K2retire

CSRS comes to mind.

Generally speaking, in order to take any money from a plan while you are still employed you must meet certain IRS requirements. Some typical examples are if you're over age 59 1/2, or if you have a hardship such as medical bills or a pending foreclosure. Even if you meet the IRS requirements, plans are not required to let you withdraw funds while you are still employed by the plan sponsor. Some may allow hardship withdrawals but not withdrawals over age 59 1/2, for example. Your first step is to look at the Summary Plan Description. It will tell you the reasons that you may be allowed to withdraw your balance and which sources of fund may or may not be withdrawn. If you don't have a copy, your employer should be able to get you one.

It is appropriate and usual for the employer to not advise you which way to go. There are too many options and they don't want to take on the liability of making a recommendation. Ant they probably aren't trained in that sort of financial planning anyway. But if you have a domestic relations order that they have acknowledged as a QDRO, I am troubled by the idea that they won't talk to you without your ex's consent. As an 'alternate payee" you have rights under the plan that are not dependent upon his consent. Your attorney should check on that as well.

Mine is intermittent also. Curiously it is only a problem on my home computer -- not at work. That hints that it could be a browser issue.

That sounds like they pay me!!

And what do you do if it is a QACA?

A rehired employee who was previously a participant in the plan is rehired. The document requires the person to immediately resume participation in the plan. But the auto enrollment provision that was added to the plan since the participant left requires advance notice. Do you simply offer the option to defer immediately, wait for the expiration of the notice period and then auto enroll them? If so, how do you answer the auditor's question about why the deferral rate is less than the stated percentage for automatic enrollment?

I am normally a huge fan of reward cards, rebates coupons, etc. While it is clear that something needs to be done to increase most employees' deferral rates, the possibility for errors seems far greater than the possible rewards. For example, if a computer glitch misses a change for one pay period, what sort of liability has been created for a correction?

Be sure everyone involved knows that non-US citizen is not necessarily the same as the plan's definition of Non-Resident Alien.

The whole point of incorporating a business is so that the owners are shielded from personal liability for corporate debts. It is possible that the corporation received money from the sale that should have gone to pay debts rather than to the remaining share holder. It is also possible that the debts exceeded to sale proceeds. If the corporation has been dissolved, the Secretary of State will have record of that fact.

Number 1 and number should be the same.

Keep in mind that some statements label safe harbor contributions as QNECs as well. If that is the case, it may not be a correction at all.

I guess it depends on the question. The loan is not in default until the end of the cure period. But the plan has a prohibited transaction when the 5 year loan limit is exceeded.

Particularly since they were both segregated and out of the employer's control on a timely basis.

And yet, based on this discussion, it clearly is not!

If he's truly trying to shelter personal assets from the bankruptcy, he ought to be trying to keep his balance in the plan as long as possible. In many states IRAs are subject to creditor claims.

While *I* prefer the term "Safe Harbor Nonelective Contribution", the IRS uses "qualified nonelective contribution" in the regs. FWIW. There are reasons that people think they try to make things more confusing than necessary. This is just one example!

Thank you for reminding people of that. I see too many cases where SHNE contributions are called QNECs and it makes me crazy!

Is the participant who wants to make this change trying to avoid having to pay the income tax that a child support QDRO would trigger?

I've run into it also. In one case it was explained to me that because the participant information was also coming from the prior provider no participant account could be established until the assets transferred.

Client thought a "plan participant" was only someone with a balance and never reported eligible, non-deferring participants to the TPA. The prior TPA never questioned that 100% of the employees were deferring into the 403(b) plan and filed 5500-SFs each year. In fact, there were several hundred eligible employees. We are working with the client to get the audits done to amend the past filings. Although we will be asking for a waiver of the penalty, I'd like to be able to give them an idea of what it might be. I haven't been able to find this detail on the EBSA website.

Can a safe harbor 401(k) plan that intends to meet both the ADP and ACP safe harbors allow employee after tax contributions?

The initial requirement for QSLOB is at least 50 employees in each. Good Luck! But many advisers are unaware of that little detail!

The other risk is that the auditor who pointed it out will include it in the audit report for the 5500 as an uncorrected issue.

A participant is someone who has met the plan's eligibility requirements and passed their plan entry date. It is unrelated to whether or not the individual has an account balance.