BG5150

After your input and thoughts from others, I think I'm going to steer toward taking the EA-1. I'm going to have to come up with some sort of study plan, however....

From what I understand, the money doesn't have to be allocated to particular accounts, but merely placed in the Trust.

Don't forget, that the $18,000 loan is payable in 5 years max. I'm not sure what the window is on your student loan. It's about $340/month, or $170 every semi-monthly paycheck at 5.25% interest. (We use prime +2)

Hospitals close all the time. Or reduce staff. So if your position gets eliminated, you get terminated and the loan comes due. It doesn't matter if you find a new job the next day. (Chances are, any new plan you get into will not accept a rollover of the current loan) If you can't pay it back, you owe taxes on the outstanding amount. Plus a 10% penalty tax on top of that.

The way you grow your 401(K) loan is if by some stroke of luck, the cost of the shares you are buying back are less than the cost of the shares when they were liquidated. In this yo-yo market, are you willing to take that chance?

I would think so. But they also count against the 2014 415 limits.

It's been over 20 years since my last math class.

Half were EA! Half were FM/MLC! Just looking for another perspective. (Pension Actuaries are the like crazy family uncle over there.)

But it's a lot of material all at once. I was thinking it's either: Do 2,000 pounds of learning/studying at once (EA-1) or do 2,500 pounds of studying, but only 1,250 at a time (FM-MLC). And you never know, ASA/FSA could be an option (way) down the road...

I wasn't sure where to put this, so I chose the DB forum. I would like to start on the path to become an Enrolled Actuary. On of the steps is to pass the exams. The EA-1 is only given once a year and encompasses financial math and some life contingencies. Credit for the test can also be obtained by passing grades on the SoA FM/2 and MLC exams. I was thinking of taking the 2 SoA exams for a couple reasons: 1. They are given half a dozen times a year. 2. It breaks down the material into two exams instead of one big one. However, it looks like the syllabus for FM (at least) is more expansive than the financial math needed for EA-1 (derivative markets is a big slice of the exam). I haven't looked at the MLC vs EA-1 topics yet. So if I take the two exams, I will be studying more material than I need. Any thoughts?

But what recourse does the TPA really have to take plan assets to pay fees without plan administrator or trustee approval?

Jim, why wouldn't this person be 100% vested? There is a side note in the EOB that mentions not vesting a former employee with the dissolution and liqudation of an Employer, but that might be a stretch. Chapter 4, section XII, part A #1.

[tangent]Whenever I see this thread title, I can't help to hear "Two Hearts Beat As One" by U2 in my head.[/tangent]

Is there an affiliated service group relationship at all?

If company A bought company B, then who are the other 4 people?

The only way I see the auditors side is if you get only get paid once a year.

Will these manager become HCEs relatively soon?

Is restating the plan considered an amendment? If so, I would say that it would be a discretionary amendment and not eligible to be paid out of plan assets. Could you be surreptitious about the billing and say there is a $1,000 "take over fee" or something and that the new document is part of it? Maybe.

I have a participant who moved from "regular" employee to union employee, and thus now ineligible for the plan. She has a balance from deferrals and ER contributions. Can she take a hardship distribution?

Why would the ER do this? Is there an asset breakpoint that will be hit?

Nope.

Good point, Two Pennies.

I agree with Kevin. If the terminated participants will be charged an EXTRA $50, I doubt that will sit well with the agencies. If the company is already paying $50 a participant and they want the termed people to pay instead, I believe that's ok. I already do that with some of my clients.

Is there a penalty when a plan administrator does not cash-out the low balance accounts timely? (Assuming the plan document calls for it) Obviously, it is a failure to follow the plan document. But has either service assessed penalties when the PA doesn't keep up with it? Or is it just "get it done" when it's discovered?

Would the ER have to open up an account in the trust's ID? My guess is they'll have to get a new one, as the old one was put out to pasture and/or recycled.