JanetM

I don't think so. Corrective distributions are not eligible for rollover. Would guess the HCE did rollover not cash out.

You have to provide the unmarried participant a life annuity - but you don't have to offer QPSA.

I type fast since the meter is running for the client. I was told order is 402(g), plan limits (if any) 415© then ADP/ACP. Of course don't forget to reclass deferrals as catch up before you do anything. Extra credit question is confusing. How would decrease in profit sharing change 402(g) or ADP/ACP failure? I can only see that it would eliminate 415© failure. I think your client need remedial class in plan sponser 101 and basic record keeping needs for TPA. For summer school they could attend class on how the calendar deadlines work.

There goes the prudent expert standard. Hope their bond is up to date if any one sues.

Maybe I am missing the point. Why 3% SH NEC for the QACA. QACA already passes ADP/ACP because you provide the required match (100% on 1% and 50% on next 5%). Why not just add discretionary profit sharing? You could require 6 years vesting for profit sharing contributions. Make the profit sharing formula integrated to SSWB and the employer gets the most.

We sponsor 5 401K plans. Each year, starting in mid November, we mail safe harbor notices. We mail almost 16,000 letters and the average undeliverable rate is close to 10%. We spend December getting updated addresses and remailing the letters. Have been doing this since safe harbor was available and we have never been called on it. You do the best you can. Quick, contact the folks who weren't notified and make sure they understand the benefit for 2008. Seems to me there is still time for them to make a decision. Fail safe is to add true up so that even if they missed the first deferral in 2008 they will be made whole by year end.

I think the employee wages, late contributions and excise tax would be primary in bankruptcy filing. Not sure about earnings.

LOL Andy - of course it would be me having bad hair day.

OMG that was too funny. Thanks to both of you for making me giggle. Just the litte break I needed today.

PPA of 2006 changed the combined limit. For 2006 and 2007 you can fully fund DB and still do 6% to DC. In 2008 the limit goes away completely. DC will be limited to the 25% of payroll and DB doesn't enter the equation any more.

Thanks Tom, I knew we could count on you to make the Christmas Season special. Bless you and yours!

Wouldn't that be BRF failure? You have option that can't be used by NHCEs.

I agree with stellerfan- not covered by ERISA. You just have long term contract to continue paying this fella. Call it a retainer if you wish.

YIKES. Why would you want to do this? IMHO all the NQDC plans I have worked with the participant gets the funds he deffered and rarely is there any imputed earnings. Most see the lost earnings as equivenlent of tax deferral so no problem. Cynical me see the following senario: HCE defers comp and pick high risk/high return asset. The NQDC comp plan promises him 100% of his deferral. Asset goes to $0 and you are left figuring out how to pay him.

LOL it is. We sponsor 6 DC and 14 DB. Significantly lower count since we spent years merging plans.

We have received a few letters for plans that we terminated years ago. Most recent one was for plan termed and filed final 1998. IRS says they are confused because - they say- we filed the plan 5500 in 1998, 1999, 2000 and 2001 and all were marked final. Have spent quite a few hours trying to get this one sorted out.

We do. Ours is with Chubb and lists all plans in the US that require a bond.

What does the plan say?

Unless the original plan was multiple employer plan, when the company was sold the employees no longer are eligible to defer. They don't meed the definition of eligible employee. You will have to refund the deferrals made and the sold company will have to set up new plan.

TPA should be able to do simple query to the data base and create a list of defaulted folks in pretty short and inexpensive order. If they can't I would find another TPA. As to sending blanket notice to all I don't have an opinion, just an observation. Those who elect investments will look at it and say so what, I picked my investments. Those who were/will be defaulted will say oh yeah, I should make a decision.

First you have to roll to traditional IRA then convert to Roth IRA.

Off the cuff, it someone has made a affirmative election to contribute 0%, 1% or 2% I don't think you can put them in for 3%. It would only be for current participant who has made no election at all.

Hmmm, paid by you the participant or trust or investment funds? What's the difference. The only difference is that now you have a line item on your statement. Fees paid by trust or funds usually mean the amount is scraped off the daily NAV and the bigger you balance the more of the fee you pay. Example, Investment management fee charged to X fund. Your account is 10% of the total fund, you pay 10% of the fee. Now as far as AT&T goes, they should be providing you with this information. As to when it has to be available there is not law or reg that gives one. Contact them again, ask when when the fee schedule will be available.

Look on the death certificate. It shows single, married, divorced status at time of death.

Google "common law marriage" and you will find lots of sites. AZ and NM have do not recognize common law marriage.