30Rock

Is there a problem with a plan setting a minimum deferral % of lets say 3%? I recall an issue with maybe effective opportunity for the NHCE's, but maybe there is a range that is considered reasonable? Have others encountered this issue?

Do you think any type of fiduciary implications come into play under state law? Could the employer be held liable by the IRS or a participant claim that the employer had the duty to monitor the loan program and the loan limits, and by not doing so have jeopardized their retirement savings? We have employers who refuse to monitor loans when there are multiple vendors, and I am wanting to know if they do not have some liability? Appreciate any guidance!

I have a plan where the current document allows for withdrawals of rollover monies at any time. Client wants to eliminate all in service distributions. I realize that this is a protected benefit but am confused on how to protect it - do I protect the right to in service withdrawals or rollovers for all participants, even if they have never rolled money in, if so this means that I can really only eliminate the right for new hires after the date of the restatement?

What fiduciary obligations if any does the sponsor of a governmental 457b in Florida have regarding offering loans when there is more than one vendor and the vendors are not monitoring the loan limits? If a participant exceeds the loan limit under 72(p) there are tax consequences to the participant. What about for the employer - prohibited transaction rules under ERISA and the Code do not apply. All I can think of would be state law fiduciary issues regarding not monitoring the loan program and thereby jeoparding participants' retirement savings? Any ideas?

I realize that the Service Members Civil Relief Act (SCRA) states that if the loan is greater than 6% the service member can send a notice upon return from duty asking to lower the loan rate to 6%. We have a plan sponsor trying to put a spin on this to say can the rate be lower than 6%. SCRA says the loan rate cannot exceed 6%. My view is that this only helps if lets say the original loan is 9% interest and upon return from military leave he wants to reduce it to 6% this is ok. But lower than 6%??

I think you know oldman

We have a plan that has unallocated forfeiture money even though the plan was frozen as of 12/31/2007. I assume the amendment did not address forfeitures and neither did the recordkeeping system. At this point, should they be reallocated, and how? To all participants with an account on 12/31/2007 even if they have by now taken a distribution, or can we look at active accounts today?

Do unreimbursed medical expenses have to be unforeseeable in order to qualify for a hardship withdrawal under a 457b governmental plan?

I thought a top hat plan became an ineligible plan if the 457 limit was exceeded for a calendar year? Is there even an approved correction program for top hat plans?

Hi If the 402g limit is exceeded by 16 cents, what is the correction? Can the $75 de minimus rule under Section 6.02(5)(b) of Reve Proc 2008-50 EPCRS be applied since it will cost more in payment fees to distribute the excess than 16 cents? Should the participant include in his 1040 as taxable income, or is there a de minimus income tax rule too? thanks!

Hi I know this is an old link but I have a similar question. If the 402g limit is exceeded by 16 cents, what is the correction? Can the $75 de minimus rule be applied since it will cost more to distribute the 16 cents? Should the participant include in his 1040 as taxable income, or is there a de minimus income tax rule too? thanks!

I am not clear on how you satisfy universal availability? Assuming the For Profit has full time employees that cannot be excluded under the 20 hour a week/1000 hour per year rule, and do not meet the other exclusions, how do you satisfy UA if the For Profit does not have a 401k plan?

Is there a problem for contributing for 2009? If this is a calendar year plan, the 990 deadline is May 15, and the 415 deadline is not until October 15th.

What is the deadline for a Cycle E filer to adopt a pre approved plan if they are currently on an individually designed plan? If they sign an 8905 do they have until Jan 31, 2011 the cycle E deadline or do they have to adopt the plan by April 31, 2010? Thanks!!