BG5150

Do the rules for full-year EACA apply here? I know it's in place already, but only for part of the population. Can you add more people mid-year?

[redacted]

I had to do an 11-g amendment to give benefits to one person. Do I have to create an SMM for her?

Bummer. My second plan does not pass the ratio test, and combining the two for ABT in no good either. I'm going to have to shift some of the people from the accrual group to the contribuions group. :(

So, to be clear, if one of my component plans fails the ratio test, I'd have to test BOTH component plans TOGETHER using the ABT.

Would something like that take the doc out of prototype/VS status?

So, Tom: I am doing component testing, and I have a small group I'm testing on a contributions basis and another group I'm testing on accrual. Do I have to pass 1) rate group testing on the second group by ratio method or 2) the entire plan on the ABPT?

I'd send him a letter telling him that he's getting two checks. One for the RMD and another for the rollover. Also tell him, unless he advises you otherwise, 10% will be withheld for taxes. Don't forget to include the 402(f) notice.

Then they just get the money refunded. It's like an $18,000 bonus the next year!

duh. never mind. i need more caffeine this morning...

Where does it say that an HCE is not required to get a Gateway?

If the only contributions are 401(k) and SH Match, is there a Top Heavy issue?

Gonna be Friday next year. So, I think you will want all your refunds done by at least the 14th, so the check dates read 3/15. Otherwise they will probably read 3/18 from most investment houses.

And I think it's supposed to be the check date, not the transaction date.

There is an excise tax due of 10% on the gross amount of the refunds.

Another thought, however. If you originally used disaggregation, you do not have that available to you under the EPCRS correction. You must test the plan as a whole. This will probably further increase your refunds...

What if the distribution is AFTER 4/15? I know the gross is taxed in both years and earnings in the current one. Still no withholding?

Thanks

Not SCP?

If she normally would not get a profit sharing, all she gets is Top Heavy. But, if the plan will be cross-tested, you document probably has her bumped up to the Gateway. That's it. If you need her bumped up to pass testing, you will have to do an 11-g amendment. (Ninja'd by Lou!)

Looking over a Return of Excess form from a large record keeper. In the tax withholding section it says (paraphrasing): if the distribution is on account of 415, ADP or ACP, then 10% withholding will apply unless otherwise indicated below. Then it goes on to say (quoted): Excess deferrals (402(g)) are not subject to withholding. (emphasis mine) Is that right?

Discussion in the office: Key EEs have 75% of plan assets. TH according to account balance test. Plan has 3% SH to all. Plan is deemed NOT to be TH by virtue of the SH rules. What if we excluded all HCE, or only non-owner HCE from the 3% SH. Do we still get the TH "pass" as there may be some HCE who are non-key and would otherwise get the TH contribution had the plan not been SH.

Does the ER trust these people enough that if plan disbursed money to the participants, the participants would pay the company back?

I'm not sure what went on here: Did the company pay for distributions from the plan out of their own pocket first? Like, termination or in-service distributions? Or did the company give the participants their profit sharing contributions right to them instead of putting them into the plan? Some companies call their profit sharing contributions to a plan a profit sharing distribution (because they are distributing company money among the employees/participants).

Your first born or Bird? ;)