Randy Watson

That's perfect. Thanks!

Our participant loan policy has a cure period for missed payments. Under the cure period, missed payments must be made by the end of the calendar quarter following the calendar quarter in which the payment was missed. This cure period is in compliance with the participant loan regulations (1.72(p)-1,Q&A10). However, what happens when the application of this cure period extends the due date of the missed payment beyond the end of the original amortization period? For example, a participant fails to make his last payment. The cure period would enable that participant to make up the payment long after the 5-year period required by Code Section 72(p)(2)©. Does anyone have any thoughts on this or know of any authority that addresses this issue? Thank you.

Can someone tell me whether an employer can make matching contributions from an employee's compensation? Here are the facts: Employees are permitted to make elective deferrals under the plan. There is a discretionary matching contribution and the source of the match is the employees' compensation (pre tax). The employees earn a salary and a % of gross revenues as their compensation. If the match is not made, the employer simply pays those amounts to the employee as compensation. This is how the employer was operating before we got involved, so we are not sure what authority they are relying on. Would this situation change at all if the employees were owners of a partnership?

Employees receive commission upon the sale of the employer's product. The commission is considered compensation for purposes of our 401(k) plan and deferrals are withheld from these amounts when they are paid. Sometimes employees terminate employment prior to the payment of the commission. So, my question is do we withhold deferrals from commission checks paid after termination of employment? These individuals are no longer employees when the amounts are paid, so how can we contribute deferrals to the plan for non-employees? Alternatively, the commissions are technically earned while employed. Please help.