k man

assuming notice is given timely, when is the latest time the employer has to actually adopt the safe harbor plan amendment? in this case the plan is an existing 401(k).

then the answer is not a termination per se. just start the new plan and merge the old one into the new one.

not yet but the changes have not been made either. do you think giving notice of the change with the ability to opt out is sufficient? bear in mind there is no need for a sarbanes oxley notice.

The possible problem arrises if you for example change the fund mix in the balanced model and the participants are not given the opportunity to elect the revised version of the model (they would remain invested in the model). I am referring to a very subtle change from say 20% of one fund to 25% of the fund. does this violate the opportunity to excercise control requirement of the 404© regulations?

i say there is nothing in the code that prohibits company's from terminating one 401(k) plan and starting another 401(k) plan in the same year. i have some "old timers" in my office that seem to recall something that may have prohibited this in the past. i have told them the only restrictions are the successor plan rules which place restrictions on distributions. can anyone confirm that my opinion is correct?

safe harbor PS.

blinky, i dont believe they are getting another non elective contribution (besides the safe harbor PS). does the fact that they are getting the safe harbor ps trigger the gateway regardless of whether they satisfy the allocation condtions> is this in the regs or a notice and if so do you have a cite?

the plan is cross tested safe harbor 401(k) and top heavy. the participants in question are terminees that have not satisified the plans allocation conditions (1000 hours and last day rule). do the terminated participants receive the gateway contribution?

can you wind up something that no longer exists. the corp has been dissolved for over a year. wdik, the attorney was assuming the role of plan administrator but there is nothing that says he cant terminate the engagement unilaterally. i can see your point if he was retained for the purpose of winding up the pension plan he would be violating the terms of his engagement.

the attorney does not want to sign because of potential liability issues. go figure. the plan has already been paid out so what kind of liability could he face for this single act?

i dont think we need the DOL. we need someone to sign the 5500.

sponsor company has dissolved. an attorney for the sponsor had assumed role of plan administrator but now wants to resign. we need someone to sign 5500's. the plan document allows PA to resign and says duties revert to employer. however, there is no employer. anyone know what to do? basically we need someone to sign the 5500. the plan has already been paid out.

Is there any reason why a participant should not be able to get a hardship distribution during a pending termination. essentially a 5310 has been filed with the IRS and the plan is being reviewed. I dont see any reason why not but i was curious if you all shared my view.

i dont see why you would make the distinction. i believe participant investment advice could always be billed to the participant. it is never a settlor function in my opinion.

our office seems to think the deadline is 12 months from the last day of the plan year for which the plan is determined to be top heavy. frankly i cant find either this deadline or the other one you mention in the code.

Plan is determined to be top heavy for 2003 plan year. When must an employer make the top heavy contribution (please include authority)?

what do you think about mistake in fact. erisa 403

if you treat like 402(g) excess you then you forfeit earnings, correct? someone in the office wants to treat it as a mistake in fact. i dont think it is this but there is not much information on mistake in fact contributions.

how do you handle people on H1B1 visa's. I think they are resident aliens which means they must be excluded under another classification besides the stautory nonresident alien exclusion.

does anyone have any sample language for an RIA service agreement for participant directed plans?

client discovered after the money had been deducted from paycheck and remitted to the plan. do you treat this like an excess deferral under 402(g) or is there some other way to return the money?

Under the modified regs that came are you still required to give 90 days notice when removing this benefit?

take it one step further - what if the employer knows the employee is going to stop repayment of the loan soon after taking it? does he have an obligation to protect plan assets. on the other hand does the fact that the loan is secured by the account balance negate this concern?

be careful to review the power of attorney document carefully. i had a case where the POA document specifically stated that the POA would have the power to designate the beneficiary but not to change a previously designated beneficiary.

can a plan institute a creditworthiness requirement when deciding whether or not to issue a loan? the regs say there must be adequate security but if the account this is satisfied if the loans is secured by the participant's account balance. does this in effect satisfy any collateral requirement?