BG5150

You could have immediate eligibility for 401(k), but a year wait for the SH.

^ I'd do the distribution now as a rollover. If the person terminates (retires) before the year is out, then you let her know a portion of the distribution was not eligible for rollover and issue the proper 1099's.

Is it right? No. Illegal? I doubt it.

I would amend. In the couple years before that, were they availing themselves of the abbreviated, under-25 participant small-plan filer rules, too? (Pretty much 5500 + Sched I) You may have to amend back further.

Could they pay him on a 1099?

^ But once you do that, you're suck with it, right? In-service withdrawals (except hardship) are a protected benefit, I think. (Unless you want to start tracking benefits accrued to the date of taking away the benefit, and the accruals after.

Also, if it's a SH Match, EVERYONE needs to get at least 3% ER money.

So, are you going to create basis in the HCE accounts? And they get to keep earnings on those amounts? Just doesn't seem fair--Hey, Mr. HCE, just pay taxes on the amounts now, and we'll let the earnings on it grow tax deferred even though you shouldn't have had these earnings in the first place...

If the money was never taken from the trust, why is the old TPA just reducing the amount on the 5500? The money has to come out, or get redistributed out of the HCE accounts sometime, somehow...

So, you can say, "we might be SH for 2013" (back in Decemeber '12). And then change the PS allocation sometime in 2013 as long as the ER will send out the Dec '13 notice saying "we're not SH for 2013"? But what if they want to actually be SH for '13? The OP is a little confusing. It seems like the year in question is over, but it is asking if the plan can me amended mid-year. Which year?

And change the entry dates to monthly.

I would NOT include them. If the auditor insists on having them in there, put them in there.

Are you straddling the audit/no audit line? If not, I don't think it matters that much. If the plan get audited, and they bring it up, then just tell them why you filled it out the way you did. I doubt they'll give you grief.

The reason for the last 4 digits is that it's less probably that someone with the same or similar name will have the same last 4 digits.

I believe in some states, you aren't allowed to put stuff in the mail with SSNs on it.

Actually, that's in there, too.

"I'm not gonna tell you if I'm married or not, but I really, really want to cover this lady who lives with me and shares my last name."

What we came up with is this: The person is now eligible for the distribution. it would be counter-productive to have the money replaced to just have it withdrawn again. We'll put a note in the file stating the position and move on.

What would be sufficient, then?

Plan allowed a participant to have an in-service withdrawal before his time. (allowable at 2 years of accumulated funds or 5 YOP, but both only from 100% vested sources). participant was 80% vested at the time. EPCRS seems to say that we could fix this by: 1) adopting retroactive amendment under VCP; or 2) have the employer take "reasonable steps to have the Overpayment...returned by the participant...to the plan." For #2, what are reasonable steps? just write a letter? (BTW, the money was NOT rolled over) Are there adverse consequences to the participant if he doesn't pay it back?

Hopefully, you're not doing a true-up 8 years late!

Well, never mind on the "room" question: http://benefitslink.com/boards/index.php?/topic/39376-hardship-withdrawal/ But what about the "board"?

As far as I can see, the regs say a safe harbor hardship reason can be payment of "tuition, related educational fees, and room and board expenses for up to the next 12 months." Does "board" inlcude off-campus housing? Do you get a copy of the rental agreement and see what the monthly payment is? How do you account for "board"? Estimate monthly food bills? Is there somewhere in the code that spells out room & board?

Pros: front-loading is not a problem for the EEs Cons: mid-year raises will cause a true-up

There are several reasons (for me). (In no particular order) 1. Career. I may or may not be at my current company for the next 10 years or more. The CPC designation is a helpful line-item on a resume. 2. Professional. It can't hurt if and when I'm brought in to help woo potential clients. 3. Closure. It's a sense of "finish what I started." 4. Education. At least with the modules, I have a deeper understanding of some of the topics I deal with day-to-day. 5. Initials. The more the merrier!