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Showing results for tags 'exclusions'.
Found 5 results
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A group of physicians is considering a cross-tested combination, 401(k) and cash balance. One owner-doctor is Muslim and is questioning the hypothetical interest on the allocation when expressed as a fixed-rate. He is fine with the 401(k) assets being market-driven, but has concerns about the cash balance allocation. 1. Anyone ever handle anything similar? 2. Can the hypothetical interest be 0 for his allocation class or is that a reduction? 3. Is there a better way to explain the interest part that may avoid his objection? -
We are currently bargaining for a first contract with an employer. The Employer currently has a 401k plan in place and has stated that union members cannot participate in the plan and have pointed to language in their SPD which states that union employees whose employment is governed by a collective bargaining agreement under which retirement benefits were the subject of good faith bargaining are excluded from the plan. (The Employer is offering a separate 401k plan for union members with lower contributions). The exclusion of union members seems permissible to me. Am I missing something? Any feedback would be appreciated.
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Non-profit organization has two full-time employees in management positions, neither of which is highly compensated. They also have nurses who are on-call and will receive $2-$4 per hour for being on-call. Each nurse is on-call 24 hours per week, which means a nurse would have 1,000+ in a year just for on-call time. A nurse may be called in on a case, and would be paid regular hourly compensation (at a nurse's regular pay rate) for those hours. The question is whether a 401(k) plan can exclude the on-call time and pay for eligibility, participation and contribution calculations. Thanks!
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We have an existing 401(k) safe harbor plan with one year of service, age 21, quarterly entry dates. Plan Sponsor now wants to exclude certain employees from the Plan (a division of the Plan Sponsor) that would make current participants ineligible for the Plan. The Plan will easily pass coverage. I am sure that this can be done but have a colleague that says these employees will continue to be eligible even if now in an excluded class. Any thoughts greatly appreciated.
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Hoping someone can enlighten me Plan is Safe Harbor Non-Elective 3%.(SHNE) Age and service waived as of 1/1 for NON-seasonal employees. Seasonal Employees are always excluded. Eligibility is 21 and 1 year of service (1000 hours in 12 month period) with dual entry 1/1 and 7/1 I'm being told that as long as the Plan can pass coverage then the Seasonal employees will NOT receive a SHNE contribution even if they have met the 21/1 year and entry requirements. Something doesn't seem right - isn't this the very definition of discriminatory? The Seasonal people are not covered under a different Plan. How does one go about defining Seasonal? Do you write a very specific definition into your Plan Documents? The client grows different crops and there are 3 seasons. Can you exclude one season (say Summer season) and not Fall and Spring?
