Lori H

Ok, It's applied uniformly so I think it will be ok too. Thanks for your replies

The plan does not require a minimum deferral. I'm just looking for something in the AA that specifies the plan can opt to a % election rather than a $ amount and that section(6-3) of the AA was the closest I could come to.

The plan sponsor is asking if they can require participants to elect a % of pay rather than a $ amount because according to them it makes the calculation of the SH Match easier.

Below is from the A.A. however, the Salary Deferral Election Form allows the participant to defer a % or $ amount. Of course the A.A. would overrule a form. 6A-3 MINIMUM DEFERRAL RATE. Unless designated otherwise under this AA §6A-3, no minimum deferral requirement applies under the Plan. Alternatively, a Participant must defer at least the following amount in order to make Salary Deferrals under the Plan.  (a) % of Plan Compensation for a payroll period.  (b) $ for a payroll period.

Thank you.

A plan can not be amended to allow participants to elect only a percentage of pay as their deferral election, but can a plan sponsor encourage participants to elect a percentage rather than a flat dollar amount when they enroll or change?

Yes no maybe?

the wife is not deferring the max. 2015 they made the same salary and he deferred $5200 and she $2600

a 66 year old owner of a C-corp recently took SS benefits. He is being advised by his CPA that he should cease taking income from the company due to the cost of FICA. His wife is employed at the company and she inquired as to whether he could defer on 1099-M income from rent he receives. They have a SIMPLE 401(k) and he has never deferred the full amount. I suggested maybe a minimal income close to the amount he would like to defer which is generally $100 a check.

Inservice is allowed. Thank you kindly

A 61 year old active participant that has a loan balance wants to rollover her balance to her IRA and continue to pay back on her loan. Is this permitted?

small SH 401(k) while transitioning to new owner failed to withhold 401(k) from participants checks in Sept. Using SCP should the sponsor fund a QNEC equal to 50% of what the deferral would have been as well as the accompanying SH match?

PSP is terminating. However, the plan sponsor did not withhold 20% from distributions. There are residual earnings that are left to be distributed but not enough to cover the taxes. Do you instruct the participants to cut a check to the plan sponsor for the taxes or are do they report it on their personal 2016 tax return?

Can you amend the plan retroactively, say for 6 weeks, to add a new trustee and remove the old one? Small SH 401(k) had a change in ownership and new trustee took over fiduciary responsibilities technically before the sale of the business was finalized. The retroactive amendment would be back dated to the date of the sale of the business.

Thank you. yes regular ACA

deferral only plan wants to add an auto enrollment feature. Is the pre-PPA option only allowed to be amended prior to the beginning of the plan year?

a large plan is being merged. The auditors opinion states the plan is terminating in a few notes on the audit. It also does mention the plan is terminating due to merger. Would referencing a termination be technically ok from an IRS/DOL standpoint? Also on the Schedule H question 5A ask has a resolution to terminate the plan been adopted... Would the plan sponsor answer this as "no" and then complete 5B with the information that the plan is being merged with? Thanks

When is consent of spouse required for distributions?

Is the correction procedure the same for rehires who were not allowed to defer upon rehire date as they are for employees who became participants and were not given the opportunity to defer? I looked on the IRS website and did not see anything specific to rehires.

The new company wants to freeze the acquired plan, then merge it and file for determination on termination. They have now realized it's a controlled group and terminating is not an option.

Ok, now the plan is being merged into the parent company as they have determined it is a controlled group situation. So Plan B will be frozen for a period of time until all the proverbial ducks are in a row. The new company keeps referring to allowing participants to make loan payments via "coupon book or ach". I have never heard of this option. Have you?

Thank you very much EBEcathy. this is very helpful. The custodian of the current plan didn't really recommend "rolling over" loans to the new plan as it's a manual process.

Plan B is in fact terminating and the sponsor of Plan A is requesting a DL for Termination. Plan B's plan doc is a pre approved plan. Are you saying that Plan B's loan policy info should be amended, if necessary, to incorporate in kind distribution of loans?

If Plan B is merging with Plan A due to a purchase and Plan B has loans, Plan A only needs to allow for rollovers and loans to accomplish this correct? Plan B, which is terminating, does not need to amend it's plan.

profit sharing only. there will be no new participants. only 4 in the plan.