PensionNewbee

to send to HCEs telling them their deferrals are going to be limited to X% for the year in hopes of avoiding an ADP test failure for the prospective year? Does anyone have one they're willing to share?

geez, it's never simple is it? I can see why you avoid these questions like the plague.

Is it enough to be considered an affiliated service group if three entities, without being a controlled group, share the same address? One company falls under the definition of a service organization (consulting) the other is a PR or advertising company, and the third is a one person LLC? What questions should I ask to determine ASG status?

There is no attribution - as for affiliated service group - they don't share clients or resources, they don't exchange services, so I think that means they aren't an ASG. Is that correct?

owners are 25% owners - common interest is 15%. Can they have two annual additions limits?

two companies involved - there is common ownership between the companies, but they are NOT a controlled group. Each company wants its own plan. Can an owner of both companies participate in both plans, and, does the owner have separate 415 limits in each plan or, since the owners are more than 5% owners, are they constrained by one annual additions limit?

Tom, the owner makes 150K, the NHCE makes 50. what exactly does "imputed disparity" do for the cross tested testing?

yes, thank you for clarifying my question, exactly. I have a small plan - 2 people. One HCE. The objective is to give the NHCE 5% and the HCE 40K. This works if I use SSRA to test. The problem is that my plan document software does not have SSRA as an option for retirement age. If I don't use SSRA to test, the contribution to the NHCE goes up to 9%. RATS.

Can I test on SSRA and have a different NRA in the plan?

Not to be stupid, but, why?

husband owns 100% of company, but does not participate in the plan. He's not a w-2 employee. Wife participates in plan. Is she key?

Is the Trustee the one responsible for making the mechanics happen or is it supposed to be a life insurance agent?

from a mechanics standpoint, how is the actual transaction done? I assume (dangerouus, I realize) that there must be a change of ownership form and a check written, and then the cash equivalent is deposited in the participant's account. Is it that simple?

Two participants have life insurance policies in a profit sharing plan. The plan sponsor wants the participants to buyt he policies and maintain them outside the plan. How is this done? Is this even possible? Wouldn't this be a prohibited transaction? Premature distribution?

makes sense, I suppose.

so, am I correct in stating that an HCE who did not defer the maximum under the plan cannot have a portion of his deferral treated as a catch-up contribution to pass the ADP test? The test has to fail and the excess gets treated as a catch up?

a 401(k) plan has immediate entry. there is a participant who never has 1,000 hours in a plan year, yet he participates. Can I put him in the "otherwise excludable" group for ADP testing even though he's been employed for several years?

A participant borrowed 28,000 from her 401(k) plan, and after making 8 payments, wants to pay off the outstanding balance. How is this calculated?

ahh! Thank you, Tinman!

client won't go for that. No refunds, no QNEC. I do feel a bit caught between a rock and a hard place on this one.

as the sole owner, meaning 100%, he would be in the top paid group, wouldn't he? He worked full time, but took no salary. The question is, is he included in the test or not? Most posts say to exclude this person from the test. However, to exclude this person from the test means that there is one other HCE with comp and deferrals, and the plan fails the test. Any suggestions?

I know he's an HCE - it's my ineptitude in phrasing questions that led to the confusion. As an owner, he's in the top paid group, regarless. Sorry about that.

How do I code the specs in Relius to exclude service before age 18 for vesting? I can't seem to find it.

does it matter or change anything if the owner/hce had compensation in 2002? He would be in the top paid group then for 2003, wouldn't he?

actually, Blinkey, I posted it there but thought nobody would see it, so I posted it as a new question. ...