oldman

Can a safe harbor plan amend the plan mid year to add a 59-1/2 withdrawal feature. I believe changes can only be made as of the first day of the next plan year. The exception, as noted in IRS announcement 2007-59, woudl be to add a Roth feature or hardship withdrawal.

Thanks for the clarification on the plan-to-plan transfer being exempt form 415. Would it be correct to say that the DROP contribution into the DC plan would be subject to 415

I have a similar situation. The DROP program provides that persons electing to participate in the DROP also elect the annuity withdrawal option from the defined benefit plan, the annuity funds will be deposited directly into the person's DROP account. How can a person who has been taken an annuity distribution transfer funds into the DROP plan? Is not the defined benefit feature of an accrued benefit a protected benefit under IRC §411(d)(6), cannot be transferred into a defined contribution plan, unless the transaction is an elective transfer of a lump sum or a distributable event or a rollover transaction, and such transfers would have to be provided under the terms fo the defined benefit plan? The Drop program ,establsihed through City ordinance, direct the board of trustees to pay the monthly retiremetn benefit to a board-approved defined contribution retirement plan. Would not these contributions be subject to IRS Section 415© annual additions limits?

A governmental 457(b) plan covers only full-time employees. A part-time employee has contributed to the plan since 2008. To remedy this operation failure, can the plan distribute the elective deferrals plus earnings back to the employee? In addition, is the plan sponsor responsible for covering any loss on the contributions made to the plan?

Are governmental money purchase plans required to offer annuities as a form of distribution?

Can a municipality require as as a condition of employement that employees must contribute $25 permonth to a governmental 457(b) plan? The employer in turn will contribute $150 on behalf of each participant.

If a 457(b) plan wishes to terminate in 2010, must the plan document first be amended for PPA, HEART, and WRERA prior to distriubtion of plan assets?

Pardon the misprint. The question is how to handle the excess of $1,257?

An ERISA 403(b) plan provides that the employer, at its discretion, may make a nonelective contribution equal to a percentage of compensation, determined by the employer, for the payroll period, not to exceed $2,000. This nonelective contribution is subject to a 100% immediate vesting schedule. For 2009, one participant received total employer contributions of $3,257. Should the excess amount of $3,257 and associated earnings be taken out of the participant's account and used as a credit towards future contributions? If there is a loss associated with the excess amount, would the employer be responsible for making whole the amount?

A 403(b)(7) plan has employer matching and employer nonelective contributions in addition to elective deferral contributions. The plan doesn't permit age 59-1/2 and hardship withdrawals. The plan is transferrring to a 403(b)(1) annuity contract and would like to allow 59-1/2 withdrawal from all accounts and hardeship distributions of elective deferral contributions. Can the plan add the in-service distribution provisions going forward under the annuity contract?

Can a tax-exempt 457 plan add a matching contribution feature?