Archimage

Employers can go with whatever they want. The key thing to remember is that they cannot reduce anyone's vesting percentage. They also need to decide if they want to treat new monies with the new vesting requirements or to make it retroactive.

It sounds like the client is acting a little funny. I would definitely not trustee the plan if you offer those services and would possibly not take the client at all if they cannot provide you with a plausible explanation as to why they wish to do this.

Yes, and what we did is put the participant in the position had the direction been followed. Of course if he turns out better without his direction being followed, I am sure he won't mind you not putting him back in the position he would have been.

It has been my personal experience that most employers I have been associated with start college graduates out at $24-$25K. Anything less than that and you not being competitive. You get what you pay for.

I believe the only thing required would be an SMM. You can change the match to whatever you want as long as no participants have not accrued the benefit yet. For example, if a participant has worked 1000 hours and the doc says you have to work 1000 hours to receive the match contribution, you cannot take that away from the participant. If you are doing the change for the beginning of the plan year, you should be fine.

I believe you would only deduct the half of the SE tax that would deal with the employer side. You would still have to include one half of the tax in gross income.

You are confusing the 404 deduction limit with the 415 individual limit. The 415 limit is updated for 2002 to the lesser of 100% of compensation or $40,000. The company itself can now contribute 25% of total company compensation to a plan without including EE deferrals.

I am starting a new plan on a standardized prototype document. I realize that I do not have to submit to the IRS for determination. Do I still have to post a Notice to Interested Parties?