JanetM

You could say that since no HCE's benefit during 2002 you pass ADP & ACP. No one was allowed to contribute - no HCE's benefit - you pass coverage.

Will cut and paste the reason - no distributable event. Under your policy - I borrow 50% of my balance and declare bankruptcy. As soon as bankruptcy is done - I borrow 50% of what my balance is because I don't have loan. IRC, PEN-CODE-VOL, SEC. 401. QUALIFIED PENSION, PROFIT-SHARING, AND STOCK BONUS PLANS. 401(k)(1) General rule.--A profit-sharing or stock bonus plan, a pre-ERISA money purchase plan, or a rural cooperative plan shall not be considered as not satisfying the requirements of subsection (a) merely because the plan includes a qualified cash or deferred arrangement. 401(k)(2) Qualified cash or deferred arrangement.--A qualified cash or deferred arrangement is any arrangement which is part of a profit-sharing or stock bonus plan, a pre-ERISA money purchase plan, or a rural cooperative plan which meets the requirements of subsection (a)-- 401(k)(2)(A) under which a covered employee may elect to have the employer make payments as contributions to a trust under the plan on behalf of the employee, or to the employee directly in cash; 401(k)(2)(B) under which amounts held by the trust which are attributable to employer contributions made pursuant to the employee’s election-- 401(k)(2)(B)(i)(IV) in the case of contributions to a profit-sharing or stock bonus plan to which section 402(e)(3) applies, upon hardship of the employee, and 401(k)(2)(B)(ii) will not be distributable merely by reason of the completion of a stated period of participation or the lapse of a fixed number of years; 401(k)(2)© which provides that an employee’s right to his accrued benefit derived from employer contributions made to the trust pursuant to his election is nonforfeitable, and 401(k)(2)(D) which does not require, as a condition of participation in the arrangement, that an employee complete a period of service with the employer (or employers) maintaining the plan extending beyond the period permitted under section 410(a)(1) (determined without regard to subparagraph (B)(i) thereof).

Whith no distributable event how can you offset the loan from the account balance? You can't have a deemed distribution offset the balance. Offset only occurs at distribution. The loan stays on the books for active employees - there are just no payments made on the loan. If the ee wants new loan - outstanding defaulted loan is used in determining the amount that can be barrowed. This is my understanding of the rules - you can't distribute until there is an event listed under IRC 401(k)2B

If the participant does not repay the loan - even after the default - it is still a loan on the PA books and counts in the calculation of available loan dollars in the future.

Pax, our payroll dept. says the rule of thumb is if there is more than 25% common ownership you should transfer the wage bases over.

Question for you - My company owns multiple companies. We are a control group. Some of the companies have sheet metal workers union employees and are contributing to the SMW national pension fund. None of the union locals are the same - they are all over the country. Question - If company A closes one facility, keeps two others. Do you look at just the one facility company A closes and see if there is cessation of operation - or - do you look at all facilities company A owns that participate in SMW Plan? Or to you look at company A, B and C locations and use the entire control group? One Atty is saying you look at partial withdrawal on control group basis - anther says it is by locaton. HELP!

Try PlanSponsor.com

What if I have been logged out since Friday - this is the problem. I will go to site in the morning - being out since prior afternoon and it will give me the message I have to wait.

Has anyone else been having trouble with freeERISA. Saying you can't log in because you were recently logged in?

Could you escheat to the state?

John G, I have to disagree - look at social security. Seniors and the AARP have not been sucessful at getting that tax repealed. The govt makes the rules, they (depending on who is incharge at the time) will make whatever changes they deem fairest to their constituency not the public. We can vote they out sure - after the fact.

Guess I am a cynic. I firmly believe the Roth will continue to exist but in the next 20 to 30 years you will see the same taxation as Social Security. Who would have thought, in 1950, that any portion of SS would be taxed. I see the IRS setting income limits - if you make over $ amount a portion is taxed.

Item on 7/26/02 benefitslink said governor signed bill conforming to EGTRRA. So I think we are down to Arkansas and NC.

Control F - will allow you to search a .pdf file. You may need to upgrade your reader if you use an old version.

Back when I was doing TPA work - we did see caps on the percent a person could contribute. Example - 8 funds and company stock. No more than 10% of your current contribution could be in company stock.

Have three DB plans merging effective 1/1/02. Question regarding the SSA for Plans A, B and C for 2001 - do I show term vested/paid out as code A/D for the final 5500 SSA ? Then for new plan, on 2002 filing show all the code A's from three plans previous years as code C's. Just confused on the timing - want to make sure I do this right.

You can do what we do. TPA runs the checks on wednesday for all the FSA reimbursements. They tell us the amount and we transfer the amount to the account. TPA mails the checks and everyone is happy.

Our plans use the 95th percentile of the Ingenix UCR tables.

Look in plan doc and see what the definition of comp is, our plan specifically excludes severance.

Katherine, the IRS link did not work.

Why don"t you just make the new company the sponsor of the old plans - and then freeze them. Start the new plan for the combined new company. You can always merge the existing plans into the new plan.

We have 4 different plans (due to acquisitions) - 3 of the plans allow after tax. All three limit AT to 6% of comp.

Sounds like typical balance forward accounting. Look in the document and see what the valuation cycle is. Annual valuation means they get the balance as of 11/30/01 - the most recent valuation date. Valuations could be quarterly, monthly or daily.

Plansponsor.com has a section for surveys. They did one recently on TPA's. You could start there.

If the plan says nothing about forfeitures at termination, does it say anything about the non-reversion of assets to the employer? I would amend the plan, allocate the forfeitures and payout the assets.