slburnett

Doctor plan has 4 partners and two HCEs, no NHCEs. They work at a variety of hospitals, so it is highly unlikely that the company will ever have NHCEs, so there aren't any discrimination issues with regard to counts or amounts testing. We have generally determined benefits by job classes, so the initial plan was set up using one formula for partners, one for non-partner HCEs. Could they further refine the formulas to be by person?

Client has a cash balance plan as well as 401k profit sharing plan, the cash balance plan is not PBGC covered. Covered payroll is $2.3M, PPA minimum in the DB plan is $350k. Am I correct in calculating the overall combined deductibility limit as the greater of $575k (25% of comp) or $350k, PLUS 6% of DC compensation ($138k)? So the grand total is $713k? They'd like to put 420k into the DB, and $235k into the DC, for a total of $655k, but others that I work with disagreed about the 6% DC piece on top of the 25%. Thanks for any help -

Small business (20 people) had a 412(e)(3) plan from 1999 to 2009, at which point the owner didn't have enough money to keep funding - so the plan was frozen as of 11/1/09 (Plan Year 11/1 - 10/31). Business has picked up, and the owner would like to start making contributions again. Thoughts on what to do with the service between 11/1/09 and 11/1/15? Am I correct in assuming that the amendment could be written to exclude benefit service between those dates if he doesn't want a huge contribution this year? Am I also correct in assuming that if he wants to grant retroactive service, that would be allowed (at the risk of having to fund 6 years worth of benefits)? Formula is 100% of final 3 at 25 years of service; prorated for service <25. Thank you!