AndyH

WDIK needs to add this to his greatest hits archive collection. Harwood and Willie must be upset. This brings back memories of Blinky's 5500 filing order thread.

Yes and yes.

No. Your 3% SHNEC is a safe harbor design. No 401(a)(4) testing. Your 410(b) nonelective ratio/percentage is 100%. No further 410(b) testing of the nonelective. Your 401(k) presumably passes r/p at 100%. No further 410(b) testing of that.

Well, well, welcome back to the big yellow guy. I agree, but don't see how this could normally be a problem since in a db/dc combo, it is most often the db that is HCE heavy, and that has the later NRD.

It would seem that we need to alter the meaning of January 1 as well, to be PC: http://www.simpletoremember.com/vitals/NewYearsHistory.htm

We've got 4.73% 30 Year and Cl range 5.20-5.78 PFEA 90% to 100% and 4.38% 90% pre-PFEA. I don't collect these personally so I'm not sure of the source and the office is a bit empty but I thought I'd pass this along.

Well done, Fredperson.

Nope. You cannot restructure to avoid the gateways, that's all.

A target benefit plan is one that, for example, might allow allow one to get to Hawaii and drop the pension "habit".

Somebody cooked Blinky? He's not been heard from since this thread.

My $4 says that a target benefit plan, done properly, is ++50% more work than a new comp plan because of the need for comp averaging and prior year data tracking.

Thanks for the feedback Tom. The plan would be a match. Isn't that an ACP issue?

Non profit wants to establish a safe harbor matching k plan eff 7/1/2006 that also may include a discretionary nonelective contribution. Questions: (1) Is a mid year safe harbor k permitted even though employees had non-ERISA 403(b) available to them before? (2) Can the plan be effective 1/1, but SHMatch eff 7/1/06 to eliminate proration of 415 and 401(a)(17) limits for short plan year? Thanks for any help.

This is guesswork without more info. How many HCEs are there and what are they getting? Why can't it be general tested?

I don't think you have anything to test. You have two component plans, as Tom said, each of which by itself is a safe harbor. Each individual in each component plan plan is treated as not excludable and not benefitting in the other component plan. You have restructured the plan into to component plans each of which (I presume) pass 410(b) and 401(a)(4) as a safe harbor, albeit on a restructured basis. I'm not sure what this exercise accomplished but it is as you described, modified here.

I have no idea what the initial question was, but, Nate, your most recent comments are correct if that is what you are seeking to confirm. But you did need to reach the safe harbor percentage, let us not forget, without cross testing.

Don't you feel famous being quoted?

Good grief. Briefly qoting GBurns, "Who or what determines" these amounts? Joe the small business owner?

Failsafe language might say, for example, that in the event that the ratio/percentage test is not satisfied, the employer is obligated to do X,Y, Z (make a contribution to all NHCEs to pass r/p for example) so that the ratio/percentage test is safisfied. Notice you've got a 62.5% r/p so this would be a candidate. But I don't think the Corbel VS would have this.

if the plan does not have langage prohibiting this testing, i.e. includes failsafe language, this sounds ok to me.

Oops. I deleted Tom's reply by accident. Sorry.

Have you tried general testing including cross testing? It has been said that the general test never fails. If you want to lay out more details we could explore the feasibility. It sounds like your best answer.

No, they are apples and oranges.

ombskid, yes, the old and new plans are aggregated for participation and most importantly 415 and presumably service since participation is a definite yes. Susan, Mike Preston gave me his opinion on this issue in a post within the last year if you want to do a search. Blinky told me to "go with your heart". Just one question, though, a new 412(i) plan for a 68 year old?

Interesting points. Well, December 8 has improved slightly. RIP John Lennon and see ya Edgar.