Leaderboard

Congratulations! Enjoyed our many conversations over the years.

Congratulations Mike! Definitely well deserved.

CONGRATULATIONS, MIke. Well deserved.

Happy birthday to Dave Baker -- 29 (again) today!

I'll take the road where many of my plans do not include ANY loans.

You can, as part of an employment agreement which defines the total compensation package, provide that a person's base pay is permanently reduced by X amount which will be contributed as an employer contribution on the employee's behalf. Like plans that require employees to contribute as a condition of employment - the amounts do not count as deferrals. However, providing annual discretion - which if you do with matching contributions that indirectly provides discretion - then I think you have a CODA instead. Unless with a match the maximum is assumed and "charged" whether he gets it or not. Much easier to defend at the start of employment (or plan) - the total compensation package is X and it is comprised of base pay A, retirement plan contributions B and H&W benefits C plus whatever incentive pay is earned. If there's a waiting period then define up front these components before and after, because doing it only when the person becomes eligible looks more CODA again. Of course, if someone takes a lower comp because of these "employer provided" contributions that are subject to a vesting schedule - that's another complication. In summary: defining the total compensation package by component in employment agreement at employment commencement - good - reducing a participant's pay arbitrarily to pay for his matching contributions - bad.

Occasionally?

Then, you can see where the forfeiture pays the match and profit sharing totaling $2,882.38 and a reduction for deferrals and loan repayments of $1728.01 (which IS a problem). You "may" look at the option of correcting this as if it were late deposit of deferrals and loan repayments where the $1,728.01 (along with earnings) are deposited back into the forfeiture account. Each participant's account is whole, since they received exactly what they were entitled to receive when they were entitled to receive it. The forfeiture account is short. This would appear to be a reasonable method of correction. Good Luck!

Here's just one picture that he got....DSLR attached to his telescope, but not his laptop (so he calls it manual..usually he sets up a timing sequence through laptop software but his laptop died morning of)