BG5150

You can put a space before or after the "c" No space: © Space in front: ( c) Space after: (c )

You also have to take in consideration any principal outstanding in the past 12 months. Generally, though, this doesn't come into play, unless the acct balance is over $100k.

I'm guessing, originally, the fees were being paid out of the forfeiture account, which would then have had no affect on participants' account balances. To the OP: have you tried contacting you benefits department? But don't the fees have to be at least disclosed in the SPD or SMM?

I just found out we do have access to TAG (yay!). I sent them over a request today. (crosses fingers)

Does anyone have a spreadsheet or similar type app that will determine if two (or more) companies are in controlled group situations? Something where you plug in the different ownerships for different companies and the program will tell which co's are in a controlled group.

Usually, the TH contribution is made AFTER the plan year in question since: a) only eligible participants at the end of the year get the contribution and b) you use FULL year compensation to determine the 3%. Also, in the original post, it is mentioned that a 3% match might be used for the TH minimum. That would be okay if every eligible person deferred. But how many plans have 100% participation? You would have to give some sort of ER contribution to those who aren't deferring. (Unless, of course, this is a Safe Harbor plan that uses SH Match and no other ER contribs...)

My suggestion: Make them whole as soon as possible and allocate applicable earnings. (And the comp should be spelled out in the docs.)

Here's a site that I pulled up with "benefits consulting firms" in Google: Employee Benefit Research Institute I has some of the bigger players. But remember, bigger isn't always better. There are other agencies out there that do the same thing.

Just to clarify: It is only the period for which you are considering in which there can be no other ER contributions. That is, older PS money or forfeitures or match are okay to be IN the plan, but not made for the year you want the exemption. And why not statutory entry dates? At most you are talking about someone coming in six months earlier. As always, see what the document says. (Or is this an IDP?) And why not immediate rollovers for HCE's? Most places love to get assets, especially the usually larger rollovers from HCE's. Perhaps with bigger avg account balances, the client would be able to get better pricing.

Because the Boss wants a bigger match! lol

Only the first 3% (the top heavy minimum). We do our allocations based first on participation comp (if the plan allows). If there are people who only had partial year compensation, and the allcoation was less than 3% using participation comp, we up them to 3%.

Was he allowed to defer from that "compensation"?

Our Adoption Agreement explicitly does not allow for recurring (ie during the plan year) matching contributions if there is a service requirement imposed to get said match. If there is a service requirement, then the match has to be made after the plan year ends. If there are recurring match contributions, everyone gets it, regardless of hours or employement status at the end of the year.

I don't think it's allowable because by now, it's non-deductible. Or can they just pay an excise tax on the non-deductible amount via 5330?

You might want to send a letter along w/ the amended return saying the original filing was an EZ.

I don't see anything about 500 hours in that document exerpt. Did I miss it?

For the late distribution of ADP failure, how much is subject to the excise tax: the gross amount that would satisfy the test, or that amount net of earnings/losses? I need to know how much to put on the 5330 for the plan.

I believe you are good to go... [Opps. That was before I realized one or more of the individual rate groups failed]

I need to get my NHCE's up by an aggregate of 11.51% to satisfy the ADP test. I'm doing a bottom-up QNEC for them. I have 8 NHCE's but two of them are terminated. I have two allocations, and I'm not sure if the first one is okay with the new rules. The NHCE's are labelled A-H and have descending comp (ie, A is highest, H lowest) and as it turns out G & H are the terminated people. First one: A 0 B 0 C 0 D 1.51% E 5% F 5% G 0 H 0 total: around $6100 Second one: A 0 B 0 C 0 D 2.51% E 4.5% F 4.5% G 0 H 0 total: around $6300 Is the first allocation okay? I can do a bottom-up since no one is getting more than 5%. But the rule about nobody getting more than twice what some one else is getting: does that apply since no one is getting more than 5%? Or does that kick in if I'm doling out more than 5% to anyone? Your thoughts are appreciated.

Why would a profit sharing contribution be reflected on a participant's W-2?

12 months prior to last day of plan year. (I believe)

I have a calendar year plan that has an effective date of 3/1/2006. What limits do I pro-rate for the year if any?

That's the way I was brought up.

I'm no mind reader either, but I'm guessing it is something like: 1) pro-rata up to 3% of comp 2) pro-rata on comp above integration level up to 3% of that comp 3) pro-rata on comp above integration level up to max disparity as defined in docs 4) pro-rata to everyone until desired funding level is achieved

I would think you (as a record keeper) would need SSN's so proper tax forms could be produced if necessary.