Leaderboard

To clarify, "frozen" might be an acceptable informal way to describe the activity. But I try not to use informal words that have a real meaning in a different context and don't like it...had a very difficult time with a client once who kept using the term "distributions" to mean "contributions" and he was asking why we were giving "distributions" of new company money to participants who hadn't been employed for some time. Sort of a "who's on first" routine b/c the conversation made no sense until we started talking about actual names involved.

Assuming it was an asset sale, and not a purchase of the entity itself by the buyer, the old entity can continue through 12/31. No problem at all.

My guess is that it's okay as long as you have a document that spells it out properly. A typical prototype might say that all the non-elective contributions are subject to one vesting schedule. And you shouldn't be able to amend later to un-vest the folks who may already have been swept in with full vesting. But I'd think new participants could be put on a 6 year schedule going forward.

IRS Loses $175 Million Class Action Lawsuit The basics: IRS made PTINs mandatory IRS justifies annual PTIN fee with 31 U.S.C. § 9701, which allows agencies to charge for a service or value provided Two CPAs sue the IRS claiming that the IRS was not allowed to require PTINs and was not allowed to charge PTIN fees Court held that the IRS can require PTINs, but that the PTIN is not a service or of value to the preparer, so the IRS cannot charge PTIN fees Furthermore, the IRS must refund PTIN fees to the class (which includes many of us)

one of the pension parody songs I did was Cat's in the Cradle (1974). not quite 50 years, but getting there. One always hopes when choosing a song that at least some of the people have heard the original. one lady in the crowd informed me later that she got a big kick out of the parody because it turned out her husband played back up drummer for Harry Chapin. The plan arrived just the other day The company added a 401(k) They put in a match, and what can I say I deferred in the usual way The cash was growin’ ‘fore I knew it, as I put away I’d say, “I’ll have a lot some day, yeah You know I’ll have a lot some day.” And the cat’s in the cradle and the silver spoon, Little boy blue and the man in the moon. “When will I retire?, well I don’t know when, But I’ll have a good time then You know I’ll have a good time then. The plan turned 10, just the other day I said “Thanks for it all, I’m doing okay” I invested low, now its high today I’m glad I deferred 10% of pay As I saved away, my wife her smile never dimmed Said she “I admire him, yeah, You know I admire him.” Refrain The plan was tested just the other day It failed ADP in a big time way They put in a QNEC once in a while Good news for me I said with a smile The deferrals were too high for the HCEs See you later, can I thank them please? Refrain I retired just the other day I was sick of work and the rate of pay But I said “The 401(k) was such a good find The money is there and it grew over time” Well the job it was a hassle, but now I’m free I recommend you save like me Recommend you save like me. Refrain ................ all kidding aside, today (6/6) is 73rd anniversary of D-Day. Many thanks to those who gave their lives for freedom's sake.