BG5150

Or, you could just send it to me. I won't tell... ;)

And, yes, they can be used for SH. At least that was the opinion of several ERISA attorneys I've worked with.

No fees. Must be used for contributions. These are excess allocations, not forfeiture of unvested money.

The contribution and its earnings go into a suspense account to fund the ERs next contribution (other than deferrals). In fact, the ER can make no contributions until that suspense account is exhausted. (EPCRS 6.06 (2))

Can someone give me an example of this you've used for a client? I'd like to add this arrow to my quiver when talking about plan design with clients.

Don't confuse eligibility period being the plan year and a YOS. My thought is that it is a constant rolling three-month window, even after a year. Also, with a caveat, that if someone does work 1,000 hours in a 12-month period, they enter the plan on the next entry date. What changes is the window, so to speak, for a YOS. Typically, it is the EEs anniversary year. After that, it reverts to the plan year.

^ Unless it's a Safe Harbor Match. Then it has to be put in by the end of the following quarter.

SH Match formula is 100% up to 6% of pay. Is this okay? Is it just a discretionary match that is capped at 4% of pay?

I think the IRS would find it more problematic if there is a pattern of not withholding. If one slips through, I don't think it's a big deal.

If the participants did not have an option to take a distribution, I would say that this is a spin-off. If they were, then it's a new, successor plan. It's not a merger, as there was no existing plan with which to merge.

So, out of luck for two years: 2016 & 2017.

You could, but you would need to get all the underpayment rates and for which months they applied. Someone in my office did one, but I cannot find it at the moment.

Could it be considered a spin-off? Otherwise, anybody leaving a MEP would be out of luck for a year.

When does the document say the deferrals start in the new plan? If BOY (7/1), then do you have a problem that no deferrals were taken until December?

Call Sungard.

Only if the document provides for the exclusion. You can't just not contribute a SH to an HCE b/c you feel like it.

A SH plan has to be at least 3 months, I thought.

Mike, I don't KNOW it. I guess it's just been in the docs I've been using and figured it would be in all of them. It would make sense. There I go applying sense to stuff.

I got one from Tom. It was the one I was looking for. I will save it at home, too, so if and when I change jobs I won't have to ask for it again. It's 5 owners and 4 companies, but it does what I need it to do for now. Thanks, all.

too late for an 11-g amendment

Any prototype or VS should have provisions to address the auto-increase situation. If it is not clear at the moment, there should be choices under the plan to make it more clear without having custom language potentially taking it out of VS status.

This still doesn't change the fact the owner has access to an investment house that the staff doesn't. Could this still be a BRF issue?

Who will monitor the fees to make sure they are not excessive?

Why would you want to destroy contributions? ;)

First off, if the owner is the only one who has a balance big enough for the outside brokerage account, then you are most likely failing BRF. However, offering a blank canvas to the other participants is problematic, too. Is the owner willing to take on the fiduciary liability that would come with monitoring all the possible accounts? First off, I think that fees could be an issue. All the accounts must be in the name of the trust. Is the owner going to set those up, or at least get involved with that? Is there a way the owner can use his clout to get the boutique firm to lower its entry requirements for his firm's employees?