ratherbereading

The doc doesn't specifically say no w/d until 65,

I have a plan that is on a McKay Hochman document. The plan does not allow in-service withdrawals. There is a participant who is 69 and wants to withdraw his money and is still working. The base document looks like it allows for that. I can't see anything referenced in the adoption agreement, but the SPD seems to agree with the base document. My co-workers say no, because there is no in-service provision, he cannot take his money. Thoughts? Thank you in advance!

A participant terminated on 2/20/2015. His money is still in the plan. His loan balance as of 2/20/2015 is $1283.33. That was the day the last payment was made on the loan. I am now sending him distribution paperwork. Do I need to accrue the loan interest until his money leaves the plan, or do I use the loan balance of $1283.33 as his outstanding loan balance? Thank you in advance.

I have a balance forward plan with pooled accounts at LPL Financial. Each participant receives their own statement. When forfeitures occur, instead of having a separate forfeiture account, they put the money into the owner's account. I have tried convincing them they need a separate forfeiture account to no avail. They don't want to pay for an account that isn't active. Isn't this a problem for the plan? Forfeitures are supposed to be allocated yearly. Is there regulation I can quote to convince them to have a separate forfeiture account? Thanks in advance.

No mention of true ups and I am referring to the adoption agreement. Do not have the basic plan doc. The exact language is, "The computation period for determining the Employer matching contributions shall be determined by the Employer at the time that the amount of such contributions are determined."

I'm not sure. We just took over the plan from another TPA. The previous 2 years there was no match. Not sure before that.

The document does not specify!

Thank you in advance for all responses -- Client began matching in July 2014 (plan was not amended - that's just when they began matching again). One HCE had maxed out at $17500 in June, therefore the client did not give him a match contribution for 2014. Is this allowable? Match is discretionary and there is a discretionary cap on the match. No conditions to share.

A final question. In a DB/CD cross tested plan - what if they did prepay the Gateway to terminated participants, and then the PS plan decided not to make a contribution? Wouldn't that be an issue? I am assuming just because the Cash Balance plan has to make a contribution, the PS plan does not. However, in giving the terminated participants the Gateway early, now they are obligated to give other eligible a contribution, correct?

Thanks rcline - good point about the W2s!

Thanks ESOP Guy. Yes, the client does want everyone paid out immediately because a lot of their employees leave the country as soon as they are terminated, not understanding they have money, then the client can't find them. The plan does state ....distributions as soon as administratively feasible. And they have to get a forfeiture allocation at the end of the year anyway, so there is no advantage that I can see in prepaying their Gateway.

HI Tom. This isn't a safe harbor plan. The client wants to avoid paying the terminated EEs out twice - once with their normal distribution then again when they get their gateway. However, they will also get a forfeiture allocation at the end of the year, so they are going to be paid out twice anyway. The client is making this way too complicated. I can't see using the forfeitures to make the gateway, because when they get paid out, part of that will be forfeited.

Follow up question. Suppose someone terminates, gets their gateway, then is rehired. Wouldn't they need an additional gateway contribution?

Thank you, John!

Hope Red Sox fans are enjoying their last place team! Yankees all the way!

I have a client who has a combined PS/DB plan. There are terminated participants who are getting a Gateway contribution. The client wants to pre-pay the Gateway contribution on the PS side using the forfeiture account every time someone terminates vs. waiting until the end of the plan year. Is this allowable? So for instance, someone terminates on 4/11/15. He wants to give them their 5% and then process their termination. Thank you-