dmb

Ok, now we're getting somewhere. plan will pass the rate group and avg. bfts test. What you're saying is that if there isn't a separate class for "top heavy minimum only" participants, anyone who works less than 1000 hours and entitled to the top heavy minimum would have to get the 8% rather than the 5% gateway. Thanks.

I have a top heavy cross tested ps plan, no 401k plan. The low class is getting 8% of comp to max out owners. There is one participant in the lower class who did not work 1000 hours. After reading prior posts, i'm still a bit confused. Does this participant have to receive 8% of comp allocation or can they receive only the 5% gateway?? Thanks.

Two plans with over 100 participants each merge as of 1/1/02. The assets are merged 3/1/02. There are currently 180 participants in the merged plan. Is there any way that this plan would not be subject to the 5500 Audit?? Thanks.

Thanks for the response. So in a market like today's it might be a good idea. so if someone sets up a 412i plan currently and the market starts coming back (whenever that may be) is there any problem terminating the plan and setting up a traditional plan? Also, are the returns much greater than money market or fixed income returns?? Thanks again.

If the HCEs are receiving a 20% of comp PS allocation, can the NHCEs receive a 5% allocation that includes the 3% Safe Harbor allocation or does the 5% allocation need to be given in addition to the 3% Safe Harbor allocation?? It has been my understanding that the 5% allocation can include the Safe Harbor allocation, now i'm being told (without reference) that it can't. Thanks.

What are the advantages (if any) of a 412(i) plan over a traditional DB plan??

Do the new ERISA Bond rules for plans with more than 5% of assets invested in non-qualifying assets apply to owner only plans??

We have used names as classes before although we do try to avoid it if possible. As mentioned above, we have set classes based on ownership percentage, job class, officer titles. For the most part we can come up with something.

If all three dentists are key employees I don't think you have a problem. If they're not all key employees, you may want to think about assigning each of them a position and set your classes accordingly. Hope that helps.

I am talking about ADP refunds

How is the return of excess deferrals for a plan year ending 6/30/2002 reported on the participant's Form 1040?? According to the 401k answer book they should be reported on the 2001 1040. does that mean that if the form has been filed the participant needs to amend the form or can the return be reported on the 2002 Form 1040??

A client works for Company A. The client also is 100% owner of Company B, which owns 2.5% of Company A. The client receives W2 comp from both companies. The W2 comp from Company B originally comes from Company A. Neither of the two companies are service organizations. Is this a Controlled Group or ASG??? If so, why and what would need to be done to make it not a CG or ASG?? Thanks.

I don't think so.

A client who is an LLC has several adopting employers. There is K-1 income from one of the employers of over $200,000. The K-1s from the other employers all show losses. Do the losses net out of the $200,000 or can i use $0 if there is a negative earned income on the K-1?? Thanks.

I'm using individual aggregate and yes, since it's a husband and wife I'm not overly concerned. Thanks.

I'm trying to reduce the contribution. Neither particpant is at NRA, they are both a few years away. I've changed my assumptions, but still need to go lower.

if the particpants are already at their 415 limits and i change NRA from 60 to 62, how do i adjust the benefits without exceeding 415??

I am considering amending a plan's NRA from 60 to 62. There are two participants in the plan. Both are at the Hi3 comp 415 limit for both Accrued and Projected benefits. Is it possible to actuarially increase above the Hi3 comp limit as long as I don't exceed the 415 dollar limit?? Thanks.

A terminated, partially vested particpant who received a full distribuition in 2001 (calendar year ps plan) was then rehired later in 2001 and entitled to a contribution. Would they also be entitled to share in forfeiture allocation??

Does anyone know how to find out the life expectancy of a quadraplegic (sp) who is currently 60?

I'll contact Relius to inquire about starting one.

Do you know how I'd contact some of these groups??

An employer has changed vesting schedule from 5 year cliff to 3 year cliff effective 1/1/02. A participant terminated in July, 2002 with 4 years of vesting service. I just want to be sure that there is no way to keep this or any other participant on the original 5 year cliff sked or if there is way to keep old and new money on separate vesting skeds. Thanks.

I am just curious. Does anyone know if there is a Relius Defined Benefit User's Group??

I assume the rate group test you're talking about is the not the midpoint test, but the basic 70% test on each rate group??