CJS07

A plan excludes HCEs from a safe harbor match formula and the plan is top-heavy - one of the HCEs is NOT a key employee - is it ok for the Company to continue to exclude him from the safe harbor allocation or must they give him a safe harbor match allocation to cover top-heavy?

We have taken over two plans that are 100% owned by the same individual. The former TPA never aggregated the tests and treated the plans as entirely separate (two documents, two 5500s, two plans at the fund company). The owner participates in only 1 of the plans. The plan the owner participates in does a matching contribution. The other plan has deferrals only and all NHCEs for 2006. I know we need to aggregate the 410b test but someone mentioned aggregating the ADP/ACP testing which I had never heard of - anyone know anything about aggregating ADP/ACP???

Two questions. I have a plan that has 88% of the ownership in Trust under a deceased persons name but for the benefit of his wife who is living and owns 3% on her own. Should I be counting the Trust shares under her for a total of 91%? Also, when determining the top paid group - 20% comes out to 3.2 employees. Do you round up to 4 or down to 3 in this case? Thanks!

I have a single participant who wants to name a non-profit organization as a beneficiary - is this (1) allowed and (2) a nightmare if the participant does die? Also, the same participant is interested in naming a foreigner as beneficiary. I believe this is allowed but the death benefit would be taxed according to the tax treaty of the country the foreigner is a resident of - is this correct? Thanks!

Can an employee take a loan from their Safe Harbor source/account? The document allows it but I seem to remember that source being restricted (example Hardships). Just wanted to double check. Thx

Just got back from vacation and apparently my brain is still on vacation. . . Plan year end is 5/31/06 - what would the limit be to determine HCEs for the 06/01/05 - 05/31/06 plan year? 90k or 95k? THANKS!