BG5150

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I thought that using the Top Paid group, you would have to apply that HCE definition to all other plans of the Employer, too. Also, a negative could be if those people who are highly paid but are not considered HCE do not have a deferral, your test could be worse off. And switching from one mode to another does require a plan amendment, so there is time and effort and (probably) money involved. (Plus the time and effort of distributing the SMM's.)

I agree. I light of the recent airline case, I would be wary of plan administrators trying to use motive, rather than the black-letter documents in order to approve or disapprove a benefit.

As far as I know, the "limit" is still $5,000. However, any "force-outs" that are not rolled over by the participant must be placed in an IRA for the benefit of that employee if the amount is over $1,000. You client should be careful what it wishes for.

It sounds like the ER wants to put money into the plan over time and then allocate it to the participants. I've always advised against that, because, once in the trust, they money should stay in the trust. What if over the year business conditions turn unfavorable, and the ER no longer wants to make (or can afford to make) the PS contribution? Its hands are tied if the money is in the trust. What I usually suggest is to take the money that would have gone into the plan and put it into a separate retail account (bank or brokerage). When it comes time to allocate the money, the ER has the opportunity to liquidate some or all of that account to fund it. And as for pre-funding individual accounts if there is an hours or last day requirement, check the document. A volume submitter I have worked with in the past says that if there is an hours/employment stipulation, then all the money needs to be deposited after the end of the plan year. If even a dime goes in before the end of the year, then the allocation conditions are waived, and everyone gets a piece, regardless of service or employment status at the end of the year.

Nope. No safe harbor. Tiered allocation, but there would be no contribution for the short plan year.

If I recall, you would keep everyone else in the group at 5% and give mid-year entrants an additional contribution to get them up to the 3% of total comp. I don't remember if I had to do an 11g amendment to accomplish that (I don't think so, becasue the amount above and beyond the allocation group is a required contribution, not discretionary.)

Does it HAVE to say it in the plan? Or can it be an administrative procedure?

And what if someone refuses to sign such an amendment? You can't cancel the loan on them. Would it be a problem for the Employer to pick up the tab for the existing loans, and all new loan be subject to the fee? Or maybe negotiate w/ Nationwide to waive the fee for existing loans?

I have a plan that has an 11/1 --> 10/31 plan year. For whatever reason, they set it up that way long ago. It's a pain for them (and us) to administer it that way, given their fiscal year is also the calendar year. Is it too late to do a short plan year for 11/1 --> 12/31 and to switch to calendar starting 1/1/10?

Be sure to give those shops some information on your stolen stuff so they can be on the lookout for it. maybe even make a flier with the info and a picture.

I didn't think a plan HAD to shift to the plan year after the first year of employment? I am working on a document right now that says the eligibility period is from hire date to anniversary date, and further periods are anniv date to anniv date.

I was just trying to make sure that a DOH of 1/2 and a plan entry of 1/1 (the next year) would be okay. The plan sponsor only has one person whose DOH is even near one of the entry dates, and so far, has not had to address the situation.

So are we in agreement? You could interpret being hired on Jan 2, the year of service would be satisfied on Jan 1. And if the entry dates are "coincident with," then the person enters Jan 1. Absent of the "coincident" phrase, it would be July 1 (or the next date available under the plan. However, we should check with the employer to make sure how it was done and it was done consisitently. BTW: what setting in Relius would yield a DOH of 1/2 would result in entry on 1/1 the next year?

Can she give herself a $11,500 "bonus" and defer 100% of that?

You mean I can't allow the owner's daughter in on Jan 1 and keep the Yankee fan out until July 1?

Do you also presume they accrue hours for Jan 1, the non-business day?

Plan has semi-annual entry dates (1/1 and 7/1), and a 1 year of service (1000 hrs) requirement. Entry date is following or coincident with satifying the requirements. If a person was hired on January 2, 2009 and worked more than 1000 hrs in 2009, when would she enter the plan? I would contend that the one year of service is satisfied on Jan 1, which is coincident with an entry date. Is that correct?

I got an ad for Viagra (of Cialis, or some other crap) today via PM. I did not notice a "report" button. Is there one? Can there be? I did try to "block" any future PM's from this "person," but the account was no longer active.

Did the error find its way into the SPD?

But if you do that, you have to do it with everyone. You just can't say "Well, Jimmy really needs the money, so we'll take his fee from the forfeiture account, but I know Helen's husband makes a lot of money, so we'll just take her fee from her account." There should be an administrative procedure in place saying whether or not a fee will come from the participant or the plan.

1. Find out if any other employers did, in fact, adopt the plan, and see if they still want to be part of it. 2. Make sure testing was done correctly.

I had a client that had a "random" audit. They got a letter saying an agent would be contacting them to set up the audit and please have this, this and this ready. He gave the letter to me, we put together the required information, and sailed through the audit. [in fact, props to us and my clients records retention, the agent said it was probably the most complete set of information he ever got without have to re-ask for stuff!]

Who wrote the checks? For the distributions and the taxes. To see the gross amount distributed, I guess you could use the brokerage statements. For the withholding, you will have to rely on whomever did the tax withholding/payment to IRS to give you that information. (Hopefully, you have, or can get, copies of the distribution paperwork to see if the money was supposed to be rolled over or directly paid, so you can match up the withholding amounts and to determine the 1099 codes.)

The WRERA rules are in effect for 2010, but I think they are "optional" for 2009. Doesn't the plan have to adopt an amendment to allow for the rollover of non-spouse money for '09?