PensionNewbee

I've seen the thread on this message board regarding the ADP/ACP tests and HCEs with no comp and no hours What do you do if you have an HCE/Owner who took no comp for cash flow reasons but worked over 1,000 hours??? The owner of the company took no compensation for the year because of cash flow issues. $0 comp/$0 deferrals isn't equal to 100% IMHO. The goal is to include the owner as a 0 deferral and sole member of the HCE group by invoking the top paid group. Can this be done? Anyone?

What do you do if you have an HCE/Owner who took no comp for cash flow reasons but worked over 1,000 hours???

what if the snap on amendment didn't include the final RMD amendments? The document provider we use didn't have that piece in the amendment when we did the snap on for this client. Now what?

when were/are these required to be done?

Gee, Kirk, I'm sorry I didn't check with you before I posted a response. I thought I phrased it as a question, not an absolute hard truth. Pax, thanks for seeing my response for what it was.

would it not be logical to assume that because the divorce has been invalidated, the QDRO suffers the same fate?

that seems to work! Thanks!

How do I code this in Relius?

Assuming that contributions are based on hours worked, if it can be proven that this employee didn't work the hours he claimed to have worked, it should follow that the contribution made to the plan on that employee's behalf could be forfeited - held in suspense for use to reduce future contributions, or reallocated among remaining participants, depending on the terms of the plan. Returning the contribution to the employer is a slightly more tricky issue. Once the assets have passed from the company to the plan, it's quite difficult to get the assets out of the plan.

Not that I am a doubting Thomas, but do you have anything more substantial than an opinion? Is there a cite?

a client adopted the 3% safe harbor in 2002. For 2003, the client made the 3% contribution, but the safe harbor notice referenced the safe harbor match. The intent of the client for 2003 was to make the 3% contribution. Are they stuck with the match formula because that's what the notice said or can they allocate the 3% safe harbor?

well, that sucks, because no 2 plans are alike. I was hoping for an easier way to input the data instead of paging thorugh screen after screen. rats.

Is it possible to create a DER to enter the plan level information? I'm using version 8.3, and looking for legitimate shortcuts where ever I can find them!

there are NO union employees. Just salaried (exempt) and hourly (non-exempt). The exempt employees are one group, the non-exempt are the other group. The exempt group has the HCEs. The non-exempt has no HCEs. The exempt group is getting a different benefit than the non-exempt group.

neither group is union. they want to divide along exempt and non-exempt status.

It's not the driving motivation - what we're trying to do is set up a plan with different benefits for different groups, and find a way for it to pass testing- coverage, etc.

I've got a plan with an exempt group and a non-exempt group. They want one plan but have different benefit levels in mind for each group. there are about 85 exempt, 20 of which are HCEs. the other group has about 900 people. (non-union). They want to give the nonexempt a 2% profit sharing contribution, let them defer and not match. The exempt get to defer and get a match but no PS. Safe harbor isn't an option?

Can a non-top-heavy plan have a safe harbor non-elective contribution of less than 3%??

thanks for your "help" people. I'm still grinning. At the risk of adding more fodder to the fire, here's what I wrote: Although the Plan was established with the intention and expectation that contributions would be made indefinitely, nevertheless, the Board of Directors has determined that the Employer Match will be suspended as of October 1, 2003. It is our hope that this suspension is temporary, however, (Client Name) reserves the right to make the suspension permanent.

as I said, it's totally discretionary, and made quarterly. I think it is determined quarterly as well. Any sample language you can think of?

I have a client who makes its matching contribution quarterly. They haven't had a good 4th quarter and want to not make a 4th quarter match. The match is discretionary, but they feel obligated to notify participants that no match will be made. Is there any sample language out there? Thanks!

I have a client with a plan that has been carrying a balance for a deceased participant for some 15 years. The beneficiary form has been lost or destroyed, and the SSN is not valid on the deceased individual. Good faith efforts have been made to find the beneficiary. Client wants to forfeit the money to remaining participants. What would you all do?

can somebody please point me in the right direction - I need to find a concise description of what investments are permitted in DB plans. Thanks!

An employee who has "an old" 403(b) account wants to roll the account into his current employer's 401(k) plan. This can now be done, correct?

Can a defined benefit plan invest in real estate? A sole owner of a company has a defined benefit plan. He is the trustee. He wants to invest in pre-construction homes - buy them as they are being built, then turn around and sell them when completed. This is to be done, of course, in the name of the plan. About 10-20% of the plan's assets would be used to do this. Does this create a problem under ERISA, DOL, or PT rules?