Harwood

You can exclude the newly employed from the employer contribution and be a safe harbor plan. But if you do include them for deferrals but exclude them from employer contributions, you don't get the "free pass" on the Top Heavy issue.

This was on the back on my recent plan loan check: "By endorsing or cashing this check, I agree to repay the amount of this loan, plus interest, according to the terms and conditions of the Promissory Note and Security Agreement contained on both sides of the document attached to this check and according to the Participant Loan Authorization Agreement. I agree that my employer will deduct the amount of my loan repayments from my compensation."

Two IRS FAQs regarding Plan Terminations: http://www.irs.gov/retirement/article/0,,id=97163,00.html

Read the 1099-R instructions carefully. The amount of the distribution may come into play.

http://www.dol.gov/ebsa/publications/qdros.html http://www.pbgc.gov/publications/divorce2k.pdf

Kevin - would you give Participant balance information to any spouse, especially in a community property state? Can your spouse, if any, call up a plan and get your account balance? Re-reading the DOL suggestion, it does say to give information to "prospective alternate payees -- spouses, former spouses, children, and other dependents of a participant who are involved in a domestic relations proceedings." So, if you have proof that a close relative of the Participant was actually involved in a domestic relations court proceeding, I would guess it is OK to provide some account information. But it is always best to get written permission from the Participant before releasing data.

I think it depends upon the terms of the QDRO. Some split non-vested assets and allow an Alternate Payee to gain additional vesting as the Participant accrues additional vesting. Many QDROs, however, give the Alternate Payee a percentage of only vested assets at a certain date; additional vesting for the Participant has no effect on the Alternate Payee amounts.

QDROPHILE: can you direct us to a prior thread that discusses 401(a)(17) in the context of a plan that defines compensation on a per-payroll basis [and therefore introduces the factor of timing]?

http://benefitslink.com/modperl/qa.cgi?db=...liability&id=30 Also, from Form 5500: "Note. Plans are permitted under certain conditions to purchase fiduciary liability insurance. These policies do not protect the plan from dishonest acts and are not bonds that should be reported in line 4e."

The 401(k) Deemed hardship distribution standards say a physician is defined in section 1861® of the Social Security Act. Is the treatment being given by a "physician"? http://www.ssa.gov/OP_Home/ssact/title18/1861.htm

The initial question states that "compensation for this purpose is compensation for each payroll period." It seems to me that in this case compensation accumulates every payday. Therefore only the first 200/205 thousand can be matched. Perhaps someone can direct us to a prior thread where the issue of "the 401(a)(17) limit is a dollar limit and not a timing rule" is discussed in the context of a Plan that defines compensation on a payroll-by-payroll basis.

http://www.sbca.net/retirementoptions/ Also: the Hot Topics at http://www.mhco.com/ has an article and a chart: 11/07/2003

"Distribution processed December 2003" Report it on a 2003 945, even if the withholding deposit is made late.

JDuns - I've heard that too. Employer contributions - match and profit sharing - can only be based on the FIRST $200,00 in compensation; whereas employee deferrals can be on all compensation. So I've heard.

The American Benefits Council has some older material on Issues/Retirement/States. Among others: www.abcstaff.org/documents/state_update022703.pdf www.ncsl.org/statefed/TaxConformity_report.htm Includes IRAs; June 2002 www.abcstaff.org/issues/retirement/seyfarthchart.pdf December 2001

http://www.dfeh.ca.gov/Statutes/cfraNotification.asp "An employee must give advance notice if he/she wants to take a CFRA leave An employee shall provide at least verbal notice sufficient to make the employer aware the employee needs CFRA qualifying leave. The notice shall state the reason for the leave and its anticipated timing and duration. An employer may require 30 days advance notice before CFRA leave is to begin if the need for the leave is foreseeable. If 30 days is not feasible (e.g., not knowing when leave will be required to begin, a change in circumstances, or a medical emergency), notice must be give as soon as feasible."

WDIK - I don't see how to get "Total Return" over a period of time - including dividends - only changes in unit prices.

You wrote that "... a participant is laid off as of the last day of the plan year..." Does that not mean that they were actively employed on and during the last day of the plan year?

All time with all companies within the control group usually counts [check your plan's definition of Year of Service and Hour of Service] Control Groups include all companies on a world-wide basis.

They were actively employed on the last day of the Plan Year.

http://www.cigna.com/retire/general/compli...st/2002SWIS.pdf

Not sure if this is a payroll question or retirement plan question. For Payroll, check Publication 15B http://www.irs.ustreas.gov/pub/irs-pdf/p15b.pdf [among other things, it states that you don't use the spouse's age] If a Retirement Plan question, check the terms of the plan Document for compensation definitions. Of course, the Payroll rules lead to what is in Box 1 of the W-2, though GTL in excess of $50,000 is not subject to withholding under IRC 3401(a)

Also, if their only compensation is from Worker's Compensation, it is extremely unlikely that they have any plan compensation.

I agree. If Alternate Payee's account is less than $5,000 - and it is plan policy to force out such balances - then do it.

Deferrals must come out of a paycheck [except for the self-employed]. This method of correction is not acceptable at all. W-2's and paychecks are based upon constructive receipt. Taxable compensation cannot be changed after-the-fact like this.