BG5150

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.

The plan document will tell you if rollovers are disregarded for cashouts.

Eligibility for the plan should have nothing to do with the deferral election (or lack thereof) of the employee. In many 401(k) plans, if you were once eligible, you become immediately eligible again upon rehire. The document WILL address that.

Plus, what happens in the new DRO (it's not, nor ever was a QDRO) now includes something about 401(k)? Unlikely, but you never know.

Can you share the correspondence? Even privately? I interested in seeing it, for a couple reasons: 1) I'm curious, 2) to help prepare against something like this happening to my company. If shared privately, I will not further share it other than to the powers that be over here.

I thought they were going to tell everyone soon, and then start collecting the choices in the window. I guess it wasn't clear. If people are only informed on 2/9, then a 3/2 date will not work. Especially if they have been considering it longer than that.

Maybe a disgruntled ex-employee?

So, with a 2/27 date, it's over a month and a half. And you are NOT going to do the exchanges on 3/1. That's a Sunday.

We have someone who took a hardship in early October. He stopped his deferrals, but a deduction did come through for his year-end bonus. What is the correction? Someone here mentioned to just extend the suspension period one month. She said it was discussed (perhaps?) at the ASPPA EPCRS session. Any specific guidance out there on this?

If it wasn't supposed to be in there in the first place, could you use it for an expense?

If the plan document doesn't specifically exclude HCEs from either the SH or a PS, then they get it just like anyone else. An HCEs cap on PS will be determined by 415 and any non-discrimination testing that is applicable.

In reality, who ever defers 100%? Except maybe a child or spouse of an owner.

From: 1.401-1(b)(1)(ii) The plan must provide a definite predetermined formula for allocating the contributions made to the plan among the participants and for distributing the funds accumulated under the plan after a fixed number of years, the attainment of a stated age, OR upon the prior occurrence of some event such as layoff, illness, disability, retirement, death, or severance of employment. I take the "or" as just needing a specific age. In the absence of a stated age, you'd need a seasoning clause, or restrict it to an event.

This doesn't add up. if the largest amount is $0.49, the the most it could be over 5 occurrences is $2.45.

$500 Loss date: 12/1/14 Recovery date: 12/10/14 Final Date: 12/10/14 Interest: $0.37 Three months of similar late weekly deposits, total is over $6,000, (total interest about $5) but each individual interest amount rounds to zero.

Is the bounty worth having to find new employment? I mean, with only a few employees, the owner probably could narrow it down pretty quickly.

I don't think I ever spoke to anyone else about the vested percentage in my 401(k) or DB plans.