Plan is safe harbor match with immediate entry for 401(k) and 1 year wait for safe harbor match. Participant is hired in March, 2005. He earns $100,000 in 2005. For 2005, he is an otherwise excludable employee so he does not have to be included in an ADP test. In March 2006 he becomes eligible for the safe harbor match. For the 2006 plan year, how do you test his deferrals? He satisfies the safe harbor from Match - December, but does not satisfy it from January - February. He is also no longer an otherwise excludable employee, since he does have 1 year of service.

I have a DB plan which is currently just barely top heavy ( i.e 62%) - it wasn't TH last year but was the year before - under the current plan formula, non-keys will get at most 12% of final average pay after 30 years of service - a far cry from the 20% TH minimum required after only 10 years of service.

A Question/Poll for Other Practitioners : For funding would you assume continued top heavy status and fund for 20% of pay for those non-keys expected to have at least 10 years of service at NRD ?

PS: This is one of those "Doctor Plans" for those practitioners who go back a few years and is general tested each year - it passes (a)(4) due to the large build-up in a sister DC for the non-keys/non-hces --------- under this DB plan the Docs get 60% of FAE after 30 years.

I have a new DC plan in 2004. At year end there were over 2,000 participants. Although there were participants techinically eligible on 1/1/2004, there were no assets and no one had an account balance. There is an end of year requirement for an allocation. I would think that there we no participants on 1/1/2004 and certainly not on 12/31/2003

I don't find guidance in the 5500 instructions regarding new large plans. What I do read is that the large/small distriction is based on participants at the beginning of the year.

I would think that this is a small plan for the 2004 5500.

The major question is whether an audit is required. I would think NO.

Comments?

What documentation is necessary for a loan that is to be used for the purchase of a principal residence w/a repayment period of 15 years? Would a signed statement from the applicant be sufficient?

Thanks!

When is the deadline for making matching contributions? Thanks

My husband was divorced 28 years ago and the domestic relations order stated that his former wife would receive survivor benefits. However, a QDRO was never drafted or filed with the court. My husband and I married five years ago. My husband is vested and will retire in approximately five years. Do I have any rights to the survivorship benefits? (The pension is a defined benefit.) Also, is there a statute of limitations for filing a QDRO?

Controlled group entity maintains a "mega-wrap" health plan document that covers group health, dental, life insurance, and short and long term disability.

Not all participants are enrolled in each component of the mega-wrap plan. Thus, 500 are enrolled in the life insurance component, 325 in group health, 400 in dental, etc.

What is the total participant count for the beginning and end of the plan year, for Form 5500 purposes?

Do we use the largest number (life insurance) and file an attachment to the Form 5500 showing how many participants are covered under each component of the plan?

Is there an expriation year for the small business 401k tax credit?

A participant is getting divorced. They are amicable and are using a mediator. They are splitting everything and are each keeping their own retirement plans.

The participant is keeping the home and will pay the exspouse the equity. The participant was wondering if they could use their 401(k) to pay this amount?

Would this count as a hardship - payment towards principal home? - I wouldn't recommend this due to taxes, penalties etc... But he wanted the option.

A loan is available to him - in this case may he exceed the 5 year payback limit?

Could he get a QDRO to pay the exspouse out of the 401(k) and use that to reduce the equity owed to her on the house?

He is just looking for options. Thanks!

I'm terminating a plan, they have never filed for a determination letter before, does an opinion letter act as a determination letter?

Client wants to purchase an annuity to provide the payment. Would this be considered to be a payment "on behalf of the restricted employee" and therefore not allowed?

I have a thrift plan for union members of a board of education. Currently it requires after-tax contributions and has a vested match. It is on a profit-sharing prototype. They want to add a 414(h) pick-up of 5% mandatory contributions and change the after-tax to voluntary. An "authority" tells me this can not be accomplished on the prototype and requires an individually designed document. I have reviewed past posts and am not sure about this. Does the document need to specify 414(h) pick-up? What needs to be included in the document? I am totally confused by the whole "pick-up" idea. (So confused, I don't know if this post should be under 401(k) plans). Any help or resources would be appreciated.

Thank you!

There was a brief article on this subject in BenefitsLink today:

http://oppenheimer.com/news/detail.asp?id=631

This was interesting, as I hadn't realized that this had changed for "most situations." Does anyone know what the exceptions would be - in other words, in what situations would this outcome/relief NOT be true?

I've seen from a couple of sources that IRS is planing on issuing revised Employee Plans Compliance Resolution System materials later this month.

One of the big changes is that employers will be required to contribute only 50% (rather than the current 100%) of average pre-tax deferrals for employees who were improperly excluded from participation.

I'm currently in settlement negotiations for an employee who was improperly denied participation in an elective deferral plan for about five years. We've based our settlement position on the current IRS EPCRS requirement that the employer contribute 100% of average deferrals. If the new EPCRS will cut that contribution in half, I'm concerned our settlement also will be halved.

Any thoughts on how I should proceed? The material when it comes out might address the situation, but I don't know if it's safe to wait that long if it ends up being unfavorable to the client. Our backup plan was to involve the DOL if a reasonable settlement couldn't be reached, assuming they'd recommend a correction similar to EPCRS. I don't think we can be too sure of our initial settlement calculations now.

what are the guidlines for being considered a Highly comp and or a Key employee for a 401k plan

are the guidlines different for 125 plans and 401k plans when it comes to who is being considered as being Highly Comp and or a Key employee?

Plan is terminating in 2005. Therefore, there will be 2005 SH contribution owed to everyone eligible. How does this get paid?? Do they have to fund it before the participants take their distribution, or can they just fund it by the time their corporate taxes are due 9/15/06 and cut checks directly to the individuals since their accounts would already be distributed from the plan?

I have no idea how to handle this?

What is a "reasonable" fee to charge a non-active participant under the automatic rollover rules?

Is $100/year reasonable?

Just a the question posed - How long does a company need to keep copies of their Form 5500? Thanks!

Although it is a hot topic on another board, I have

seen no mention here regarding the new LM-30 filing

requirements. The LM-30 falls under a set of

labor laws but it will directly affect Taft-Hartley plans. If

you deal with these groups you need to get up to

speed. The Office of Labor Management Standards

website is a good place to start.

www.dol.gov/esa