BG5150

Was it all paid on W2? Anything on 1099?

Does the document have any language in it describing how to correct a coverage failure?

Could you amend the plan to give him his own group? Not sure if it's too late to do that. Is he over 59 1/2? Could he take a distribution of the "extra" 5% he would get?

Does the document (or AA) allow for the forfs to be used to cover fees/expenses? Also, I think the forfs can be used to offset the money sent for deferrals, too, since they are considered employer contributions. (The only employee contributions are After-tax and rollvoers)

And, if it specifically allows for that correction method int he plan document.

How long do you wait after you ask the SSA (or IRS) to forward your letters before you start moving accounts from a terminated plan? (assuming other avenues come up empty, as well) A month? 3 months? 6 months?

And a waste of time.

So, it's 415 first, then 402(g)?

Keep in mind, it is not 120 participants at any one moment. It is the number of active participants on the first day of the plan year, including terminated people who retain balances (but not beneficiary or QDRO accounts). Don't fall into the trap that the # on the last day = the # on the first day next year.

I edited my post.

On a side note, I believe the plan administrator has 18 months in which to qualify a DRO. Seems kinda long, but I think that's the timeframe.

It's not only 401(k) contributions. You must also take into consideration matching, profit sharing and/or forfeiture allcoations. So if a key EE had a 2% deferral rate and there was a 50% match, that would get the key EE to a 3% allocation...

I would consider it SHMAC, since it's 100% vested as are deferrals.

Number 10, to me, is the worst.

Don't forget about the deductibility limit which caps the total PS at 25% of covered comp. So, in total, the covered compensation for 2008 can't be more than $1,240,000.

The refund is taxed at the person's ordinary income rate. However, many record-keepers withhold 10% in federal taxes (and sometimes state, too), unless the participant elects another percentage, including zero.

However, so may argue that the date does, in fact, relate to the determination of taxes. Because after that date, the 10% excise tax gets assessed. There is a little writeup on it in the ERISA Outline Book:

When does the document say they come into the plan? Does it say something like "coincident with or the next..."? If so, I would think that this person enters 7/1/08 and is not excludable. Actually, With a hire date of 7/1, the person would satisfy one year on 6/30, so the next entry date is 7/1. If you are using Relius, depending on the setting, I believe, the program will exclude those who have worked less than 18 months for some reason.

That made my day! To the OP: can you go back to the organization which wrote the plan? Maybe it can tell you where to look in the plan/AA for the guidance you need.

Since gap earnings are not applicable for 2oo8, how would you figure out earnings on an ADP refund in this case: HCE puts in full $15,500 deferral from last paycheck of the year. Pay date is 12/28 and the deferrals are on the 2008 W2. However, the deposit to the plan is not made until January 5. HCE is due a gross refund of $3,000. How do you figure out the earnings on that? None whatsoever, since everything was deposited in '09, after the plan year ended? [Hypothetically.]

For # 2: Check the plan document. Many times, if a person does not have "X" breaks in service and was elgiible when he left, the person is re-eligible upon rehire.

I'd like to add, though, that if you are doing refunds more than 1 yr after the plan year end, a QNEC (whether it is just a QNEC or a 1-to-1) is given as if the plan was not split into component parts. (EPCRS)

3/3/09? SQRT of 3309 is 57.5239 Or do you mean that 3 * 3 = 09?

What digits of 3/3/2009 make it a square root day?

The IRS addresses multiemployer 401(k) plans in some of their plan examination guidelines, as has the DOL in some media releases. There are also a number of other resources such as this book. The link for the book returns an error. It goes to the site, but the page can't be found.