abanky

I guess my confusion lies with if the plan pays 2k in fees and then the sponsor pays the plan back 2k, that 2k is considered a contribution... but if the sponsor pays the fees directly its not... so everything must go into the plan first.

i guess we keep going in circles... so this is my problem 2006 Minimum Required Contribution = 30,000 Employer Contribution so far = 25,000 Plan administrative Fees paid by the ER = 3,000 PBGC Premium paid by ER = 2,000 How much would you say the employer has paid towards the 2006 MRC? 25k, 28k, 30k For the record, I believe that the PBGC Premium isn't deductible, but I have a client who refuses to contribute more because they believe it is.

Here is my thinking Can't the plan pay its administrative fees? Can't the plan pay the pbgc fees? Can't fees paid on behalf of the plan by the er be considered contributions? then can't the pbgc fees paid by the er be considered contribution?

Why? What is the reg?

I'm looking for the same thing... Anyone?

I don't think anyone has a manual for relius I'd stick to excel as well and not worry about the mail merge... take the time to develop a macro what will produce your statements to either printer or adobe (that's what i prefer).

i don't know why anyone would need anything other then excel for 401k PS plans...

I'm a learning now what is the difference between a Non Erisa Non qualified plan and a Non Erisa Qualified Plan?

if a plan isn't subject to ERISA, then it's "non-qualified" correct? also, if it is not subject to ERISA would its trust be protected?

Currently we have a non qualified church plan that only covers priest... NRA 75 and NRB 1000. 1) can a church plan be qualified but not covered by ERISA? (doesn't seem like it can) All my other questions stem from the answer of this question. Thank you, Andrew

Has anyone heard/witnessed/ or know the legality of the ability to have participate directed cb plans? would allowing a participant to individually invest their "hypothetical account" make the plan a cb, not a db? Also, if it is possible, what are the administration headaches involved?

Yes, I read that... and both sections indicate a val must be done once a year... i didn't know if there was something i was missing or the person who told me this info was an idiot... i'm thinking the latter

someone told me that for the schedule b, i only need update every 3 years... is this correct? how could it be? example... for 2006 Schedule B, valuation date 1/1/2004... for 2005 Schedule B, valuation date 1/1/2004 and 2004 schedule b 1/1/2004

I couldn't find the correct forum to ask this question, but i knew the people in here would have the answer. In layman's terms, could someone explain to me "Accumulated Other Comprehensive Income" as described by FASB 158? It might be thursday or just me, but i just can't grasp the concept... Thank you in advance.

I have a db plan where each participant (all plan participants are HCEs) has a separate rollover account in the plan. The plan sponsor wishes to continue the db plan but allow everyone to take their rollovers to IRAs or cash out... Does anyone see any problems with this? Is this allowable? Do they have to wait until NRA? Figured it out... but i can't figure out how to delete

Andy would you be so kind as to look at my document language i posted in 401(k) forum?

ok... I have this plan provision It sounds to me like it is split like you said. Am i correct? ARTICLE IV CONTRIBUTION AND ALLOCATION 4.1 FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION For each Plan Year, the Employer shall contribute to the Plan, except as otherwise provided: (a) The amount of the total salary reduction elections of all Participants made pursuant to Section 4.2(a), which amount shall be deemed an Employer Elective Contribution. (b) On behalf of each Participant who is eligible to share in the contribution below, such contribution, which amount shall be deemed an Employer Elective Contribution. For Plan Years beginning on and after January 1, 2002, a nonelective contribution equal to 3% of the Participant's Compensation for the Plan Year. If, pursuant to Section 410(b)(4)(B), the Employer applies Code Section 410(b) separately to the portion of the Plan (within the meaning of Code Section 414(l)) that benefits only Eligible Employees who satisfy the eligibility requirements of Section 3.1 that are lower than age twenty-one (21) and completion of a Year of Service, the Plan is treated as two separate plans for purposes of Code Section 401(k). Accordingly, if the Employer elects to make a Basic Matching Contribution, an Enhanced Matching Contribution or a Nonelective Contribution, then such contribution shall not be made on behalf of Eligible Employees who have not attained age twenty-one (21) and completed a Year of Service. However, in such a case, Deferred Compensation on behalf of those Eligible Employees must satisfy Sections 4.5 and 4.7. Contributions made to the Plan pursuant to this Section 4.1(b) are intended to comply with Sections 4.5(a) and 4.7(a) pursuant to the safe harbor methods permitted by Code Sections 401(k)(12) and 401(m)(11). However, if matching contributions are made to this Plan or any other plan maintained by the Employer, and (i) such matching contributions are made with respect to Deferred Compensation or after-tax voluntary Employee contributions that in the aggregate exceed 6% of the Employee's Compensation, (ii) the rate of matching contributions increases as the rate of Deferred Compensation or after-tax voluntary Employee contributions increases, (iii) at any rate of Deferred Compensation or after-tax voluntary Employee contributions, the rate of matching contributions that would apply with respect to any Highly Compensated Employee is greater than the rate of matching contributions that would apply with respect to a Non-Highly Compensated Participant and who has the same rate of Deferred Compensation or after-tax voluntary Employee contributions, (iv) any discretionary matching contribution made to this Plan and any other plan maintained by the Employer, in the aggregate, exceed 4% of the Participant's Compensation, then such matching contributions in the aggregate must satisfy the "Actual Contribution Percentage" tests of Section 4.7. In this regard, the Employer may elect to disregard, with respect to all Eligible Employees, all matching contributions with respect to a Participant's Deferred Compensation up to 6% of each Participant's Compensation, or matching contributions up to 4% of each Participant's Compensation. In applying the "Actual Contribution Percentage" tests, match contributions or nonelective contributions made pursuant to this Section 4.1(b) that satisfy the safe harbor methods permitted by Code Section 401(k)(12) may not be treated as matching contributions under Code Section 401(m)(3). The rules that apply for purposes of aggregating and disaggregating cash or deferred arrangements and plans under Code Sections 401(k) and 401(m) also apply for purposes of Code Sections 401(k)(12) and 401(m)(11). © On behalf of each Non-Highly Compensated Participant and Non- Key Employee who is eligible to share in the Qualified Non-Elective Contribution for the Plan Year, a discretionary Qualified Non-Elective Contribution equal to a uniform percentage of each eligible individual's Compensation, the exact percentage, if any, to be determined each year by the Employer. Any Employer Qualified Non-Elective Contribution shall be deemed an Employer Elective Contribution. (d) A discretionary amount on behalf of each of the following groups of Participants, which amount, if any, shall be deemed an Employer Non-Elective Contribution. The Employer shall provide the Administrator with written notification of the amount of the contribution to be allocated to each group. (1) Group A shall consist of: Owners. (2) Group B shall consist of: Non-owners. For each Plan Year the Employer may make an additional Employer Non-Elective Contribution ("Gateway Contribution") in an amount necessary to satisfy the minimum allocation gateway requirement described in Regulation 1.401(a)(4)-8(b)(1)(vi). (e) Additionally, to the extent necessary, the Employer shall contribute to the Plan the amount necessary to provide the top heavy minimum contribution. All contributions by the Employer shall be made in cash or in such property as is acceptable to the Trustee.

ok... let me know if any of what i believe is correct I've got a 401(k) safe harbor plan with a new comp that is top heavy... a) Since the plan is TH, i must give a top heavy minimum to plan participants who did not work 1000 hours, but are there on the last day of the plan year... (the contribution allocations provision says 1000 hours and last day of plan year) b) since the plan is safe harbor, i must give either a match or a nonelective contribution to all participants whether they are active at the end of the plan year. c) in order to pass the gateway for the NC, i must give the minimum of 1/3 of highest HCE rate or 5% to all active NHCE participants and all NHCE participants in category a or b am I close at all? Also, a plan document can't classify the safe harbor match or nonelective contribution as an elective contribution can it? Do i have to use either a or b in the nondiscr testing?

ok... let me know if any of what i believe is correct I've got a 401(k) safe harbor plan with a new comp that is top heavy... a) Since the plan is TH, i must give a top heavy minimum to plan participants who did not work 1000 hours, but are there on the last day of the plan year... (the contribution allocations provision says 1000 hours and last day of plan year) b) since the plan is safe harbor, i must give either a match or a nonelective contribution to all participants whether they are active at the end of the plan year. c) in order to pass the gateway for the NC, i must give the minimum of 1/3 of highest HCE rate or 5% to all active NHCE participants and all NHCE participants in category a or b am I close at all? Also, a plan document can't classify the safe harbor match or nonelective contribution as an elective contribution can it?

is this for lump sums too... I thought it was strictly current liability? I've still been using 94 GAR for lump sums, have i been doing it wrong?

I'd love to have an actuary to ask. Just trying to learn this stuff on my own. hmmmm.... Trying to figure this out.... ok, for a normal db plans, an individual nrb can not be greater then the 415 limit right? and say for simplicity, the participant has a Nrb at 415 limit of say 1000. and the participant has ten years left... the accrual method is fractional... therefore each year the participant accrues $100... that $100 also has a pvab right? what is the requirements to calculate that? is it 100*(Gatt Apr @ 30 year (or 5%) age 62)*(1.05)^65-55 or 62-55.... See how confused I am...

I understand that the Top-paid group election can lower the # of HCE's for testing. Is this true? Can I elect year to year? does it need to be in the document? what are the restrictions?

How do you determine the maximum amount you can contribute for an individual in a Cash Balance Plan?

nm

I know for a NC Rate group you don't include match or nonelective 401(k) contributions... but do you include them in the rate group for the dc part of a dc/db rate group?