BG5150

Why not? Plan consists solely of owners.

There are a few of questions here: 1: how did the loan go into default? Usually, a loan will not default until the end of the quarter following the quarter in which the payments stopped. Usually. You were only out for 5 weeks, so there is no way you could have been a quarter behind. Check the plan's loan policy to see what the default schedule is. 2: what did they say the $308 check was for? Was it for payments you made after the loan defaulted? 3: did the plan administrator give you something in writing that the payment would go up and the reason for it?

QNEC?

You can still have a 12-month suspension. It's just that Safe Harbor Match plans MUST have the 6-month period (at most). I think.

I used to work with a plan document that said if you had a last day rule and if any contributions came in during the year, it was deemed the last day rule was waived for the year.

Is the entire account deferral? Or does the document limit hardships to deferrals only? (Defaulting $22k when he deferred $25k implies there were other sources in the account. Unless his investments did really well and he doubled his 401(k) account)

We have a DC plan that allowed terminated participants to take partial withdrawals (separate from installments). They may want to eliminate that, allowing for only installments and lump sums (and the QJSA already there). Can they? I thought you could eliminate all other forms of distribution if a lump sum was available.

Are teh service-spanning rules universal, or must it be explicitly stated in the plan document?

Any good, FREE material available for the EA-2F exam? I'm planning on getting either the ACTEX or ASM manual, but I wouldn't mind some additional, supplemental material.

RMD on 500,000 at 82 is about $30,000

But could you have a plan that allows ONLY Roth deferrals, not pre-tax?

Why is that, John?

The distribution form from the carrier has the part about 10% / zero / other tax withholdling.

402(f) Notices are for eligible rollover distributions only, right? So I would not have to send one with RMD paperwork?

Elevating? I learned a new pension word.

Could you have the amendment say that hardships from deferrals are only allowed on deposits after the amendment date? (You'd probably have to keep track of them separately, before and after).

I think this would only be relevant if the plan otherwise allows in-service withdrawals at age 59 1/2.

What is the vesting computation period in the plan document? Often, it is the plan year. So your periods for this person would be: 1-1-11 to 12-31-11 1-1-12 to 12-31-12, etc Or, if using elapsed time, you always use employment anniversaries?

What is "excess revenue"? Another way to say ERISA recapture account? I THOUGHT there were only two possible dispositions of the funds: pay expenses or reallocate to participant accounts.

Nope.

I know that new participants should get a QDIA Notice. Also, those who are already defaulted get one. What about eligible people who have no account balance? Do they get a Notice every year?

Print them out!

We have always suggested that if someone sends in extra loan payments to either: 1) Apply them to another outstanding loan, or 2) Send it back to the company to reimburse the participant In fact, we deal with a national carrier that does #2 routinely. In fact, they make the check payable to the participant. I have such a situation, but with another national carrier. They expressed their disagreement with the proposed correction (send back to the company) and believed the funds should stay in the trust to offset contribution, be reallocated or used to pay fees. How do you guys approach these?

Current value. Is this a DB plan? How can someone amass $100,000 and be only 20% vested?

The match is discretionary, so the ER can almost do whatever they want whenever. However, the match must be applied per the formula. I would also avoid having a match for the first half, two-thirds of the year and stop when the owner/HCEs have maxed out and cannot defer any more. No notice to EEs is needed. However, it may be good ER/EE relations to let them know.