BG5150

Plan allows for 59 1/2 withdrawal but only: • the portion of your account being withdrawn has accumulated in the Plan for at least two (2) years What does that mean? Up to the account balance two years ago? Or everything now minus any contributions in the past 24 months? For example, my account is worth $10,000 now but I added $1,500 in contribs in the past 2 years. Two years ago, the account was worth $7,900. how much can I take? $8,500 or $7,900?

There's a question on the 5500-SF: Has the plan failed to provide any benefit when due under the plan? If a plan did not process the mandatory cashout, do we answer yes? The 5500-SF instructions only reference RMDs. But does it include other distributions? Like the cashouts? Or when someone requests a distribution but it languishes for some reason.

And the corollary: What if I initially put 50% in A and it goes down to 48% the next day. does the system automatically top it off for the other funds?

What happens when through daily gains and losses pushes the investment over the threshold? Say my plan restricts me to 50% of my account to fund A and no limit for the others. My first deposit is $1000, 50% to fund A and 25% each to funds B and C. So: A: 500 B: 250 and 😄 250 Then tomorrow, my account looks like this: A: 505 B: 245 😄 245 Now fund A has more than 50%. Do some of the asset in fund A have to be automatically reallocated? if so how?

i believe so

The participant ostensibly paid tax on the $40 (I'm guessing there was no withholding <$200). Are you suggesting the r/k forfeit the funds the participant paid taxes on?

Is there nondiscrimination testing on the non-elective?

I think in some European countries they would call it 4 billions.

Thanks, all

I'm getting conflicting info on how discretionary the Enhanced Catch-ups for those age 60-83 is. The Catch-up provision is already a discretionary provision in 401(k) and 403(b) plans. And I understand the new enhanced catch-up rules (super catch-up?) are discretionary too. But to what extent? Can a plan have "regular" catch-ups but not the enhanced c/u? Does the plan sponsor have discretion on both c/u's or just the regular one?

I would think that absent a lawsuit where the plan administrator would have to provide documents under discovery, this ex-participant is out of luck. And what documents fall under that 'disclosure' rule? I would think simply SPD (and SMMs), SAR and any fee disclosures while they were a participant.

Check your plan document first.

Before this plan came to us, there was a partial plan termination. Many of the accounts were distributed, but not all. Those that remained just were given accelerated vesting. Do the accounts of participants involved in a partial plan term HAVE to be distributed? Or can they stay in the plan?

Adding any contribution other than the SH contributions remove the Top Heavy protections. @metsfan026 is this new group new employees? Or established employees who weren't eligible for the plan to begin with? If they are brand new employees, unless they are owners or family members of owners, they probably won't be HCEs. So a PS might be the way to go.

Lo- Lo- Lo- Lo- Loooolaaa!