K2retire

Nope -- it was from reversing an incorrect contribution deposit.

Ironically, I'm being told by a large record keeper that an unallocated account can only be used for fees -- not contributions.

If the employees do not have the option of staying with Corporation A, I would agree.

If there are NHCEs who would have received more match if calculated on annual pay, do you end up with a benefits, rights and features issue?

Isn't that one of the Enhanced Safe Harbor Match options?

In my experience call center employees, even at very large record keepers, are typically the least experienced and least knowledgeable employees. I am not surprised that someone would get an incorrect initial answer. The trick is to move up the ladder to someone who actually knows what they're talking about.

I know that one of the largest record keepers requires the use of elapsed time on all of their bundled plans. If this is the same one, you may not be able to get them to budge.

I agree -- but I would raise the question with the client before accepting either. Often it is something they haven't considered and the date on the census may not reflect what was supposed to happen.

The record keeper is wrong. You can work every hour of the year, but you never earn more than 1 Year of Service in a 12 month period. Their programming may have problems with it, but that is something they should be able to fix.

Good for you!

But the person deferring 5 or 6% would be due a correction.

No, just trying to negotiate to close the investigation and get rid of the asset so that the plan can be terminated.

Or it might not. We have a similar situation and the DOL investigator assigned to this investigate plan has been refusing to allow that since 2014.

Welcome back!

Or use a QNEC for the contribution that you need to vest.

Even if the buyer was already the majority owner prior to the sale?

Given the fact that the Key Guaranteed Portfolio Fund has consistently paid significantly more than prevailing money market fund rates, this suit mystifies me. Are they suggesting that there be no such option?

Check the SPD carefully about payout terms. I work with one that will not allow any distributions until 5 years after the employee (not the alternate payee) has terminated employment. The good news is that if something like that is the case, you will receive any investment earnings during that time.

Or are they saying the employee wrote a check for it?

Your document should specify. Our plans that have similar provisions use comp from the match entry date to calculate the match.

I don't know about the earlier scheme. But I do know that Bryan Cave is a large, well respected firm in Missouri. ERISA is only a small part of what they do.

It's my understanding that you only have to do an ADP test in a year in which they amend the plan to remove the safe harbor provisions.

This plan sponsor changed payroll companies at the beginning of 2016 because their prior company was calculating compensation wrong for years. That VCP filing cost them about $50,000 in QNECs and missed match. They are not happy that there are new and different issues with the new provider. It's not rocket science -- why can't payroll companies follow the regs?

All deferral elections are made online through payroll company software. The payroll company claims it is not possible to have different deferral limits based on date of birth, and therefore requires separate elections for deferrals and catch up contributions. Participant elected to defer 7% of pay. That would have yielded a total contribution of $18,740.03, but for the payroll company requirement that catch up be elected separately. (It is not yet known if the participant intended to make a catch up contribution.) Does this require a correction because less than 7% of pay was withheld? Or is it permissible to require a separate online election for catch up contributions?

The client and their prior service providers will have to provide you with the information to do the proper calculations.