GMK

I'll second that.

FWIW, what I'd look into are: 1. As you know, the adoption agreement and plan document trump the SPD. If the SPD is wrong (which depends on the details in the plan doc/agreement), fix it. 2. Were the others who came during the plan year also from an affiliated company? Does the plan doc have different eligibility for employees coming from an affiliate or otherwise treat them differently?

Thank you, Marcus, for correcting my cover-your-assets approach. (We don't deal with redemptions by the ESOP. The company buys the distributed shares.) I agree that the ESOP is not considered a broker in this case. I also agree that for participants who can't or don't use NUA tax treatment (which in our case is essentially everyone), the 1099-B serves no purpose for distributions that are immediately redeemed and adds a lot of unnecessary 1040 form-filling-out.

I agree with Mr. Piquet and Mr. Guy for distributions in cash that simply keep the shares in the ESOP. What about case where the ESOP distributes shares, and the ESOP buys shares from shareholders, because of a Put option and/or as the company's preferred method of redeeming shares? FWIW, I think this is still just a 1099-R unless the ESOP's buying of shares is not random. That is, if the ESOP can more or less expect to be buying shares from shareholders nearly every year, then I'd issue 1099-B's for the ESOP's stock buys. And if you issue both 1099-R's and -B's, give the participants enough information so they aren't taxed twice on the same money (the distribution and the buy back).

This must be the source of the age old question: If a man is in the woods alone, and there's no woman around, and he says something, is he still wrong? [The answer from about half the people I ask is, "YES!" Men seem to be less certain. ]

From the Prior of Little Dunmow ... ah, but of course you already knew that. http://www.phrases.org.uk/meanings/bring-home-the-bacon.html

I agree with Austin.

This article may clear things up regarding special enrollments: http://www.familiesusa.org/assets/pdfs/spe...opportunity.pdf Generally, special enrollments are for enrolling in a plan for which you are eligible, but where you did not previously enroll for one of the reasons listed in the article. You may be eligible for a low-income insurance program through the state in which you live, but it appears that COBRA is probably your only available option under your father's plan.

If you're saying that you round the percentage to 2 decimal places, for example, deferral/pay = 0.04454 becomes 4.45%, then you are probably never off even a penny, compared to using all the decimal places in the deferral to pay ratio. If you are saying that 0.04454 becomes 0.04 (4%), then that will likely reduce the match. Similarly, in this case, 0.0451 becomes 5%, and you increase the match. Consistency is important, so I'd probably continue using whatever you've been doing, or make a one time change to "improve" the procedure if that seems appropriate. Once upon a time, more decimal places was more work. Now, it's easier to let the computer use all its decimal places and round the final match amount.

Is the answer in Sec. 3 on page 2 of the bill? http://nebraskalegislature.gov/FloorDocs/1.../Slip/LB551.pdf

I think that sums it up nicely. And you're right, no one seems to be tooting the horns about about this. Thanks for your post here. We added a paragraph in our wrap doc.

You got me looking into this. One relevant link I found is: http://www.law.cornell.edu/cfr/text/29/2520.104-20 Item (b)(3)(ii) in the link does not mention the SPD, but it seems to require some kind of informing of participants if you don't want to file a 5500 for the small plan. We are reviewing how we plan to do the informing. The allocation design can be sensible, according to EBSA 2011-04, so that's good.

Who thought it would be that easy? Now, where did I put my Magic 8 Ball?

um ... notice the classic "to" and "from" reversal

Your QDRO will specify whatever you and your husband agree to. There is no fixed set of rules or answers to who gets what with a QDRO. You can request a copy of the plan's QDRO procedure. You have a right to receive a copy of the QDRO procedure from the plan. At the same time, ask for a copy of the plan's Summary Plan Description (SPD). These documents won't tell you what you get, but they will inform you about what happens when the QDRO is filed and generally what payment options you have. If you choose to get some of the annuity, it will pay you for life. If you choose to get some of the ESOP balance, you can take a portion of it as cash and roll the rest into an IRA. The part that is paid to you in cash is taxable as ordinary income in the year you receive it. The part you roll over to an IRA is not taxed now. It is taxed when you take it out of the IRA, which can be on an 'as you need it' basis. How long there's money in the IRA will depend on how fast you take it out of the IRA. toolkit's advice to get some professional advice is good. Just be sure that your advisor is familiar with QDRO's. And I would suggest that you find a divorce lawyer who understands QDRO's, too, or has a partner that can advise on QDRO's.

Does the business apply here where you can take pre-1987 after-tax contributions without having to do the pro rata that you have to do for post-1986 contributions?

As best as I can tell, the easiest way to increase participation is to have automatic enrollment. Instead of making employees fill out a form to participate, have them fill out a form to opt out. Be sure they understand that they will be enrolled at the default deferral percentage unless they file an opt-out form. And a decent match will help ensure their continued participation.

We saw a fair amount of this in our latest RFP. Some of the fund list contortions were impressive, when they tried to get a decent all-in rate and keep rev sharing up there. It didn't get us to change our plan, which already had transparent fees, but it was interesting to see.

I think you are correct. Plan sponsors already know how much they pay you themselves and from the plan. The disclosures are to let us know your other sources of revenue related to the Plan. Now, if you don't get any indirect and don't have to send a disclosure, let me suggest that you send a form letter to that effect to the plan sponsors. It will give the sponsor a document showing that you know what's going on, and it could save you some telephone time trying to explain why you didn't send the sponsor a fee disclosure. Just a thought.

My understanding is that disparate impact is an unproportional adverse impact on the protected group compared to the unprotected group. In this case, it looks like the protected group is treated the same (40 to 50 year olds) as or better (over 50's) than the unprotected group (under age 40). For my future reference, are you saying that the analysis also applies to subgroups within the protected group (40 and over) without regard to the unprotected group? E.g., the impact of a policy on an employee age 60 cannot be disproportionately better than the impact of that policy on an employee age 42? Just wondering, so I know what's correct if the issue ever comes up. Thanks.

FWIW, some general thoughts: I second the idea of using FMLA as the model for setting up your leave policy. You don't have to include all or even any of the features now, but if your policy is similar, it will be easier to adopt FMLA when you grow to 50 people. For reference, significant features of FMLA are that: - the leave is job-protected. Employees are assured that they will return to their previous job (or one of identical pay, importance, etc.) - health insurance coverage continues during the leave if the employee pays her/his share of the premiums. If health coverage stops during the leave, eligibility for coverage is restored upon return from FMLA leave. - FMLA leave is unpaid, but employees can generally substitute paid leave they have accumulated to receive pay during the leave. There can be restrictions on when paid sick leave can be used, but that's a detail. What you want to do is decide how much time you are willing to allow for maternity leave (which becomes maternity/paternity leave under FMLA), if any of it will be paid leave (FMLA is unpaid) and/or if employees can use their other paid time (vacation, sick, personal) during the leave. You'll want to consider whether to job protect the leave (your choice) and whether you will restore health coverage if there is a break in coverage (talk to the insurer about this). You are pretty much free to set the policy as you wish, as long as you apply it in a non-discriminatory manner. Maternity leave can be a plus for attracting job applicants. An extended leave may or may not disrupt your work flow. The length of the leave you allow may be from a few days to several weeks. While federal FMLA is 12 weeks of leave per year for any and all reasons combined, some states have FMLA's with other formats. Your neighbors in Wisconsin, for example, have a state policy with 6 weeks of leave for birth or adoption and 2 weeks for serious medical conditions.

Auto enroll increases participation, and it is easy to administer (without extra policies and procedures). People understand auto enrollment, and they will opt out if they want or need to.

If you permit the hardship distribution, consider an escrow, in case something falls through. See also: http://benefitslink.com/boards/index.php?showtopic=48405

I think that everyone is with you on that, Mr. Poje (... well, in Truth, maybe everybody but one). Congrats and a big THANK YOU to Dave.

I strongly suggest that you read the previous post (you won't get better advice anywhere) and do what Mr. Bozek has outlined.