Jim Chad

Someone sent to me a scan of question 2:220 of the 401(k) answer book. It says that for match calculated on a annual basis, you have 12 months after the Plan Year End to contribute the match. I remember: Deductible under section 404 is the due date of the tax return counting extensions. Section 415 requires payment within 30 days after the due date of the tax return counting extensions to count in that year's annual additions. Where does the "12 months after Plan Year End" come from?

FWIW I am guessing "protected benefit" because it has to do with distributions. I am looking forward to seeing what others think.

I think that is OK for non-elective. But I think the longest you can keep someone out of 401(k) portion is 18 months. But then I have been wrong before.

I am curious about what others will say so I want to bring this to the top with this idea. If this extra comp is all being paid in December of 2009, than all of this comp is in what ever plan year includes December of 2009. And this is the plan year that any contributions would use this comp. This is my guess FWIW.

I am reading a different question. If your document says the safe harbor contribution is 4% the whole 4% would be used in the test. As Tom mentioned you cannot impute disparity on this, but otherwise testing is the same for all non-elective contributions. This is true whether the no-elective is safe harbor or discretionary. (This is for 401(a) testing: not ADP or ACP)

When I used the PC version of documents and printed the entire forms group, it was in there towards the back. Now I am on the ASP system and get a zip file. The doc ending in "gen.pdf" is the irrevocable election.

You might want to bring this one up again on Monday. But for now, I think if it payroll, he can use it for contributions. I fit can be payroll, then the old company must still exist. But watch out for top heavy rules.

Austin, The one I use now comes form Corbel so I can't post it. But the one I wrote and used to use went something like this: I irrevocably elect to not participate in this retirement plan of the employer. I understand that this decision can never be changed and I will never benefit from this plan. I am making this decision of my own free will and I will hold no one responsible for any harm that may com from it. It's not great. But it's a starting point for you. Merry Christmas!

I don't know what you are referring to. Can you clarify?

The custodian should release the assets as soon as he gets the paperwork form Participants or the trustee. I would tell the trustee to direct the custodian to pay out all assets after reasonable efforts have been made. You said that several letters have been sent. Were any of them certified? I don't think certified is required. On Plan termination, having more than $5,000 means nothing. The auto IRA is a viable option. IMNTBHO

Just want to clarify.....are you talking about coverage testing, ACP test or both?

I should clarify. We happily provide those things. And we are happy to do it because anything that takes more than 5 minutes, we charge for.

I should clarify. We happily provide those things. And we are happy to do it because anything that takes more than 5 minutes, we charge for.

I'm with Austin on this one. I will do quite a lot to make it easier on the new TPA. "What goes around comes around."

I will take a guess at how this might have been done. First, I want to change the terminology a little. It is the higher contribution that puts the NHCE's into the other rate group. The document or an amendment might give the flexibility to pick who to give a little more $ to. Does this help?

I am going to weigh in with my opinion, as a TPA, FWIW. I never look at them (for mercenary reasons). I will never be paid enough to deal with them. Very few are filled out perfectly and I could easily spend hours every day advising people on this..... and go broke in a month. In fact I tell clients to keep them in that person's personnel file forever. That way when someone dies, they have one file to go through carefully to find the latest form. I have no good way to know where the latest form is so please don't send a copy to me. Hope this helps

You are on the right track. They can have two separate plans. They each have to pass coverage testing counting all employees of both companies in the denominator. This process is very similar to BRF testing.

Thanks everyone. And good guesses, everyone. It was probably prompted by a call from a Participant. Maybe even from the ex - manager. He doesn't have the money and can't borrow any more. He is almost meeting payroll now. And he is suing trying to get the exmanager to pay the deferrals that were missed.

Thank you, J Simmons

Computer troubles have fried my brain. Please confirm that this is OK. The only Employer contribution will be $1.10 on each dollar deferred counting deferrals up to 6% of Comp. No body excluded and no hours or last day requirement.

In September of 08 a client stepped out of the management of his company because he had an "irrevocable letter to purchase the company" from his manager. The new guy took over but did not make the agreed payment's. April of 2009, the owner fired him and took over again. The manager had never deposited the 401(k) deferrals. Business has been so bad that the new owner has never deposited the $20,000. He just received a phone call from the DOL that he is being audited the last week of November. Does anyone have any suggestions for him?

In other words, doing it right means taking it out and putting it back.

Does anyone know if all ASPPA credit will qualify for ERPA CE?

Thanks Rcline46 and Sieve. I missed that.

I think you could permissively disaggregate. What I mean by this is you would test each plan for coverage counting all employees of both plans in the denominator. If they both pass coverage, then you could test for ADP separately. But, Kathy, I suggest you don't do this work until someone who knows more than me confirms or corrects this.