cathgrace

Thanks everyone for your responses! In case anyone is wondering, the plan administrator ultimately decided to approve the hardship distribution for 1/4th of the amount of the purchase price of the building.

Plan has the principal residence safe harbor provision. A participant is actively looking to purchase a multiplex building (4 units). He wants to live in 1 unit as his principal residence and lease the other 3 units. He is requesting a hardship distribution to purchase the building. Does this fall under the principal residence safe harbor for hardships? My concern is that the participant is technically purchasing more than his own residence. Any thoughts?

An employer provides for loan deferment for qualified individuals under the CARES Act. If a participant has already defaulted on their loan but later becomes a qualified individual, does the employer still have to give that participant the option to defer the loan (i.e., reverse the loan default)?

Thanks, MWeddell! Of course, I found your earlier discussion right after I posted this question. Very helpful.

In a safe harbor 401(k) plan (non-QACA), is it permissible to have different definitions of compensation for deferrals and safe harbor matching contributions? For example--for purposes of deferrals, compensation is defined as all compensation within the meaning of Code §415(c)(3), including bonuses. For purposes of calculating the safe harbor matching contributions, bonuses are excluded. Is that allowed?

Does participation in a state Medicaid program subject a healthcare provider (specifically, cognitive behavioral therapist) to ACA Section 1557 under the new final rule?

We recently worked with a 401(k) plan provider to draft a special enrollment amendment designed to suspend/extend auto-enroll during the transition to a new recordkeeper. The amendment basically provides that unless the employee timely opts out or elects an alternative contribution percentage/investment election, auto-enrollment should occur as soon as administratively practicable following the 30-day period after the individual receives the auto-enroll notice (once the plan goes live). If anyone does end up entering the plan late, you can self-correct under EPCRS as long as you enroll the employee within 90 days of when he or she should have been enrolled. But obviously the goal of the special enrollment amendment would be to eliminate the need for any self-correction.

Hi! First-time poster, ERISA-newbie here. Here's the situation: Parent Non-Profit Company sponsors a 403(b) plan and Subsidiary For-Profit Company sponsors a 401(k) plan. The company wants to transfer a group of employees from the Subsidiary to the Parent (i.e., within the same controlled group). My question is this: What are the options for transferring assets from the 401(k) plan to the 403(b) plan? I realize that the IRS generally does not allow mergers or transfers of assets between 401(k) and 403(b) plans. I also conclude that transferring employees to the Parent would not automatically create a distributable event in order to rollover assets from the 401(k) to the 403(b) plan, as they are transferring employment to a member within the same controlled group. Thus, there is no severance of employment that would allow for the distribution. I'm exploring other options, including a complete termination of the 401(k) plan, but I'm having trouble finding a viable solution. Any ideas?