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Given a DB/DC combo plan with cross-testing. Plan has: 3.0% Safe harbor 401(k) 4.5 PSP contribution Total Employer contribution = 7.5% which covers: 5.0% Top Heavy 7.5% Gateway Question: Is the "1,000" hours and "end-of-year employment" requirement for PSP employer contribution applicable in this case?

http://www.asppa.org/Document-Vault/Docs/C...px#270,32,Slide 32 Hmm ... according to the ASPPA session above (with IRS Carol Zimmerman as spseaker), it seems the enire excess DB conribution is exempt form excise tax (regardless of self-employment income). I think you are referring to 4972©(6)(b) while the ASPPA was referring to 4972©(7). Thanks.

Accordign to 4972©(7), single employer DB plan is exempt from 10% excise tax on contribution in excess of the maximium? Is this correct? Thanks for all respones.

For form 5300, under Initial Qualification -- Date Plan Signed. For the plan to be effective 1/1/2010, the Date Plan Signed must be on or before 12/31/2010. Is this correct? Thanks for all responses.

Credit is as of end of year; I guess this means I use the eoy age. Thanks.

The pay credit is the maximum alllowable, which is 1/10 of the 415 $ limit at current age using 5.5%. Question: Is the pay credit (which depends on age) based on beginning-of-year age or end-of-year age? For example, for 2010, the boy age is 45 and eoy age is 46. Is the pay credit based on age 45 or 46? Thanks for all responses.

No -- just a CBP. Thanks.

I have a doctor and his wife, both 45 years old. 2 employees ages 30 and 53. The doctor's pay credit is 50% of comp. The spouse is not getting pay credit. The 2 employee are getting 2% pay credit. The plan clearly fails the 401(a)(4) test. Correct? And also fail the ABP test as well. Right? There is no way this plan design passes the nondiscrimination testing. Right? Thanks for all responses.

For the first 10 years of plan participation, we are accruing and deducting 1/10 of the 415 $ limit (ignoring the 150% limit). This generate the large deeuctible contribution. However, assuming no COLA increase in the 415$ limit, after 10 years of participation, we will see a significant reduction in accrual since we are at the 100% 415$ limit. Is this correct? Of couse, future COLA increase in the $195,000 limit will help. Thanks for any response.

Thank!

and ACP test On the deferral I'd assume that's a typo with $16.5K + $5.5K = $22K max. Thanks. Typo.

The combined limit 404(a)(70 limit does not apply if NO employee is a beneficiary in both DB and DC plans. I have a DB plan and a 401(k)/Profit Sharing plan -- all HCEs (i.e. no NHCE in plan). Does the combined limit apply if I have one employee in the DB and the 401(k) deferral, but NOT the PSP and Match? Does the combined limit apply if I have one employee in the DB and the 401(k) Deferral and Match, but NOT the PSP? Thanks for any advice.

Can the 401(k) match exceed the deferral? What is the maximum? For example: Deferral = $22,500 Can the match be $25,000? What is the maximum? Thanks.

A one-person DB plan. Participant, age 55, wants to take distribution and roll it over to a Roth IRA. What are his options? (a) in-service distribution? (not possible since he is less than NRA) (b) terminate plan? (is it possible to establish a new plan in the future?) Any other options? Thanks.

Got it. Thanks.

Thanks. There is nothing in the document that precludes entry dates preceding the end of the 12-month period. I am still not clear what is wrong with my analysis. I am going to re-state my argument in 4 statements. (1) Date he completes one year of service is 11/30/2010. (2) Plan year that coincides with 11/30/2010 is 2010. (3) Employee is eligible to participate on the first or seventh month of that plan year (2010) (4) Therefore, employee can participate on 1/1/2010. Which of the above 4 statements is wrong? Thanks again.

Plan Year = Calendar Year Eligibility: Employee shall be eligible to make deferrals on the first day of the first month or seventh month of the Plan Year coincident with or next following the date … he completes one Year of Eligibility Service; One Year of Eligibility Service is 12 months period beginning with employment date during which he completes 1000 hours of service. Employees hired on 11/1/2009. Complete 1000 hours on July 1, 2010. Question: When can employee start participating? Analysis: He will complete a Year of Service on 11/30/2010. The Plan Year that is "coincident with" the date he complete one year of Service is 2010. Conclusion: He can enter the plan on 1/1/2010 because that is the start of the Plan Year (2010) that coincides with his completion of a year of service. Comments? Thanks.

If your plan offsets T-H for match received, yes on P#1 & P#2. Is it better to switch? Maybe. Depends on turnover and what you are providing. I'd guess that a 3% NE safe-harbor would problably work best with 2% t-h and additional gateway if needed but without seeing demographics and knowing the employer's objectives it's just a guess. Thanks!

Sponsor has top-heavy DB + DC combo DC is made up of deferral + safe-harbor match + discretionary profit sharing Safe-harbor match = 3% + 50% of next 2% (max of 4%) Since the combo is TH, all employees must get 5% DC contribution Does this mean that the discretionary profit sharing contribution must make up the difference so that the match + PSP = 5% For example, Participant #1 does not have deferral, and therefore no match. this mean the PSP is 5%? Participant #2 has 6% deferral with 4% match. therefor his PSP is PSP 1%? (In this situation, is it better to remove the match and move to a non-elective 5% PSP contribution for all participants?)

I have a Cash Balance Plan that has different compensation credit for different employee groups. There is no DC plan involved. Is it correct that there is no gateway test to comply? Thanks.

Is there any difference between SF line 7 (boy) asset and SB line 2 asset?

Is there a difference between 5500-SF Line 7 assets (boy) and Schedule SB line 2 assets?

Is an IRS approval required? Or is the corporate resolution plus signed Amendment enough.

The objective is to change the benefit formula. (1) What is the procedure to amend the plan? (Corporate resolution, interim amendment ... ?) (2) Is there a possibility IRS will reject the amendment? thanks.

Is the Cash Balance "compensation credit" fixed by formula per plan document? Or is there a "minimum" and "maximum" contribution amounts that allows flexibility for plan sponsor (just like traditional DB plan)?