Lori H

ok, thanks. I have no problem showing the plan at $0.00 at 12/31 just didn't want that to come back and possibly haunt the sponsor.

A plan sponsor of a calendar year plan is insisting on 2014 being the final plan year and wants the 5500 to reflect that. However, all the plan assets were not distributed until the second week of the current plan year. I am of the opinion this would be a red flag since participants would be receiving 2015 1099's on a plan that did not file a 2015 Form 5500. The sponsor is just not wanting to pay another year of admin fees.

Forgive me if this has been a topic before. If the adoption agreement election is "Wages, tips and other compensation on Form W-2" and Box 1 on the W-2 is just that "Wages, tips and other compensation", then if that box excludes deferrals, should you not always elect to "include salary deferrals" as an adjustment to compensation? Example, if you earn $10,000 and elect to defer 10%, your Box 1 would be $9000. However, for plan purposes you would actually defer more than 10%.

The question was not about eligibility. It was about entry.

Section 3.5 of the document does not address a rehire not electing to participant. We were leaning towards the next entry date. Thanks for your response.

A former participant is rehired and does not elect to join the plan on their date of rehire. Do they wait until the next entry date to enter the plan and actively participate?

Seminars? Literature? Books? Thanks for any ideas.

No p.s. only TH and yes I am thinking that way too. Can't be employed if they are a goner.

Sure, I am aware of that, but it just seems odd that the code nor the document does not address TH allocation to the deceased.

A small 403b wants to terminate. It's custodian of the contracts (Mutual of America) is saying they can not terminate the plan until the end of the plan year. I don't believe this to be the case. The sponsor is trying to avoid having assets after the close of the plan year and wrap things up before 12/31

It's an Ohio National DC document and it makes no mention of an allocation to D,D or R. However, the A.A. states that a P.S. allocation will be made to those who D,D,R during the year.

Have to be employed on the last day of the plan year. I can't find anything in 416 that states the deceased gets TH.

If a plan is Top Heavy but satisfies the Top Heavy requirement by being a Safe Harbor 401(k) and the plan already has ROTH option in it, what benefit if any, would there in having an After Tax deferral option?

They want to change the Profit Sharing formula and add a hardship provision effective 1/1/14. Was hoping to accomplish this during PPA restatement.

Why not just defer ROTH 401(k)? It's after tax.

Thanks

a plan has quarterly entry. if a participant enters the plan on say Oct 1. which payroll should they commence deferring? for example if the payroll runs weekly 9/28-10/4 would they enter that pay period or the first full payroll following the entry date 10/5-10/12?

I'd like to add to this inquiry.....if someone is eligible but excluded because they do not work the 20 hours per week are they included in the ACP test?

yes. thank you for clarification.

A plan states that you are immediately eligible for deferring into a 403(b) unless you are in certain class of employees then you are excluded. It states "If you are a member of a class of employees identified below, you are not an eligible employee for all plan purposes" The employees who are excluded are 1)Nonresident aliens 2) employees who normally work less than 20 hours per week and 3) student employees. Would the universal availability rule apply here? I would think the word "all" would be the key word and that it would apply for matching eligibility, which is 24 months of service and age 21 Ultimately any employee regardless of hours worked should be eligible to defer, yes?

Have you ever come across any restrictions using the same prototype document for a plan that is being spun off from a multiple employer? The spin off will have it's own plan obviously, but using the same prototype sponsor. These are 401(k)'s. Would you check with the document provider to ensure there are no issues?

accrual

A plan sponsor was able to make a contribution totaling less than $500 under SCP in order to satisfy a missed deferral opportunity for deferrals not withheld from some OT paid to a few participants. The contribution included the missed match and a very small amount of earnings. NO 415 violations were discovered either. The missed deferral opportunity was discovered after the close of the plan year, but prior to filing the 5500. Should the contribution be included on the 5500 for the plan year it represents or the current plan year and can the whole contribution be deposited into the deferral account? It is a safe harbor matching plan and in some instances the missed deferral opportunity amounted to a few dollars or even less. Thanks

A participant in a 401(k) that has automatic enrollment was enrolled in the plan and subsequently opted out. The participant is now upset that the service provider has access to his personal info (address, SSN, etc). Opting out does not erase/delete the employee's personal information from the roll. Do you know where I can find information on this topic of protecting personally identifiable information? Is this a privacy issue? Has anyone had experience with this? The service provider will need this info to process distributions, 1099's, 8955's, etc when a distributable event occurs. Do participants have any recourse with privacy issues? Thanks

Thanks.