Brian Gallagher

So it's up to the plan administrator to interpollate hours worked for the portion of the year the person missed? Is that stated anywhere?

Are you sure of that heirarchy for the forfs? There is no reallocation in there? Our Heirarchy is: 1) reallocate as though it was a profit sharing 2) reduce match/profit sharing 3) pay expenses Once method is chosen and exhaused, you move up the list with the remaining forfeiture, the last resort being reallocating. You will never have any left over after that.

The absolute LATEST a plan has is the 15th business day of the month following the month in which the deduction was made. In this case, Jan 21. But the company has do do it as soon as administratively feasible so it should have been in there well before that. Did you try calling the record-keeper? Maybe your on-line account wasn't updated yet, but your account with them is. Maybe for some reason your true account isn't filtering over to the on-line system (just a thought).

How does vesting work for USERRA for hours counting plans for vesting? For example, say: 2001 works full year 1000+ hrs 2002 works 1000+ hrs, gets called up in Oct 2003 comes back in May and works 900 hrs thru Dec 1 yr vesting = 1000 hrs Does this person get credit for 2003?

How much is to be reported on Form 5330 if the plan is late in removing ADP excesses? I know it's 10%, but 10% of what? For example, if the total doallrs to make a test pass is $1000 but when the money is actually distributed after losses it's $950,are the taxes $100 or $95. Specific example: a TPA sent a letter to a client saying the ADP test failed by $6,717.38 and told the client to send a check to the IRS for $633.00 (which is less than 10%) (I'm not particulary friendly with this TPA, so I'm asking you guys and gals)

Those nine people do not have to defer, they just have to be eligible to defer and receive match. Right?

I would think that it's okay. I thought that no other EMPLOYER money could be contributed, such as profit sharing or reallocated forfeitures. I could be wrong.

We will not honor Fidelity's mandate--we have no way to record keep it. We are not accepting any new contributions after 3/31. We are making all the plans either close or replace the funds. Naturally, we are pushing to have them replaced to ensure that the asset class is represented.

In my post above, I was responding to MWaddell's post right be fore that--about not requiring permission to change. I fogot to add this section of 98-1. Still Sec VII, but in the initial paragraph. Section 401(k)(3)(A) provides that if an employer elects to use the current year testing method for purposes of the ADP test, that method may not be changed except as provided by the Secretary

Can a terninated person take a hardship? I say no, since it's considered an "in service withdrawal". Someone in my office insists he took one from his prior 401(k) after he left the company. In this specific case, this person (no the guy in my office) needs only $2500 and the plan does not allow for partial withdrawals.

Where does it say that match is on the FIRST $200k? What if somene makes $400K in a year. If that person choses not to defer until July (assuming her income is even over the year), the she would get absolutely no match??!!??

What about Notice 98-1, sextion VII? Accordingly, a plan is permitted to change from the current year testing method to the prior year testing method in any of the following situations: 1. The plan is not the result of the aggregation of two or more plans, and the current year testing method was used under the plan for each of the 5 plan years preceding the plan year of the change (or if lesser, the number of plan years the plan has been in existence, including years in which the plan was a portion of another plan).

From the IRS website: The limitation for defined contribution plans under section 415©(1)(A) is increased from $40,000 to $41,000. the page is http://www.irs.gov/newsroom/article/0,,id=114714,00.html ...bg

For starters, we use accurint.com. They charge, I think a quarter per search. But I'm not sure if you need a membership or not. They are at www.accurint.com ...bg

The way I have seen fees taken, is that they are taken before any distributions or loans. That also determines how much someone has to take a loan also. For example, if the fee is $100 and the participant has an account balance of $5000, the available loan would be $2450, not $2500. In the example above, the withholding should have been $280, not 300. ...bg

I thought that if the plan loan isteslf would increase the amount of the need, that a hardship could be taken without it.

Can you really go by date signed? What if I signed my form on Dec 15, but didn't get it to human resources 'til the 28th?

maybe it was in the proposed regs? it's nothing i've read either; i've just "heard" it.

plus, after 5 years, you have to apply to the IRS to make the change to prior and stae your reasons for the switch. they don't necessarily have to grant it.

i thought the t-h minimum would be the highest rate contributed to a key employee. so if you had 1 key at 2.0%and 1 at 1.6%, the t-h would be 2% and remember, it is the rate to a KEY ee, not hce.

you could always use the case that you need the SSN's for proper tax reporting if and when there is a distribution. don't you already have most, if not all, the SSN's already? If so, why would the sponsor be so adverse to provide them?

pjb, if someone is rolling $200,000 into a plan, the timing could be of paramount importance.

tom, is the p/s contrib affecting a year to year thing? for example, assuming every year deferrals and s/h match and top heavy: 2003 no p/s, no t/h contrib, 2004 will do p/s, therefore t/h needed, 2005 no p/s, no t/h, etc...

ooops. "experience"

in my vast (lol) experince with retirement plans, 5% owner is the IRS definition of 5% owner which counterintuitively is MORE than 5% ownership. so in confidence, i would say under EGTRRA it is the same definition.