commishvp

The client is acquired in a stock acquisition. They have determined they want to proceed with a formal plan termination. They would like to be able to distribute the account balances of the employees who are not retaining their employment than distribute the remaining balances after the favorable letter of determination is received. Any creative solutions?

The latest a PS plan with no 401(k) option can add the safe harbor provison is October 1st. The first year notice can be distributed on the effective date of the provision or OCtober 1st in this case.

A 401(k) plan wants to add safe harbor match for 2006. The current eligibility for deferrals is 3 months, they would like to have the eligibility at 1 year for the safe harbor match. Transamerica is telling the client that the entire population of employees must be ACP tested if there are different eligibility requirements for deferrals and safe harbor. My thoughts are you would ADP/ACP test the otherwise excludable group who does not receive the safe harbor match. This would always pass since no HCE's would be in the OE group. Top heavy will never be an issue. Thoughts?

Corporation X purchases corporation Y in May 2005. X has a 401(k) plan and Y has no qualified retirement plan. It is my understanding that there is a transition period which the controlled group is deemed to pas coverage until the plan year starting January 1, 2007. Under the Corbel document Y is excluded until they are an adopting employer. It is my understanding this would exclude Y's employees from the ADP testing for 2006. In 2007 if Y adopts a separate plan would X and Y both have to pass the ADP test separately? Can it be aggregated or does it have to be aggregated? Any advice would be appreciated. Thanks!

A 50+ year old participant defers $12,000 into the plan (limited because test would fail if greater amount deposited). His goal is to reach the total contribution of $46,000. The ADP test passes so none of the monies are reclassified as catch-up via the failed ADP test method. If he funds a $34,000 profit sharing contribution and "forces" the 415 failure, which would reclassify $4,000 as catch-up. Is this allowable? Is it a gray are? Thanks!!

I have a client that is a C-Corp and the only 2 employees are a father and son. The father is 100% owner. Can they file an EZ do to the attribution rules?