rcline46

VLAD - notice that 'limitation year' if what you are looking for, and all documents defined limitation year, including the first year of a plan.

Thank you!

I remember that after PPA, the plan termination date was to be treated as a plan year end and certain items had to be pro-rated (compensation, deferrals and such). Now I cannot find ANYTHING that backs up my memory! Not only that, I am being challenged by an attorney. HELP!!!! Thanks all.

There should be a section in the plan document covering participating employers. Start there for what can and cannot be done.

less than 10 years means you use assumed 10 years and it does not matter.

Spinoff would allow distributions - sort of. If a 401(k) other items rule, But not the separation service.

Read the original document on what to do if a company leaves the MEP plan. There are probably very specific steps to be taken. Remember there is no separation from service here, so the old plan has no way to make a distribution. (Hint - that would require a spin-off).

IMNSHO - the insurance salesman should be responsible for ALL of the items mentioned by BIRD, the agent is the one who made all of the commission!

Can I borrow 50% of my balance as of July 1, 2008? 2009? 2012? If you grant ANY slide, then how long? Best bet is 50% on day liquidation occurs.

unless parent and child are partners.

It would appear that they do not control the for profit at 20% ownership, and so no controlled group.

TPA April - how can there be a match when there is no deferral? You know this is actually written into the document - the match is computed on a (payroll, monthly, quarterly, annual) basis. What you are wanting is a true up match, and either the document must state a true up, or the match must be on an annual basis.

We installed our first 401(k) in 1983, and probably been refuting this kind of argument since TRA 86. We also still run across CPAs who say that sole props and partners cannot defer at all because they do not have W-2 income. I have gotten old, tired, and grumpy (quiet Tom Poje!) about this because people cannot produce facts (code or regulations) to support their cause. If you are hired because of your expertise and then the client wishes to over-rule you - well you know where you stand.....

The match cap should be set the same way as the 402(g) limit, max $ amount. So if you have a discretionary match, and increase it mid-year, the payroll system self-adjusts.

Why is it that the pension community has to prove itself all the time. Why not make the 'experts' cite code and section for their incorrect positions?

benefitsguru - assuming you are correct, then the provider of the document should be sued for malpractice and reported to the DOL.

We do the Schedule A the same as for a DB plan or any other plan.

Why the concern? the PW contributions are NOT deferrals and are of no consequence. Why not let them into the QACA plan?

HCE has nothing to do with Top Heavy. It has to do with KEY and non-KEY. Frequently HCEs are also KEY but not always.

Remember that the '30 day' is not what you think. The rule is that you must give notices within a 'reasonable' period, and 30 days is considered 'reasonable'. this does not rule out other timing to be reasonable under the circumstances. If questioned you will have to defend other timing.

A specific window - whether for retirement, distributions or anything else, which was stated to be limited at the time presented, does not create a protected class of benefits. If done repeatedly it might create an expectation, but not if only done once.

1. who thinks up these things? 2. make that person, lawyer or not, give a written opinion of why its ok or not

You cannot change a 401(k) to a 403(b). THe 401(k) must be terminated, distributed (or rolled over) and a 403(b) started as a new plan.

Have them look CAREFULLY at the IRS letter. It may have a check-off box for the DFVCP program, the ones sent to our clients do, and we get it filed before the response date.

This is a 403(b) plan. If they let this person contribute, then they are REQUIRED to let ALL employees with less than 20 hours to contribute. Sorry, the person moved from an eligible to an ineligible class with the same results you would get in a 401(a) plan.