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It is discretionary, but the formula is a pro rata formula. Thanks for your input.

I have a plan that has a SHMAC. It also has a pro rata profit sharing formula with 1000 hr/last day rule. Is there any problem with respect to the safe harbor rules for amending the profit sharing formula before the end of the year? I can't find anything that says I can't do it but for some reason there is something in my head that tells me that this is not allowed due to the safe harbor rules.

I have heard others argue that you could do it as well. To me the DOL regs are very clear: ...an accountant will not be considered independent with respect to a plan if: 3) An accountant or a member of an accounting firm maintains financial records for the employee benefit plan. It seems crystal clear to me.

Austin, I agree with the practice of defining a mutual fund as a security. I have also found TAG not to always be right.

Your document needs to exclude the groups(companies). You can't just arbitrarily decide to exclude groups.

You will do a 5500 but you won't file any schedules.

Yes, you can do it without STP. Just a little more intervention on your part.

I don't think so. My guess is that the participant's cure period was stated in the promissory note which is what they signed and agreed to and that can't be changed.

I have a question for you, Tom, since you are on the Q&A committee. Why on the Q&A handout were most of the questions not answered?

Prepare to waste your time... http://us.mms.com/us/dark/index.jsp

Your plan document may require it to be deposited by the due date of the tax return but the safe harbor contributions have to be deposited no more than 12 months following the end of the plan year.

You are correct. It should be listed in the final 401(k) regs but I can't give you the cite offhand.

No, you can't do that. Make sure you are reading it correctly. Sometimes documents will say something like six months of service or 1000 hours in the next 12 month period. (or something like that).

If it is deferrals, I would recommend using the prescribed method from the IRS in the EPCRS. Make a 50% QNEC for the ADP for the time period in error. (See Rev. Proc. 2006-27

I do know you can do it but I have never actually done it.

Funny answer but it is the correct one.

They cannot adopt a document for the year you propose as it has already passed.

I would say you would be subject to top heavy. In order to be deemed not to be top heavy your plan must consists of 1) solely of a safe harbor 401(k) arrangement and 2) all matching contributions satisfy the ACP safe harbor. After-tax contributions would not meet the first part.

Shouldn't be a problem.

After-tax contributions would have to be tested under ACP. They do not qualify for the safe harbor treatment.

No, just fees paid directly from the plan.

Yes, that is fine.

You probably want to look into registering with NASBA -- National Association of State Boards of Accountancy.

Maybe this thread will help. http://benefitslink.com/boards/index.php?s...c=32975&hl=

401(k) deferrals and matching contributions are considered employer contributions.