BG5150

Of course he can. To the extent he has positive income from the LLC, he could possible defer and get match & profit sharing.

Way off topic, but what was participant invested in that they made less than 1% in 2012? Even weighted, it seems very low.

Situation: Man lives with his aunt. At the end of the month he must get out. Reason: unknown. Can he take a hardship for a down payment & 1 month's rent? Safe Harbor reasons.

Is there going to be a big reduction in the match formula? Is the ER expecting a lot of turnover in the next 10 months? Why not wait and do it for the full plan year and get all the protection and administration cost savings that SH affords the sponsor? All the old SH match is 100% anyway. All the ER would lose out on is the match over the remaining part of the year to the level that it mighn't be vested.

Did you ask the people who wrote the document?

A 401(k) plan is just a PSP with a 401(k) provision. Why can't you amend a "401(k) plan" to no longer offer deferrals. Mid-year of a safe harbor plan notwithstanding.

Unless you have records that go back to the mis-pricing, then I would just allocate it pro-rata on the original distribution amounts. If the plan is not terminated, you won't be able to force out someone if they get more than $5,000. Where has the $20,000 been sitting? You'll probably have to allocate earnings, too.

Could she put, like $1,000 bucks into the plan?

Is the last day of the year the only plan entry date?

If the plan uses the Safe Harbor reasons, I don't think the resources portion of the test applies. It's merely an immediate and heavy financial need. As long as there are no other distribution options in the plan, and a loan is not counter-productive (don't get me started on this piece of great legislation!), I think he would be good to go if: 1) the pool could be considered part of the principal residence; and 2) the "casualty" is deductible under sec. 165. As "backup" you may want something in writing from the participant, or the participant's tax adviser, that the event is indeed deductible. If it's not,t he argument ends there.

Maybe you should consult an ERISA attorney.

Closing balance - additions - fees - distribs - opening balance = earnings.

Are you the plan administrator?

Why doesn't the sponsor pay and get reimbursed by the broker?

This should also be the case if the plan allows for distribution of rollover amounts at any time. (And of course, if the participant has rollvoer funds...)

It has to do with HEART and participants leaving for active military duty. I think that if they are gone for more than 30 days, they can take a distribution from the plan as if they severed employment. Don't quote me on that. Just something probably half-remembered...

I thought the point of suspending someone from making deferrals after a hardship was: if you have to dig into your account for funds, how can you afford to make deferrals? So, stopping just the match doesn't really fit the bill. Plus, the suspension is not meant to be a penalty. Suspension of just the match would also be a penalty.

But what does that mean? Do they get the LP with the SPD? Or just on request?

Remember though, there is a distinction as to when the match is calculated and by when it need to be deposited.

I also have Jordan for Life Contigencies

For Interest, I have Kellison. I'll look into the Demographics book.

Have to? Supposed to? Can?

If/When do you have to give out the Loan Program? With the SPD? When someone requests a loan? When someone requests the Program?

Thanks, Andy. I'll check it out. I'll probably get acquainted with the material this summer, and see if I'll need the IA seminar after Thanksgiving. I have a lot of FM/2 material (including ASM & ACTEX manuals) and some MLC stuff. I'll go through the syllabus and see what needs to be studied and what can be skipped.

Even semi-annual entry date. Say you had 110 participants at the end of 2013. But in September & October you hired 15 new people full time. Assuming they are all still with the company, you'd now have 125 at the beginning of 2014.