BG5150

Think of it this way. If I have a $50,000 vested balance today and take a $25,000 loan, that leaves me with 50% of my account, $25,000. What if next week the market dips and I'm left with $23,500? My loan is now worth more than 50% of my account (including the loan, of course). Would you see that as a problem? There's no difference if the account goes down by value or distribution.

If it came out of the paycheck and not remitted to the trust, you have late deposits. There's nothing in the regs (that I see) that would exclude an HCE or even owner from the rules.

Did the owner get paychecks? Were the amounts actually withheld from a paycheck? If so, then I think you have to look at DOL Fiduciary breach rules. The company will owe earnings to the owner plus maybe a penalty tax.

I agree. Discretionary match (for the purposes of ACP Safe Harbor) is limited to BOTH No match on deferrals greater than 6% of comp AND The disc. match can total no more than 4% of comp.

Rule says later of 2 1/2 months after term or Plan Year end.

I never get this right. Partic termed 12/27/2025. Got commission check 2/12/2026. Plan includes post severance. So do I include the comp in '25 or '26?

I have a question on this: the formulae uses "average annual compensation" (per ERISApedia). Do we just use plan year comp for a DC plan? Often I have no idea what average comp has been if this is our first or second (or even third) year doing the calcs And where do I get the "permitted disparity rate"?

You cannot match on deferrals greater than 6%. There is nothing to say what percentage of that is acceptable. So 150% of that first 6% of pay is ok.

Can you do 150% of deferrals on 6% of pay to get to 9%? I think you can.

I think the ADP SH is anything >= 3%. ACP SH allows only a % up to 6% of pay. I think you could do like 150% of deferrals up to 6% of pay. But you cannot match on any deferrals over 6%. The 4% limit of comp is limited to the discretionary match. I don' think it's applied to SHM.

Did you ask the authors of your plan document? (Relius? Datair? FTW? Individually designed?)

@austin3515 Total brain fart! The APR is based on retirement age, not actual age. My formula was trying to pull in the wrong cell in my spreadsheet. Sometimes it helps to say this stuff put loud and have others tell me just how wrong I am rather than beat my head over it for 3 days until I figure out what I did wrong.

@austin3515 is there a reason you stopped at age 55? Do you not need to calculate stuff for the younger folks?

Thanks so much! This is perfect. But I have another question. NRA in this plan is 59.5. Do I use the APR for 59 or 60? (I'm gonna try to back into it to see which one matches my software, but I figured I'd ask.

Combination of all three. But like RBG said, check your service agreement. In most of the places I've worked we would not prepare the 5500 (or publish it for filing at least) until the work was done and paid for. ( We usually bill ahead for the next year)