Brian Gallagher

yvonne, no offense, but please take caps lock off next time...much easier to read. :-)

just make sure that the plan document allows for the two different entry dates.

Here is a document that we send out to our clients. It doesn't cite code, but it passed muster w/ our attorneys.

mgb-- thanks for correcting my oversight before. fidu-- the 20% withholding does not apply to EVERY distribution, only distributions that would otherwise be eligible for qualified rollover status. for example, returns of excess, QDRO payments to a non-spouse, after-tax money (gross), and annuity payments are not eligible for rollover, thus there is no mandatory w/h

it applies to ALL money distributed under 59 1/2. don't forget, defaulted loans are included, too.

i was under the assumption that the participants would have to get the notice in a timely manner BEFORE the plan year for which the SH was in effect. Sounds like this plan couldn't be SH until Jan, 2003. Also, if the participants got the notices in August, it would be too soon. Generally we tell people to do the notices between 30 and 90 before the new plan year. (And what did you mean that the employer was provided with the notice? Didn't the employer draft the notice?)

...and don't forget coverage testing. did this plan get a determination letter with that match? wacky, wacky wacky!

what does the plan have to say about "lost participants"? you may have some recourse there.

Per Pension Answer Book (2001): Q20:3 "TRA '97 eliminated the requirement that the SPD be filed with DOL. Howver, the SPD must be provided to DOLupon request..."

does the document or loan policy address the issue of the maximum # of loans outstanding? what happened to the first two loans? paid off? defaulted? still in effect?

i don't think the intention is to make a new plan, just add 401k to an existing plan

this isn't a specific case. i just wanted to know for my general knowledge. thanks for the help!

if a dc plan is dissolving, is there any notification that must be given the participants beforehand?

plus, the comapny can amend the plan anytime, too.

in our plan document, it allows qnec, refunds and recharacterization as corrections for the adp. however, the adoption agreement allows the plan to pick and chose which method(s) it wants. i wouldn't see a problem here if the doc allows for both refunds and qnec's. i doubt there's anything that says one method has to be used instead of the other unless, like above, someone just checked qnec on the a.a. and not refunds.

my bad. sorry about that. teaches me for just reading the last post, rather than re-reading the whole thing. don't mind me today. i was up late last nite.

10 k? isn't it 12 for 2003?

honestly, i'm not sure. i'll have to defer to the many people here who know more about this stuff than me. sorry.

is the plan a prototype or an idp? the dates of the remedial amendment period are different. i'm not sure exactly what they are (or were), another group at my firm is taking care of restating all the docs.

my firm always recommends that a plan get a determination letter with their non-standardized prototype a.a.

the catch ups are for the calendar year in which the person turns (or is) 50. the 402g limit is not-withstanding plan year.

i'm not sure why someone would want to use the joint life model. the UT is always a lesser amount if the spouse is less than 10 yrs diff.

i'm not sure how flexible your prototype is. our new non-standard from Corbel has provisions to exclude classes of people by money type: 401k, match, employer non-elective. if your document is not that flexible (as our pre-GUST one was) you'll either need to get another prototype or consider an idp. remember, whatever you do, you should apply for an determination letter from the irs.

I think you would have to move to a non-standardized prototype to exclude anyone from a particular form of benefit. you probably wouldn't have any coverage issues if all the owners were condidered HCE's.

If someone was out, say, for 1 year on Military leave--1/1/2001 thru 12/31/2001. What compensation should be used when determining a Profit Sharing contribution? Does she even get one? The plan uses w-2 wages for comp.