Tinman

When a profit sharing only plan amends mid-year to add a deferral provision (traditional and Roth), what compensation would be used for testing purposes - full year or only from the effective date of the amendment adding the deferral provision? Is there anything else to watch out for? Thanks!

Then my guess is that no 1099 is issued in this case? Not normally in the business of dealing with anything other than DC plans, so not over clear on all the ins and outs of the DB world.

When moving funds for a lost/missing participant from a terminating DB plan to the PBGC, what 1099-R code is used for the distribution from the plan? Even though it's not an actual "rollover", would Code G be appropriate? Thanks!

Excellent! Thanks for the help!

I know previously there was a waiting period between when the notice was given to participants about removing the J & S provision from the plan and when the removal of the J & S provision actually went into effect, but I thought that had changed. I can't seem to find documentation - can anybody help? Thanks a bunch!

On second look.... it's not totally what I needed.... I'm still looking for something - official example or cite - that indicates it is an acceptable practice for an ADP test using comp-less-deferrals to have the ADR(s) in excess of 100%. Using the cites above, I can verify that we can use this type of comp for testing, but it's the ADR of 100+% that's giving us the issue. Thanks!

Thank you! That's just what I needed.

When testing a 401(k) plan using compensation less deferrals as the testing comp, in some instances this causes the participant's deferral % to exceed 100%. Can anyone help with a cite so I can direct the employer's accountant to verify this is ok?

No, I never received any feedback - and no, we don't use their admin system. We were trying to find a proposal program that was less cumbersome than trying to run proposals in Relius and was simply easier to use than Flexsoft. We actually went with The Retirement Planning Center's online system. www.therpc.com

Sounds like the best resource to me! Thanks for the response.

Does anybody know - in California is the state disability calculated on total compenation or compensation less deferrals? In other words, when an employer has to calculate the payment to the state for disability for an employee, is that calculated after deferrals are withheld? Thanks!

Plan is an off-calendar year of 5/7 - 5/6. Entry dates are defined as "Semi-annual. The first day of the 1st month and the 7th month of the Plan Year" There is nothing specific to semi-annual entry dates in the BPD. My question - would you take this definition to mean that entry dates are actually 5/1 and 11/1? The 11/1 date I'm ok with - but the 5/1 date would be in the prior plan year so I don't get how that would work. Example: Plan year 5/7/2009 thru 5/6/2010 First Entry date: 5/1/2009??? Opinions, please!

Out of approx. 2600 plans, we have less than 200 left. We did make plan design suggestions on the majority of plans, so most of the ones that are left are ones that just haven't responded. All in all, I'm feeling pretty good about where we're at!

Does anyone out there use the Blaze Proposal System? If so, any feedback you have would be appreciated!

Does the owner of a business who is a sponsor of his own Solo K plan need to be bonded? At one point, his son was also employed and participated in the plan, but the son has now terminated and taken a distribution of his account balance.

I have 2 401(k) plans (A & B). Each plan is a plan of a controlled group. The both A & B have companies that are minimally related but not enough common ownership to be a part of an overall controlled group. One company within Plan A wants to separate from the group and start their own safe harbor 401(k) plan effective 1/1/2009. Any thoughts on this? Pitfalls? Potential problems?

I've asked the DOL/IRS for lenience in the past with this type of issue and have always been able to get them to waive/reduce any penalty. I'd try the letter route and if a penalty still exists, I'd hit up the overnight service.

I know I don't have all the info I need. The PLLC does have one NHCE and I'm waiting on more detail about the LLCs and any other related businesses.

I have 7 doctors, all LLCs in their own right, who now have formed a PLLC. Not sure how this may affect having a PLLC-sponsored 401(k) plan: 1) If any of the LLCs sponsor a plan currently, is this a problem? 2) One of the 7 docs has a physician-spouse, also an LLC, who has her own plan. Is this an issue? 3) Are we looking at a controlled group? A multiple employer plan? Help! My brain hurts.......

Speed is a big issue - sometimes takes 15-20 seconds to get to the next page in the interview. Redrafting sometimes a problem - have to go to Accudraft because our changes are being kept. Saving a plan and then not being able to find it unless we log out and then log back in. Producing documents/SPDs where variables are not filled in or are filled in with asterisks and "error" messages. It's been really frustrating!

Looking to talk to someone who also uses the Accudraft online system - we've had some issues with the system and are being told NO ONE ELSE IS HAVING THESE PROBLEMS which I find hard to believe. Don't want any specifics about your document, just want to see if you have any technical problems with the system. Thanks!!

Looking for someone who is an Accudraft document system user, preferably the online system - just looking for some feedback. We've been having some issues with the system ourselves and are hearing from the vendor that we are the ONLY ONES HAVING THESE PROBLEMS. Thanks!

We have a 3-tiered match formula. When testing each tier for BRF, the highest tier fails. How is this corrected? Via QNEC/QMAC?

We have a plan sponsored by a nursing home that excludes "on call" employees, classified as "PRN". The 410(b) testing passes, however there are concerns that we are not in compliance with 401(a)(4). Opinions, please!

Thank you! This should work (including the calendar).