BG5150

I would put the money in a suspense account in the plan and use it to offset the next contribution. I am not a big fan of returning money to the company once it's invested in the trust.

Basically, the way I read that is: If company B want to make a 50,000 PS, the the 50,000 gets allocated across participants from both companies. The match, I'm not so sure about.

Or under 21. Or those with less than 1 yr of service.

In other words: Were there any NCHE's who entered the plan during 2008, but terminated before year end? (Or HCE's for that matter)

I have a 401(k) plan that has as a distribution option installment payments figured over the life expectancy of the participant. Say a person selects this method. But three years later, she wants/needs the money. Can she cease those payments and take a lump-sum distribution for the remaining amount?

You can have the money deducted now, if you are still in the same plan year. You may or may not want to investigate whether or not earnings should be applied tot he missed contributions.

Shouldn't the CPA know about stuff like this?

Does "after the close of the plan year" mean after Dec 31 (for calendar year plans, obviously)? Or does it mean "after all contributions for the plan year have been made"? There is a significant difference. Using the latter may mean that distributions might not be done until the following September or October. So if a participant terminates in January, then he or she may have to wait 21 or 22 months to rollover an account that may or may not be getting an insignificant contribution (comparable tot he rest of the account blance).

A?

ADP/ACP testing is one thing, but determining a profit sharing, forfeiture or safe harbor allocation is another matter; you can't pick and choose which comp you want to use.

Should we assume that is the reason it's your "old" job? I don't know why they did it that way. Actually, it sucked, b/c there was no taxes taken out of the bonuses, and I had to take a hit come tax time.

In my old job, I got paid on a W-2 and our bonus was paid on a 1099.

This is the only correction of early inclusion I found in EPCRS:

If the match is a stated match (rather than discretionary) I think they do. Plus, the plan could get disqualified if the ER doesn't put in the money.

But, if we file that Schedule R (with only identifying information), will the IRS notice the abbreviated Schedule A and no Schedule D?

I think the only thing an early retirement provision will get you might be accelerated vesting for someone (to 100%).

So you would count someone as a participant at the end of the year if they were expected to get an allocation? For example, Ms. Ishkabibble becomes elgiible for the plan on 1/1/08. PS requirement is 500 hrs only (no last day rule). She terminates in Sept 08 with 1080 hrs, so she's gonna get the PS. I count her as a participant at the end of the year, but do not include her with the account balance people?

I have a small plan for which I am doing the alternative reporting. There was a distribution in 2008. The instructions say for the alternative reporting regarding Schedule R (p.9 of instructions): Identifying information and Part II. If I have nothing to report in Part II, do I still have to file it?

I have a plan that we report the Schedule I on a cash basis. At the end of 2008, there are three people with actual accounts. The ER owes a 2007 top heavy contribution which is going to go to those three people plus another two people (and those two people are terminated). We have not reported the contribution on the Schedule I as a receivable (since we are filing on a cash basis). For the participant count on Form 5500, do I put 3 account balances or 5 in 7(g)?

What do you mean by "freeze"? Is it to stop all new contributions, but allow current money to remain? Or is it to require the current money to stay?

Were the bonues paid this year or last year?

I agree with you buckaroo. In a counter-intuitive approach, people who make more than the HCE limit for a particular year will be considered an HCE for the NEXT year. The example is a bit dated, be this is from ERISA Outline Book: Of particular interest here is the last sentence. To determine a HCE for a particular year, you look to the participant's compensation vs the HCE limit for the PRIOR year.

If the plan specifically allows for it, I see no problem with using forfeitures to make a corrective contribution...

Have you tried Relius's "Proposal"?

"Going through EPCRS" does not necessarily making a filing. The missed deferrals, as long as they are not significant, can be corrected through SCP. The method of doing that is outlined in EPCRS. If it was an isolated incident, I think it would be okay to do SCP. But if it happened to a lot of people, or happened multiple times, VCP might be a better approach.