BobbyV

I am under the impression that QACAs could have a three year cliff vesting schedule but six year graded is not allowed..

"Soon"

What kind of plan is it? Does the husband's plan document say anything about automatic inclusion of controlled group members?

I have fond memories of Schedule P

In addition to all of the above my two cents worth is that the investment fiduciary will need to be sensitive to the plan's liquidity needs as participants retire. Looking ahead to who accounts for how much of the plan assets and forecasting when they are likely to want to be paid is important.

Our group fixed annuity has a minimum guaranteed rate of 1.0% and is currently crediting 1.95%

For what its worth I think Bill P. is on to something. I think December 1 would be the drop dead date for a 3% non-elective safe harbor plan if made effective retro to the beginning of the year.

There is something in the dim recesses of memory that says that bankruptcy law does not allow for additional extensions of credit during bankruptcy without the bankruptcy court's permission. I believe this applies to all kinds of loans including those from 401(k) plans. Your client is best off discussing the matter with legal counsel.

Yeah, mean people suck.

If they're in a community property state it probably doesn't matter.

Logic would seem to dictate that you have no plan if you don't follow the terms of the governing document.