LRC

Treasury Regulation § 1.401(a)(4)-11(d)(3)(iii) addresses the rules for granting such pre-participation service: (iii)Requirements for pre-participation and imputed service - (A)Provision applied to all similarly-situated employees - (1)General rule. A plan provision crediting pre-participation service or imputed service to any HCE must apply on the same terms to all similarly-situated NHCEs. Whether two employees are similarly situated for this purpose must be determined based on reasonable business criteria, generally taking into account only the circumstances resulting in the employees being covered under the plan or being granted imputed service and on the situation of the employees (e.g., the plan in which the employees benefit or the employer by which they are employed) during the period for which the pre-participation service or imputed service is credited. For example, employees who enter a plan as a result of a particular merger and who participated in the same plan of a prior employer are generally similarly situated. As another example, employees who are transferred to different joint ventures or different spun-off divisions are generally not similarly situated. (2)Examples. The following examples illustrate the rules in this paragraph (d)(3)(iii)(A) . . .

Not to revive the previous banter, but what ever happened with regard to terminating the 412(i) plan? I want to convert my client's to regular defined benefit plan, but that correction option window ended. I have reached out to the IRS (on a nondisclosure basis), but just curious how this one turned out. Thanks!

When changing recordkeepers, a blackout notice was timely provided to all actively-employed plan participants, but was inadvertently, not provided to terminated-vested participants. The error was not discovered until the blackout period had ended. Is there any correction method for the failure to provide the notice to all participants? Is anyone aware of the DOL taking enforcement action for such failure to provide notice? How should Line 4n of the Form 5500 be completed (i.e., check “yes” that the blackout notice was provided)?

When changing recordkeepers, a blackout notice was timely provided to all actively-employed plan participants, but was inadvertently not provided to terminated-vested participants. The error was not discovered until the blackout period had ended. Is there any correction method for the failure to provide the blackout notice to all participants? Is anyone aware of the DOL taking enforcement action for such failure to provide notice? How should Line 4n of the Form 5500 be completed (i.e., check “yes” that the blackout notice was provided)?