Tagpay

Yes, employer stopped withholding deferrals without the proper legal action. They want to terminate the plan.

Client stopped the deferrals and safe harbor match because they don't have any money. No amendment was done to freeze and terminate. They can't afford EPCRS.

Calendar year 401k plan with basic safe harbor match - 4 participants - 2 out of the 4 are owners Client was using a payroll provider but due to financial issues took the payroll in house in September 2014. The client stopped making the 401k contributions and safe harbor match in September. I prepared the ADP/ACP test for 2014 and both tests fail. Refunds are needed to for both owners. Also prepared the top heavy test with a determination date of 12/31/13 and the plan is top heavy for 2014 Client doesn't have the money to fund the top heavy minimum and wants to termiante the 401k plan. What are the ramifications for the client refusal in making the top heavy mimimum?