BG5150

Are there any key employees who are not doctors?

Prospectively, not retroactively. OP said 2014.

Eligibility is not a protected benefit, so, yeah, they can exclude the HCEs. I do not know the answer tot he TH question. If it's a SH plan, why are you worried about TH? Is the SH a match?

What. Does. The. Plan. Say? Often there is a hierarchy in who is the beneficiary already built into the plan document.

Annual notice: We're gonna charge you $100 for a loan, $50 for a distribution and $150 for a QDRO. Participant takes distribution. There's a $50 fee on the statement. Why is that a problem?

I read in a Relius Technical Update (from October '12) that the DoL might not be so crazy with self-directed brokerage accounts, especially if there is a near-limitless investment universe. The piece has phrases as "The DOL could contend..." or "the DOL may argue..." Relius's point being that if you have all these investment opportunities, it may be too much, and the plan sponsor might not be able to furnish ample and appropriate investment information. Is there any DOL correspondence stating the DOL position on brokerage accounts? I read FAB 2012-02R and it has stuff like fiduciary responsibility still applies with regards fees and services. But nothing about the concerns made in the Tech Update. I didn't see an ASAP with anything similar, either. Your thoughts are appreciated.

You use the age of the participant at EOY. In this case, the participant is 71. You use 27.4 when someone is still 70 on 12/31, i.e. someone who turns 70 1/2 after July1. You only take into account the spouse if the age difference is 10+ years, I believe.

We had one penalty letter that was for $83.14. edit: and FWIW: this came a few months ago. We wrote to the IRS on behalf of the client saying we filed on time, and they abated the fee. (Actually, they refunded the fee b/c my client (after admonishments from me not to) sent a check in before we got it straightened out.)

Known issue now. The IRS will send rescission letters in a couple weeks. ASPPA just sent out a GAC alert:

^ you lose the ABT for coverage in that case, tho'. So don't give too many zeroes. Though with a SH plan, that point may be moot.

And, if a distinction is missing, you may want to add it via amendment or updating the loan policy.

HCEs play a role in a lot more than ADP/ACP. Just about any test other than top heavy consideration concerns HCEs vs NHCEs.

A 1% owner is NOT an HCE unless the compensation (in the look-back year) puts him/her over the comp limit and into the TPG (if the plan is using that method of determination).

From EPCRS on whether or not an error is insignificant (I added carriage returns) Sounds like 1 & 2 are non-factors. 3, 4 and/or 5 might be relevant. Hopefully 6 is not. 7 might be.

Would component plans work? Have some folks in C "team up" with those in A and the rest of C go with those in B.

Did the company deduct those contributions for the 2011 year? If not, I doubt they'd be able to go back and do the PS for that year.

You and I work for the company. It's owners want to sell. If they don't sell to you and me, they will sell to someone else and we might be out of a job. (just a thought)

Is a loan not an option? Is the bulk of the money K money, or employer money. You can have in-service withdrawals at almost any time of ER money (still subject to the 10% penalty tax). Don't forget, with a Fact & Circumstances pattern, ALL resources reasonably available to the participant must be exhausted first. The EOB mentions a vacation home. I've read that brokerage accounts, boats not needed for work, and other investments are fair game. From the EOB, the participant must put in writing that the hardship cannot be alleviated by:

is it the employer paying, or is it some sort of Third Party Sick Pay?

Side note: Some plan document options let you disregard rollover accounts when determining if a cashout/auto-rollover is called for. For example, John Q Publick may have a vested account balance of $12,500. No force out allowed. or is it? Say $9,000 of that is a rollover from his former 401(k) plan, with the remainder of the account worth $3,500. You can and should make the distribution if the plan does not consider rollovers with regards to cashout.

Colored folders and a handheld label maker.

Can match have a 2-year wait? Or is that just PS?

As long as R/O is not a restricted source for loans per the document/loan procedures, then I don't see why not. It's part of the vested account balance. Loans are not like hardships. The availability of other withdrawals in the plan does not matter.

Keep in mind, that 6 months is the MINIMUM suspension time, and the time can be longer. If the plan is a safe harbor matching plan, the time period is MUST be 6 months.

[hijack] Why is this bad if the plan document calls for it? [/hijack]