stephen

It may not be prudent to make a $11,000 contribution in January. For long term investing wouldn't the participant be better off dollar cost averaging their contributions throughout the year?

It is my understanding that you could do the following: $3,000 profit sharing contribution $1,000 catch-up contribution (if you are over 50 or will turn 50 this year) $11,000 salary deferral Total contribution $15,000 If you are not eligble for the catch up contribution your profit sharing amount could be increased by $3,750 (25% of 15,000).

What is the proper method of correction if a company fails to offer the election to qualifying participants? In some instances, the qualifying election period has already passed.

Does anyone have a catch-up contribution form they will share? Thank You

CA is taking the steps to conform. It appears NY has conformed. See the link below: http://www.segalco.com/compalert122701no2.html

You may have seen a reference to non-conforming for EGTRRA states. There is an update from BenefitLink last week regarding these states. The issue is some states do not automatically conform to new IRS laws. These states may not recognize the increase in limits for deferrals, catch-up contributions for over age 50, etc. http://www.americanbenefitscouncil.org/iss...stateupdate.htm

Thank You

Thank you for your responses. Is there a specific cite for this? I went to the IRS website and searched for "matching catch-up contributions acp test" and didn't get any hits. Wouldn't matching the catch-up lead to a non-discriminatory match? HCE defers $12,000 (only $11,000 counts for deferral purposes) and gets a $6,000 match. This is more than 50% up to 6%.

Suppose Susan, age 60, earns in excess of $200,000 during 2002 and defers $12,000 ($11,000 in deferrals and $1,000 catch-up). The company match is 50% up to 6%. What is Susan's match? $5,500 (50% of $11,000) or $6,000 (50% of $12,000) Is this a document specific question?

I think it is ok to reamortize and not issue a 1099. KIP KRAUS- I would like to know why the loan couldn't be reamortized for two years from this point forward since it wouldn't extend beyond the 5 year maximum. I do think the interest would have to be calculated from the original loan date and incorporated in the outstanding balance.

RLL- How would you suggest lkmcgivney correct the "over diversification amounts"?

Why didn't the affected participant say anything about the loan repayments not coming out of their paycheck?

I too am interested in more information on the DB-K. I searched the ASPA website and the only item found is the link Dave has included above to Craig Hoffman's testimony.

I suggest you search the Message Boards for information regarding forcing payouts. I believe this topic has been addressed many times in the past with lots of good suggestions.

There is good information on this topic in the ERISA Outline Book.

Did you ask this question under the Who's the Employer Q&A board? This is a good question for Derrin Watson.

And I'll bet that Blinky has resource materials in his office that he can refer to as needed.

Company A sponsors an ESOP with match and a 401(k) Plan. Plan Year End 3/31. Company B sponsors 401(k) plan with a match. Plan Year End 12/31. Company A bought Company B 1/1/00. Company B employees employed 12/31/99 were allowed into the ESOP as of 1/1/00. The plans are being merged 1/1/02. This merger creates a short plan year for Company B employees and their 401(k) plan for 3/31/02. What can be done for the Company B 401(k) annual additions testing? The deferrals, match, and compensation will all be from the period 1/1/02-3/31/02. Whereas the ESOP contribution will be based on 12 months of compensation (4/1/01 - 3/31/02). If the test is calculated in this manner participants could fail the annual additions test with just their ESOP contribution. (10% of $170,000 = $17,000 which exceeds the $10,000 maximum under the short plan year.) Is there a way to work this situation? Can Company B set the limitation year for the 401(k) Plan to the 12 month period? Are there other options?

If you met the vesting requirements for last year you will gain another year of credit for vesting. And therefore move up on the vesting schedule. In some instances you could also recieve additional contributions. Does the plan require you be there on the last day to receive a contribution? Do you meet the plan definition for normal retirement or early retirement (if available)?

Generally, yes. The ESOP value for the allocation date cannot be determined until after the share value is calculated. For privately held companies this can rarely be completed within 60 days after the end of the plan year.

If you did not receive your distribution prior to the last day of the plan year the plan is correct in waiting until the 11/30/01 allocation is complete. This insures that all persons receiving distributions get their share of any earnings or losses that accrued through the end of the plan year. Keep in mind if the share price goes up you will receive a larger distribution.

http://www.esopassociation.org/gov/enron.html Here is a link to The ESOP Association website.

Here is one possibility: 1/14/2002: The Apparent Rush to Indict and Limit Employee Ownership Through 401(k) Plans and ESOPs (National Center for Employee Ownership) In the wake of the Enron collapse, attorney David Johanson argues that there is nothing inherently wrong with employee ownership, and restrictions on how much company stock a company plan may hold are not needed. http://www.nceo.org/columns/dj21.html

There are lots of websites offering information on how to ask for a raise. (Monster.com comes to mind)

The TPA's I have worked for were TPA's not trustees or fiduciary's.