rcline46

Rev Proc 2013-12 - look up loan fixes, follow the rules.

Never - using elapsed time (and read your doc on 'Period of Service' - I do not see any employment year (required for elapsed time) in which the person worked 6 months.

If A bought the assets of B then there is no controlled group. Something is not right in the information. Under your scenario, B still has its owners and employers and B's owners are not related to A's owners. Something is just not computing.

Is the plan covered by PBGC? You may need an actuary to properly answer this question as there are many variables in the mix.

Forensic anthropology

Asset sale? Then all 'acquired' employees are NEW HIRES, and therefore have no HCE history.

I think you are way off. You need to speak with an actuary based on my earlier discussion. If you look at the schedule SB there is no way to add insurance premium to the annual TNC to get a bigger deduction.

It is my understanding from the ASPPA conference 2 or 3 years ago that insurance premiums are now irrelevant. You fund the TNC (plus cushion) only. Insurance premiums are paid from assets, and current 'terminal reserve' (cash value) is an asset of the plan, and that is it. No adding in premium for higher contributions. Insurance is not addressed in PPA funding rules. I bet the insurance agent is not an actuary, and no acturary reviewed the calculations.

It may be a matter of anticipation. We publish a 'standard' of 10 to 15 business days to process any distribution, even though our turnaround time is quicker than that. However, if we receive forms not countersigned by a proper person from the employer/Plan Administrator, the form must be sent back for signatures and consequently, the process could be delayed. You should check with your HR/Plan Administrator first to determine the expected time, and follow up with them for timing.

My guess is that the coming increase in the cost of health insurance combined with the loss of personal deductions for the insurance will call a reduction in contributions. This reducuction may be significant, percentage wise, at lower contribution levels. My guess would be in the $5 to $10 range per pay period as people try to maintain their level of take home pay.

Based on what you said, I would see more of a ratio - 73.75% Base and 25.25% bonus, giving 184375 times 6% or 11062.50 base and 65,625 times 3% or 1968.75 for a total of $13,031.35 (if I did the math right). Your case I dont see at all. Some how you are double using the bonus pay to get the $7500 because us already used the the full $250,000 as base pay. How can you use it again?

That issue is addressed in the plan document.

I would think you a Suspension of Benefits notice, which would hold t he benefits plus interest, or start paying the benefits even if not retired. I do not have a cite handy, but I don't think you can stop accruals for someone who is still earning accrual credits. This does not work in a Money Purchase plan so I don't think it would work in a Defined Benefit Plan.

In my opinion, any plan that passes on a general test depends on demographics, and that changes every year. And getting there due to a 414(s) failure would push me to test every year. Not testing is a false savings. (editorial comment coming-) I would think it a sign of a professional to do the testing to prove the plan was in compliance rather than just assuming it was in compliance.

If the distribution fee is reasonable, then this is not a problem. The TPA could even request (in your example) the sponsor make up the difference.

Thanks all. I knew my boss had heard it, but he could not remember where.

Plan established in 1984. We have good documents back to GUST, and evidence (Resolutions and such) further back. Heaven knows if they ever had an LOD, and certainly not since the 80's if at all. Sponsor is submitting to the IRS on termination. The question is - will the IRS demand documents prior to GUST? The client might find something in storange, or maybe not. I thought I heard we could keep the IRS at GUST, but I have not found anything official. THank you all for you thoughts (and maybe prayers!).

Once they become an Intern, they are in an excluded class and cannot defer. Neither can they take a distribution. However, I find it curious that a full time would become an intern. On the surface it smells.

Yes you can, and get a full year deduction.

Why oh Why is there a 'short year' for the first plan year? This is very unusual. Effective date does not trigger a short year unless the plan is drafted badly.

Also, consider a 401(a) ERISA plan that receives the matching contribution for a non-ERISA 403(b). This is the particular situation that the IRS opines makes the non-ERISA plan 403(b) an ERISA plan, because the plans are paired or linked.

Ahhh, ye olde 'substantial and recurring' rule. Convert the plan to a frozen MPPP, gets rid of the rule.

Austin - only put the match into the 403(b), and freeze the 401(a), so only 1 plan. 401(a) even with 6 year vesting would only last a maximum of 5 more years, maybe less when number of people needing 100% vesting is small. jpod, yes, no ADP test really a big deal, especially when match is capped.

jpod, no ADP testing on the 403(b) is a very good thing. Other minor advantages to a 403(b) usually argue to keeping it alive rather than a 401(k).

You cannot merge or do a trustee to trustee transfer from a 401(a) plan to a 403(b) plan (or vice versa). Best to 'freeze' the 401(a) plan and start the matching contributions in the 403(b) plan, and wait until all are naturally terminated or become 100% vested and then terminate the 401(a) plan.