ombskid

One owner - 3 NHCE's. One asking for a loan. 2 of 3 NHCE's make over 100k. Not sure how BRF would be tested

Does the administator of a ps plan have total discretion in the maximum length of a participant loan. Could the only loan in a small plan be limited to 2 years without any specific criteria?

Can a BOY val reflect a freeze of accruals that is made in June of the same year. TNC would equal zero.

Thanks Can he withdraw his 2013 SEP contribution, then put the max in a 401k profit sharing plan?

Business owner over 50 has a SEP. He has contributed a few thousand to the SEP already for 2013. He wants to start a 401(k) for 2013 to get the additional catchup deduction. Is the limit on the combined plans the same as if he only had the 401(k) profit sharing?

There are also currently employed participants who chose an annuity.

Sponsor wants to pay out monthly benefits for 3-5 years in hopes that annuity rates come down (interest rates go up). Annuity quiotes came in 60% higher than lump sums.

Sponsor terminating a db plan wants to spin off participants who chose a monthly benefit (vs most who chose lump sum) into new plan. Old plan was already frozen, this one would have no new benefits. Is minimum participation requirement met when none accrues an additional benefit?

DB plan starts termination process. 8 out of 30 participants choose annuity instead of lump sum. Lump sums are paid out. When annuity information and quotes are assembled, the cost is up to double the lump sums. Can the termination be amended to only pay out the lump sums, and the sponsor wait 3 to 5 years to see if interst rates change and therefore cost of annuities comes down?

Yes, always a good idea to check the document, which in this case calls for distribution of anything under $1000. Thanks all

If a former participant has a small (under $200) balance, can the sponsor send them a check for the balance? This is after several requests to fill out distribution forms have been ignored.

Thanks Plan does have actuarial equivalence - I was making sure there was no mandatory override like the 415 rates

For someone who is nowhere near 415, there is no mandatory interest rate or mortality table for converting benefits?

Is there a mandatory interest and mortality rate when converting from one form of benefit to another i.e. convert a plan's normal form life with 10 yrs guaranteed to life only?

When a DB plan terminates, participants are offerred lump sum, which has always been an option. If they choose another form as allowed in the plan, i.e. J&S or Life with 10 yrs guaranteed, and are still employed, do they have to have the lump sum option still available to them in the future? Any difference if they have terminated employment? Or are working past NRD?

Two questions I've been asked on a topic I rarely get involved in: In either a SIMPLE IRA or SIMPLE 401k, are employer contributions (either match or ER nonelective) required when no HCE's (including owners) are deferring? If the plan sponsor is a sole proprietor or partner in an LLC (i.e. income is not w-2) is there any restriction on their comp different from a qualified plan? Thanks

And the replies

Thanks for the repies. I also think they have an employee relations problem but not a plan problem. Employees will be notified that the match will be suspended.

I was under the impression that with a discretionary match it could be discontinued anytime. Even safe harbor matches can now be discontinued during the year - reverting back to adp testing. I was mostly looking for a minimum notice time period if there is one.

Plan document has a discretionary match. Company has used the same formula for several years, and matched each pay period. Is there a fixed period notice requirement to suspend the match?

But in this case we are saying there is no requirement, and they are asking where does it say that.

Client wishes to terminate without filing for a LOD Someone asks "where does it say you don't have to file for a LOD"? Anybody have a simple, concise answer to just that question?

Qualified Charitable Distributions are available ONLY from IRA's, not qualified plans. Correct?

I'm not sure what you mean by cumulative; but the plan limits the top heavy benefit to 20%, so no additional benefits need to accrue to this person because he already had accrued considerably more that 20% of pay. Thanks. Too much DC work lately had me forgetting the 20% accrued benefit as 2% x up to 10 years (that's probably what you meant by cumulative)

If a participant reaches normal retirement age and retires, takes a lump sum distribution, then decides to work part time (approx 10k annual in this case) would the employer be required to provide this employee with a top heavy minimum benefit for the part time work? Does it matter if this person was a HCE when employed full time?