BG5150

Hre it is:

My document provider disagrees. They say a discretionary match is just that, discretionary as to formula, timing and who gets it.

Did you try asking DATAIR customer support?

Only if it's a discretionary match. Or, if it's a stated match, only if no one has earned the right to it yet. (Which I would doubt, if they are calculating it on a payroll basis. Otherwise, you would have to pay the stated match to those who have earned it thus far and then prospectively change your formula.

This is the part many folks miss: Side note: they CANNOT use it for fees.

Where in the regs say that you can test by "carving out" the otherwise excludable NCHEs and test the otherwise excludable HCEs with the Nonexcludables? (I'm too lazy to look for it, and I was hoping someone would have it in their memory and at their finger tips. I'm not asking anyone to go out of their way and do work for me. Only post it up if it'll only take but a moment. Thanks.)

Thanks, all.

....and as long as they are employed at the end of the year.

I didn't think you had to submit those any more, as the correction in Appendix B is for SCP. Also, the amendment is of if "teh employees affected by the amendment are predominantly nonhighly compensated employees." (emphasis mine)

sounds good as long as coverage is passing, too.

We have a plan that has a 21/1, quarterly entry policy. However, they started letting a bunch of people defer early. I know one correction is to amend the plan retroactively to allow them in. We have four people involved and 1 will become an HCE in '17. So, it's a 75%-25% HCE/NHCE ratio. Is that ok? My main question is: do they have to let everyone in whom the ALLOWED to defer? Or just those who CHOSE to defer. For example, if we have 12 people hired in '16 who were given the chance to defer, but only the aforementioned 4 people chose to do so, whom do we have to structure the amendment around?

...and under $10 no 1099-R needed!

Does he HAVE to get a PS contribution to begin with?

Spiritrider: 1) You wouldn't be rolling anything over in the first place. It would merely be a transfer. No 1099's. 2) I don't have much experience with choosing different vendors and their limitations. But you originally mentioned a no-cost plan at Fidelity. I'm sure there are LOW-COST options that allow for after-tax money. If they go to a TPA, chances are it will have its "own" document that can accommodate a myriad of options. 3) For a one participant plan, you are only going to need a 1099-R (maybe two?) probably only once in its lifetime--when it terminates.

Ooops.

He is excludable from the testing because he is terminated with less than 500 hours. Nevermind.

OP, just curious: what is your relationship to this client? A few points on your original post: As people have said, you won't terminate the old plan, it will just become a one-participant plan ("Solo-K") because of its make-up. Plans are free to move their assets to other providers whenever they want, how often they want. Where the assets are held has no underlying affect on the plan itself. You mentioned brokerage accounts. Will the brokerage house separately account for the different contribution types that may be put into the plan? (401(k)/Roth deferrals, Match, Profit Sharing, After-Tax, Rollover, etc) There may be withdrawal restrictions on some of the money types, as well as taxation issues on distribution. My suggestion is that you find several Third Party Administrators in your area whose primary job it is to take care of these things. Ask them about servicing a 1-particiapnt plan. There may be some up front costs to transitioning to a new plan document and client on-boarding, but nothing even close to $20,000. An ERISA attorney won't even be involved.

Failure was <=3 months. Plan effective date was 10/1

Keep in mind, once you transition to current year testing, you are stuck with it for at least 5 years.

^ no. (about needing the rate groups to pass) You can split your population into two "plans." The first has the offending HCE and a few NHCEs enough to pass coverage (in BOTH plans!). Then you give them all the same ER contribution. That plan will pass on a contributions basis. It's usually better to use the older NHCEs in the first plan. That way, the second plan the participants with the lowest EBARs are out, making it easier to pass the rate group or ABT. The second plan, you allocate in the manner you intended. You can then run the nondicrimination tests for that plan in either the rate group testing on an accrual basis (assuming Gateway is satisfied), or if necessary, the ABT. This is assuming that everyone is in their own group for allocation purposes. You probably would only need an 11-g amendment if you are failing somethinge due to the last day or 1,000 hour rule.

In my reply box, I can drag files or choose them. See attached screenshot. screenshot.docx

Can you utilize component plan testing? Sometimes known as restructuring?

I just attached the last spreadsheet I had open that didn't have client info in it.

Have fun with it!

I was able to upload a spreadsheet just fine.