Earl

have to agree there. Thanks

we all know it is not that hard physically but mentally these guys only think of this once a year and it is reasonable to allow that they can't remember all the details. I am just trying to make it a non-issue. Rather than being a jack ass and sending him a 1099 with $21 of attributed gain because "you forgot to sign the piece of paper. Tsk, Tsk."

do you think it would be ok to have a standing election stating that each VEC deposited to the Plan is to be converted to a Roth account? Or do you think individual elections are needed. (Chasing these guys for a written election each time is rough. And sometimes they make the contribution without telling me.) Thanks

The coverage problem is with the Match. Exclusions are Coaches & teachers who teach only one class. The excluded people are deferral eligible.

403b Plan with immediate eligibility excludes certain classes of employees. 1. Plan fails Ratio Percentage for coverage. Plan document does not specify how to correct coverage failure. Adding one person would pass Ratio Percentage. Can I add 1 person? Do I have to add 1 class? If I can add 1 person, do I have free range who to pick? Should I use "most hours"? Can I use "lowest compensation"? Any thoughts on this? 2. Plan does not specify how to pass coverage, not in Document, not in AAgreement. Can I use either Ratio Percentage or Average Benefits Test? Thank you!

Thanks for your thoughts but related to the issue I found: A plan may not participate in an investment with one made by a related party for the primary purpose of achieving a minimum threshold investment. However, if the plan can independently justify the prudency of the investment, it may be permitted. This is what I am trying to substantiate. Thanks again.

Can a Plan Participant purchase real estate with personal and 401k money? Property would have co-owners, the individual and the plan. (I understand that the interest of either could not be sold to the other.) I thought I remembered reading about doing this and if all income and expenses are split proportionately it was ok but, now that I am being asked, I can't find anything specific on it. And, as a related question caused by client's spending time at an SBA seminar, can that property be leased to the Plan Sponsor? Again I thought I read about leasing property to the plan sponsor but can't find anything. SBA apparently said he could do this. (This one I am sending him to an ERISA attorney to work through.) Any thoughts would be appreciated. Thank you

I hope it was not the attorney that wrote the petition.

the contribution was not made pursuant to a written election to defer under 401k. I would not make the 401k argument regardless of the similarity of the hypothetical result.

Based upon my experiences with the DOL I support the opinion of rcline46. The DOL folks are comically undertrained, uninformed etc. but with potentially frightening power.

Thanks. Not sure what my obligation is when the client says to process distributions. Since I just got fired I guess I will just let them go down with their ship. Probably nothing would ever come of it anyway.

Representative of a MEP just called me and said they want me to terminate the 401k plan I administer, distribute the assets and file a final 5500. Does joining a MEP avoid the 401k distribution/no plan for a year issue? Doesn't sound right to me. Thanks

Thanks very much.

Key employee has accrual and account addition in both plans. New employee is eligible for DC Plan only. Does he get 3% or 5% of pay TH Min? Thank you

Its 1 owner & 2 non-owner with the person in question being the young person in the mix. Regardless he is in AB%T, right? If test otherwise excludible he is out of the NDCT and I can give him 5%, right? But to keep contribution for older employee down I need the kid to pass the NDCT and if he is in that test, he gets Gateway, right? Thanks a lot

PS/401k is immediate and DB is 1 year of service. Participant is in the DC but not the DB Plan. Owner benefits under both plans. Does the DC only participant 1. Get a 3% TH min or 2. Get a 5% TH min or 2. 7.5% gateway Thank you! (Answer is probably on here somewhere but I sure can't find it.)

The document is titled ERISA 403(b) Plan for 501©(3) tax-exempt orgs. They have a separate non-ERISA 403(b) Plan for Affiliated Church Organizations. It has the same option and both, separately, have an option "After completing ____ Years of Eligibility Service with YOS defined as 1,000 hrs. Thanks for your thoughts.

TIAA document has option: After completing ___ consecutive Months of Eligibility Service (no more than 12.) How does this work? Does employee have to work in each of 12 months to become eligible? So if the EE works 5, takes 2 off and then works 5 more and actually works over 1,000 hours; EE is not eligible? This employee would go in the denominator of the coverage fraction but not the numerator? Plan Doc is no help that I can find. "Month of Eligibility Service", if not counting hours, is deemed to be 83 1/3. Didn't think that was a legal equivalency amount. Thanks for any thoughts.

It is a good thing. Now if they would just get off their high horse about applying forfs to SH contributions we would have something.

Seems to me that Appendix B relates to improper exclusion of an employee not failure to auto-enroll. Employee was timely given chance to defer and took no action until late in the year. I don't see how Appendix B would cover failure to implement auto-enrollment. 2015-28 Section 3 would be the closest I can find and I don't see any mention of an off-set. I think Section 3.03(2) applies which covers both failure to implement auto-enrollment and, separately mentioned, improperly excluded employees. (Separately mentioned makes me think App. B really does not apply.) 2015-28 modified App A but not App B. I don't see anything supporting a reduction to limit the QNEC + actual deferrals to the 402g limit.

Participant was supposed to be auto-enrolled 4/1/2014 but was not. Participant self-enrolled in June 2014. Between June and December Participant deferred the 402g limit. Is this person still due a QNEC? I don't find anything specific in the Rev Proc other than "failure to timely implement", which this was, so I think he is due the QNEC. Thanks for any insight/help.

Thanks, that is what I was thinking. Participant is in California. I don't think DP status was changed to "married." In SF that stuff is big news and it seems I would have seen something about it. But if the Participant is being taxed on it, it seems like it would be included in income. HR company is not including it in listing of plan wages. I figure someone a lot smarter than me designed the system but I am not familiar with this issue.

I am told that the client is being told by a consultant that this taxable fringe benefit is not included in wages for the retirement plan. Seems to me that if it is taxable to the individual and included in W-2 it would count. Any insight on this? Thank you!

Does this require a QMAC or just a Match? Vesting is not an issue as I am just boosting employees who are 100% vested anyway. I am increasing from a 10 years of service rate to a 12 years of service rate. Thank you

Just think, "this is one company"