HR people, and must not ask the employer to spend any money." Wow! That sounds like such a great company! Where do I sign up!

well, the following might help the first 2 pages from an ASPPA talk by Richard Bednarski (1998) gives a basic explanation and the last 2 pages a worksheet (and a sample) by Larry Deutch which is at least as old and the brain gears in my head squeaking along just enough to remember I even had these notes because the info poured out of the head too many years ago when I rolled over in my sleep. sorry, should have worn ear plugs. poje useless and secret files.pdf

Are they on a PPA document? If the answer is yes you are done, the deadline is 4/30/2016 but it could have been done as early as May of 2014, I believe since that is generally when the preapproved PPA documents first became available. If the answer is no and they are on an EGTRRA document then they need to restate the plan by April 30, 2016. Answers above assume Plan is using a preapproved volume submitter or prototype document and is not individually designed.

I filed a zero participant/zero assets/non-final 5500 for much the same situation a couple years ago. No questions so far. But you never know.

I have no problem with an ongoing plan having a year or two with zero/zero. Such is the nature of eligibility criteria.

Why not just amend the plan to allow immediate entry? Maybe one year for the match. The first year the people are hired, they aren't HCEs anyway.

Unless you take steps to formally terminate the plan you still have a plan, just with zero eligible participants and zero current assets.