BFree

How is top-heaviness corrected by a distribution? 20% is withholding. See the 1099-R instrutions. Don't know about the 10%.

hodag - look at the allowable investments for auto-rollovers. You can't lose money except perhaps on setup of the account.

DBTech - how do you square those instrutions with your first post? At January 1, the person in question is not an active participant. At January 1, this terminated person is not eligible to make salary deferrals.

Others have opinions on how to interpret 3405. http://benefitslink.com/boards/index.php?s...t=0entry71567

Do you believe your Profit Sharing plan is fully insured?

What documentation is need to terminate a nonqualified plan? Thanks-in-advance.

The VFCP guidelines on late deferrals and lost earnings may give you some guidelines. The PWBA published a FAQ with sample calculations.

To verify that receivables have been deposited and to see if there were benefits due but not paid at year-end, that were paid after the PYE.

Thanks. I am wrong to keep thinking of the gateway provisions of cross-testing when I mention average benefits testing on a benefits basis (for Match contributions)? I thought that if you were going to test using benefits/EBARs, you had to meet the gateway/broadly available/smoothly increasing. For instance, a Match in one plan is up to 1% and in the other is up to 5%.

Roughly: 90 HCEs in one location; 10 in another. 1000 NHCEs; 500 in the first location and 500 in the other. Location with large amount of HCEs has greater match formula. Okay - two plans will satisfy 410b ratio test combined - no problem. What if the desire, because of ADP/ACP testing, was to test separately? Can we move from ratio test to average benefits (tested separately), and can avg benefits be done on a benefits basis?

Okay, thanks. I appreciate the replies. I see that ACP test takes care of nondiscrimination in amount of contributions. When testing benefits, rights and features in -4, what does "satisfies 410(b) witout regard to 410(b)-5" mean? Does it mean that you need to satisfy the ratio test or the Average Benefits Test (sans the average benefits percentage test of 1.410(b)-5). Which leaves only the classification test and the ability to go substantially lower than 70%? Lastly, I am still unsure about whether an ABPT could be (or even needs to be)prepared on a benefits basis for the Matches of both plans. Assume 410b is not satisfied via ratio percentage and is not satisified via avg benefits test using contribution basis. Thanks again.

Plans cannot satisfy 410(b) separately via ratio test or ABT using contributions basis. Hence, the inquiry about ABT and cross-testing regulations. When you say that match components are tested for BRF, are you saying that 1.401(a)(4)-2 does not apply (or is deemed to be satisfied given what I have described) and that only -4 does?

Yes, that is correct. 2 members of controlled group, each with a separate plan and separate provisions.

This seems to be somewhat analgous to the above... - Separate Match formulas - Do not meet gateway 5%; are not gradual age or service Avg. benefits test can use cross-testing 401(a)(4) cannot unless allocation rates are broadly available Is the above correct? In determining "broadly available," is 70% or the safe harbor percent used?

2002 Instructions - When to Report: "Do not report a participant more than once unless you wish to revise or update a prior Schedule SSA..."