JanetM

With the proper notice I don't see why not. Are they looking to be EACA or QACA? If they are, IMHO, they should wait till 1/01/09.

How about a gold star? How many participants in this plan. Is plan small enough that one term triggers 100% vesting?

I would go back and amend the forms. You will most likely get a letter based on wrong EIN when you don't file in 2007. But that can be explained and the matter resolved.

You need to fix the withholding. I am not sure of the steps do that. Iam not sure if you can simply fix in 2008. May someone else on the boards has an idea.

You would have to sell the shares and contribute cash. You could then contribute additional cash up to the $6,000 limit.

If the participants elected Roth you must fix the w-2 and make up for the tax withholding. Not following participant direction is operational failure. If this is 2008 you have the time to fix. If it was 2007 error you have bigger problems.

for 002 - I would just fix prospectively. This is small plan and won't draw attention by the change. I you feel nervous - sure you can go back and amend. The Plan EIN should be the same as the employer. If the EIN should have changed in 1998 you can't amend that back to original change date. I think what is more important is that the sponsor of the plan was named correctly in the documents. Does the LLC sponsor the plan?

my view 1) Payroll company opened plan for NHCE with out the employers input? YIKES! This really isn't good thing, who has been signing the 5500?. If the ER continues the 401k plan it should be plan 003. You need legal counsel to fix this IMHO. You could amend PS plan to allow deferrals and them transfer the funds from bad plan 001 to plan 002. As an aside, were the accountant doing tax reconcilations with payroll? How could the company have 401K and the accounting folks not notice? 2)No flags that I know of. Happens alot around our company, be buy and sell companies all the time. We assume and pass off sponsor ship quite often.

On page two of 5500 - line 4 is space for listing Name and EIN changes. For 2008 the corp name will show on line 2a - then you will put prior sponsor and EIN on line 4.

I don't know of mandated minimum. I think that your circumstances would be the deciding factor. Will you have problem with top heavy? BRF? ADP? Small plan with only a few NHCEs could end up with the HCE deferral at very low level.

Below ground you speak for us all. We can talk until we are blue in the face - but they don't listen.

DOL calculator is best place to do it. The rates http://www.dol.gov/ebsa/calculator/a2underpaymentrates.html The calculator http://www.dol.gov/ebsa/calculator/main.html

Sheila, Not to an IRA. The current list on Inland Revenues site list the plan approved by UK pension regulator for transfer. But I told you have to be participant in the plan to do rollover. click on link to see list http://www.hmrc.gov.uk/PENSIONSCHEMES/qrops-list.htm

Here is website for CA. Call the dept of Inurance with your questions. Google is most likely self insured ERISA plan and not an insurance product. http://www.hmohelp.ca.gov/dmhc_consumer/hp/hp_cobra.asp

Here's the fed register. fed_reg_15apr08.pdf

I would add WSJ Guide to Understanding Money & Investing. If you are starting out, stick with Mutual Funds. Seek tax advice if you are investing mutual funds in taxable account.

Assets are not the deciding factor. If the plan was adopted and folks were earning vesting credit, I would file.

Participating employers don't have options. If you adopted the defaut (as apposed to alternative) schedule you froze benefits. You can't bargain to increase those benefits while in rehab. You can bargain to keep benefits at level offered under default schedule (basically this is reduced future accural) You also can't bargain for tiered benefits in the future while the plan remains underfunded. You must put all new hires into MEP. You could bargain to withdraw - but as you pointed out that will mean (normally) complete withdrawal. We are participating ER in SMWNPF. The biggest lipstick wearing pig I have ever seen. We are a CG with multiple ER's and locations in the plan. We started doing w/d estimates about 6 years ago, and the numbers have gone from very large to OMG. We are just going to ride along with default schedule for a while and see what happens.

Does the participant have an account balance after two weeks? Our DC plans charge participants monthly fee, so if your first contribution to the plan is made on last day business day of the month you will incur the fee. This is allowable. I don't know if there is difference between monthly vs quarterly in being allowed. But is does make the case for charging fees monthly.

Other places to check are the W-2 and quarterly stmt. Look to see if the unmatched it reducing loan balance. Check the W-2 to see what the contributions were last year.

Kim the ex probably gets is since that is where the payment is sent.

Does the plan sponsor (read fiduciary) truly believe that a non interest bearing account is a prudent investment for the plan?

Just pointing out - participants are always 100% vested in employee deferrals.

If it is not safe harbor you can change anytime you like by amending the plan. DC plans don't need to provide 204h notice of benefit reductions. You can't reduce benefits already accrued so you have to freeze at future date, before deferral election is made. If employees can change deferrals each pay period then 30 days is plenty of notice. If changes are only allowed at certian intervals, you have to give everyone a change to change deferral and future freeze date will depend on that. Regarding union, if they just bargained to be in the plan - without stating the actual benefit levels then they are receiving you are fine to set date and freeze. If the bargained the mgt rate of 50% on 3% and 25% on next 3% you will have to wait until the contract comes up for negotiation unless you call them back to the table now. To recap - notice will depend on plan design. You have to give everyone chance to make change. Examples: If you can only make change monthly you must wait until 5/30 for effective date.

Is there contract or trust language that deals withht this? Get some legal advice if there isn't. You can't distribute the funds to participants, so unless you can transfer to another custodian then you are stuck. Get the DOL involved if this is 401K plan, what happened to contributions?