BG5150

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]

Yeah. Does the plan doc exclude service prior to the plan inception for eligibility?

To save the OP time, here are a few discussions on the mythical double-taxation on loans: http://benefitslink.com/boards/index.php?/topic/46277-double-taxation-on-loan-repayment/?hl=%2Bloan+%2Btaxed+%2Btwice http://benefitslink.com/boards/index.php?/topic/49323-discussion-on-loan-payments-and-double-taxation/?hl=%2Bloan+%2Btaxed+%2Btwice http://benefitslink.com/boards/index.php?/topic/16641-401k-loansdouble-taxation-or-not/

Advice: put all your questions, comments and concerns as to the issue in writing to the client so you don't get that "you never told us this" phone call when the DoL noses around.

One of my X-test groups is "Owners." Situation 1: Jim owns 100% of the company. Is Mrs. Jim in the "Owners" group, too? Situation 2: Jim owns 4% of company. Rest is owned by passive investors. Is Mrs. Jim in the "Owners" group, too?

How can there be a control group if the two entities never existed at the same time?

Does the DoL opinion mean anything if the plan doc tells you how to dispose of the proceeds? As long as it's one of the methods listed, I think the OP has the course of action. OP: How long ago was the record date? Do you need participants in the plan? Or participants invested int he insurance product?

That's pretty restrictive document language.

Move the money + earnings to the suspense account and use to offset a future SH match.

^ sorry. I got this thread mixed up with another. I deleted my post. Not a banner day for BG at BL.

You are correct. That's what I meant.