Coleboy1

Plan excludes per diem employees. A per diem employee who used to be a regular employee and was eligible to contribute wants to roll money over into the plan. Is she allowed to roll money into the plan since she is technically no longer an eligible employee? Thank you!

I might be dating myself but it seems when I first started out there was no hours requirement for anything less than a year of service but my memory could be failing me!

I'm not sure of the reasoning for this request. My boss recommended 6 months and 500 hours though I'm not sure if that is right for this client. There are a lot of employees. Does the 6 months mean the first 6 months or is a rolling 6 months. The plan document does have the fail safe language of 1000 hours in the first year. Also, the ADP test is barely passing right now so I'm worried about the affect of this potentially new eligibility will have on it.

Client wants to amend the plan to 6 months and 1000 hours for eligibility. Currently the plan has 1 year and 1000 hours. Can this be done? If so, are there any ramifications to having this? I have had 6 month eligibility before but not with an hours requirement. Thank you!

How should this be reflected in the participant's account under the 2nd plan. As a rollover?

These plans were in place prior to me being employed with the TPA firm. The 2nd plan does state that it excludes employees who work at the first location. However, this employee presumably moved their residence and are now employed at the 2nd location. If the participant stayed in the first plan, wouldn't it make it more difficult to keep track of who is in what plan when doing the year-end testing? That is, you have separate census's from each location but the census of one location may include employees who are participating in the other plan.

Client has 2 locations with separate plans to avoid being a large plan filer. One participant has moved from one location to another. Should her account balance be moved to the new location as well? If so, would this be treated as a regular rollover distribution where the employee has to complete distribution paperwork and a 1099R is generated? Or can it just automatically be moved? The amount in question is over 100K. Thank you!

Simple question that I couldn't find a straight answer on. Does the IRS limit the number of hardship distributions that a person can take in a plan year? Can the plan itself limit the number that can be taken? Thank you!

Is there something in writing that I can give as back up to my boss and the owner stating this about the 3% SHNEC? Reasons behind it,etc.

Yes, definitely was a non-elective. She maxed out at the $26K.

Thank you for the explanation!

Just so I get this right. The 3% SHNEC cannot be used as the base for the PS allocation?

She received her 3% SHNEC plus an additional 1.5% non- elective

I am working on a small 401(k) plan. This plan has a 3% SHNEC. The PS allocation is Integrated. In reviewing the contributions, I see that 3% SHNEC was made for everyone but I'm also seeing a non-elective contribution made only to the HCE Owner. I am not sure why she would get a non-elective and no one else. What am I missing or not seeing?

Is there anything new regarding the participants on the 5500?

I have a large company whose 401k excludes per diem employees. They have a 1 year, age 21 and 1000 hours requirement for eligibility. Some of these per diem employees have met that eligibility requirement but are still per diem. Are they still excluded from the plan? Also, there are a few employees who were eligible for the plan then later on became per diem employees. Do they lose their eligibility to contribute?

I am currently working on a Sched. H in which my predecessor had reported a figure in Part 1 Line 10 for the past few years. The accounts in question are really pooled separate accounts. My predecessor included a Sched. A that was blank for each of the prior years. Trust and Insurance were also checked off for the funding arrangement but no assets are with an insurance company. My question is if I "move" the value that shown at the beginning of the year to where it should be ( registered investment accounts), will that raise a red flag? If I leave it where it was and make the ending balance zero, FTW is looking for a Sched. A still. The ending balances would still be the same. Or do the prior years need to be amended? Any help would be appreciated.

I haven't worked on a 403(b) plan in about 20 years. This 403(b) plan failed its ACP test. Do the match refunds go back to the plan as forfeitures or do they get refunded to the participants?

Hi, A client failed the ACP Test. When calculating the refunds, the system is also calculating match forfeiture refunds as well. All of the people receiving refunds are 100% vested. Can someone explain to me what is happening?