mphs77

What does the Plan document say, prior year testing or current year testing?

Are you sure they can legally sponsor a 401(k) Plan as you have described?

Is the seller one of the employees who are to receive the $2,500,000 in accrued benefits? If so, how much? Will the benefits going t other Employees exceed the taxes that would have been paid if the transaction was completely cash? Inquiring minds want to know.

Is there any safe harbor contribution which can be made that excludes ACP testing for a Plan which is allowing voluntary after-tax employee contributions? We have an Employer who is making a 3% Safe Harbor non-elective contribution (applied only for ADP purposes) with an HCE making such a voluntary after-tax contribution and it is causing an issue with the potential ACP test. Thanks ahead of time for any guidance you can provide.

Of course, in my much younger days, I believed the quote to be... "I drink, therefore I am...."

Are they passing coverage and non-discrimination testing while excluding non-adopting "members"?

In addendum, a line I have heard all my life.... "I'm from Texas, where we elect our crooks to high office so someone will keep an eye on them."

One thing to note are there minor children involved? If so, the ex spouse could still be considered an HCE during the time the child is a mnor.

When QDROs first came on the scene, I had a plan with a participant who's QDRO was based on a court order. This court order held that the ex-spouse was due 50% of the account balance as of a particular date and the children of the marriage were due the other 50%. So I have seen it happen. For item 2, I would think any difference between the QDRO and the Judgment for Divorce would be another lawsuit waiting to happen.

Disagree here. Since loans can be funded only from deferrals (at least that's how I read the set up), the loan was from the deferral account so of their 10,000 in deferrals they have already received $6,000 of it (remember no gains), leaving only $4,000 left for the hardship.

Sounds like someone is in serious need of some medication..... I just don't know if it is the "Poj" or myself.

I stand corrected. I guess my memory is not what it used to be......due to too many beer nights myself I am sure!

It was not Ten Cent Beer Night in Cleveland on that fateful night in 1974 (against the Texas Rangers) it was Nickel Beer night. And the rest was history......

I believe the Section 179 deduction only applies to General Partners.

I would be tempted to ask if there is a partnership agreement as to the allocation of pension costs for the year.