FJR

Doesn't this come down to a few points? Like: Who has the language to add to the plan document? Can the Payroll providers accomodate this? How do you daily recordkeep if the monies have to be seperated? Two omnibus accounts? Administrativly can the major providers of pension software handle this? Again, the theory is great, but it seems like this is far from being ready as of 1/1/06

Is anyone out there ready to start administrating the Roth (401(k)? You can't help but pick up any news article and read about the pro's and cons of the Roth, but the articles never mention the fact that Vendors or administrators or even payroll providers are ready. Curious as to what people are doing right now in this area. Thanks

I think the answer to your question would depend on if the plan is top heavy or not. That is refering to the part about the min. gateway and the extra 2%.

A lot of BIG payroll providers who are in the 401(k) business as a bundled provider will use the float on the payroll deductions. It is part of their business model and is one of the reasons why they can come off as a low cost provider. There is a lot of money they make by not transmitting on the same day.

Thanks. I am assuming then they have not come out with any final regs?

Is the Roth 401(k) that goes into effect 1/1/06, available as a Roth 403(b)? Sorry if this is a stupid question.

Am I missing something? Why wouldn't you utilize the automatic rollover IRA option if they have under 5K balances?

How are people administering loans with the following: Max. loan amount = 1/2 the vested interest up to 50K. Participant has the following sources. 401(k) = 40K Match = 10K Profit Sharing = 20k Can all 35K come out of the 401(k) source or do you have to administer it accross all sources? Thanks.

I have a situation where a new plan would like to seperate certain HCE's and allocate a different %. Is it acceptable to define the following: Non-partner Physicians (they happen to be HCE's) Other Highly Compensated Participants Thanks.

I would mention that if the plan is Top Heavy, everything mentioned is not applicable.

Forfeitures are added to the contribution in this case.

If they also allocated Forfietures, what would you do with that?

Of course. Just wanted to make sure under the fact that a PS allocation was never utilized that they still qualify for the 3 year.

Company currently sponsors a SH K Plan. From the beginning they have used the 3% QNEC SH election. They would like to amend their plan to include X-testing language. Upon review of the document, they have a 3 yr. vesting schl. for the non elective PS allocation. They have never allocated PS contributions. If they amend the plan to now have a 6 yr. graded vesting schedule, do the current EE's remain under the old schedule or can they apply the new 6 yr. schedule? Thanks.

Plan sponsor allocates a MP contribution to a participant who was not employed on the last day of Plan Year. 3 months later they find that the participant was actually termed and should not have recvd. the contribution. How to correct?