BG5150

"When in doubt, max them out." (with the vesting) I just made that up just now.

FWIW: I just put the actual bond amount.

Yes. It is an employer-initiated reduction in staff, and it's significant. 50% of the staff (if the owner is the 3rd participant) is now no longer in the plan.

I list CPC and ERPA. The CPC implies the other ASPPA designations were achieved. I add then for a few reasons. One, it implies some sort of industry competence, even if the layman has no idea why it's there. It's there to show other professionals in the industry that I've gone through the rigours of the training. It's good for potential employers to see. From time to time a client will ask me what the letters are for, and I'll tell them. It helps garner some trust in my abilities. If/when I get the Tax exempt/Govn't plans designation, I'll add that in there. Maybe. Not sure yet. At least on these boards here and on my resume I'll add it. It shows people that I might know what the hell I'm talking about.

Maybe something was missed in translation. I'd rather have Relius deal with it than have to deal with it here...

Yes, use $340k. But be mindful of the 402(g) limit and catchups. So the QNEC is limited to $9,750 (plus $3,250 c/u) no matter what the compensation.

What if the person was fired (ER action), but the position was not eliminated, but restaffed. Depending on the timing of the hire, it could be nearly 18 months until that person becomes a participant. (Think someone hired July 5, 2021. With 1 YOS and semi-annual entry, they aren't in the plan until 1/1/23!)

I'd ask Relius that.

I think with the new EPCRS, there is much more latitude with retroactive amendments. Just be cognizant of who may be benefiting versus who may get a cutback of sorts.

(d)(i) If the employee was not provided the opportunity to elect and make elective deferrals (other than designated Roth contributions) to a safe harbor § 401(k) plan that uses a rate of matching contributions to satisfy the safe harbor requirements of § 401(k)(12), then the missed deferral is deemed equal to the greater of 3 percent of compensation or the maximum deferral percentage for which the employer provides a matching contribution rate that is at least as favorable as 100 percent of the elective deferral made by the employee. AND The required QNEC on behalf of the excluded employee is equal to (i) 50 percent of the missed deferral, plus (ii) either (A) an amount equal to the contribution that would have been required as a matching contribution based on the missed deferral in the case of a safe harbor § 401(k) plan that uses a rate of matching contributions to satisfy the safe harbor requirements of § 401(k)(12)...

I thought retirement was 30 days? For the others, is the plan sponsor gonna tell the people over 59 1/2, right be fore they get fired, "If you want any of your retirement money soon, you need to take an in-service withdrawal. Because soon, you won't be in-service with us any more..."

Would doing that throw the doc out of prototype or VS status?

Participants always get the required notices. To me, it has nothing to do with balances. Except Safe Harbor and SPDs. If they aren't contributing, they don't get one.

In this case, if the computation period is the Plan Year: What happens is someone quits in March with 250 hours which is under the threshold to have a break is service. Wouldn't they get their one (1) Year Break in Service on 12/31 that year, or at least on the next 1/1? (And what does your Section 7.02(e) and the rest of Article 7 say?) What if they quit in March 2021 with 250 hours, get rehired in Sep 2021, work 100 hours, quit. Get rehired in next February 2022 and work 40 hours. Now, no matter what the computation period is, in Feb 2022 they have the requisite BIS and should be able to be paid out right away. Heck, if they never worked 500 hours in a year, they might have two, three, five, eight consecutive one (1) Year Breaks in Service under their belt.

Then it gets prorated. Not the 19,500, but the 415 and comp limits

402(g) is a calendar limit.

Scooby, I meant CASH BASIS plans. I'll edit my post...

Cash basis plans, I only count the number of accounts on the custodian's trust report.

Sponsor had excess DB assets and moved to a QRP in a suspense account. We have been transferring roughly $50k a year (whatever the 415 max is per year). 2019 was the 7th year. There is still about $180,000 left in the account. What happens to those funds?

I do it this way. Because if for some reason the DOL comes knocking first, you lose the ability to file under DFVCP. Or am I wrong in that?

If it was merged, there were no distributions, so no 1099-Rs. If it was actually terminated, the employees should have had the option to roll it over to plan B. If so, then 1099-Rs should have been issued. Be sure to bill UP FRONT for any work you do for them. Make it known you are doing the work as a courtesy and this is ad hoc work, not subject to your previous service agreement. If it is on ADP's platform in 2020, why isn't ADP preparing the 5500? But, hold on, what did the disengagement letter say? Was the plan terminated and moved before you got the letter? (Who did the plan term/merger paperwork for plan A?

After tax is tested under ACP and ACP only. So in the example above, the ACP test fails completely. Although salary deferrals (including Roth deferrals) are tested in the Average Benefits Test, I don't think voluntary after-tax contributions are part of the ABT. I am not sure if they are taken into account to determine the allocation percentage to Key EEs for Top Heavy purposes like deferrals are. It's been a LONG time since I've dealt with voluntary after tax contributions in a 401(k) plan other than legacy contributions that are being distributed.

If her hours drop and she doesn't want to defer, then she can merely stop. You cannot impose a service requirement (hours or elapsed time) to continue to be eligible to defer once the initial requirements are satisfied. (You can for match or profit sharing).

They certainly are allowed. But if the non-qualifying assets are more than 10% of the plan assets, the ERISA bond needs to be for at least 100% of the value of the non-qualifying assets. Basically, if it can be held in a brokerage or bank account, or held at a custodian like Voya or John Hancock or Lincoln Financial, then it's probably qualifying. I've had plans invest in coins, artwork, buildings. Those are examples of stuff not qualifying. I never did like the term. Makes them sound shady or something.