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Helpfully expound upon the restrictions for distributions of rollover amounts. Particularly, if rollover amounts remain subject to in-service distribution restrictions. The provenance of the rollover amounts perforce might affect the situation, if the rollovers proceeded from elective deferrals, Roth amounts, after-tax distributions, amongst perhaps further items.

Non-profit has a 457(b) plan and 401(k) plan. They want to terminate the 457(b) plan and have the assets distributed to the participants (2 executives). One of the executives would like to contribute pre-tax salary deferrals to the 401(k) plan from the 457(b) distribution. The definition of compensation in the 401(k) plan is W-2 plus pre-tax deferrals. The executive is arguing that the 457(b) distribution is reported as W-2 wages and I can't find anything that says it can't be done - it just feels wrong. Does anyone out there have something that either supports or opposes the executive's position?

One my plans is under CPA Audit and the auditor doesn't like that they don't automatically re-start 401k after 6 months after a hardship distribution. Is an employer required to automatically re-start 401k for a participant after 6 months? Can they require that the participant fill out new election paperwork?

I could use some input on how to correct this unique situation please... An employee was deferring pretax $750 per paycheck and submitted a request on 3/15/16 to change the election to $350 pretax and $10 roth. The change was not actually implemented until 10/31/16. The employee confirmed that they would like the contributions returned. Would you return $390 per paycheck and recategorize $10 as roth and have the client fix payroll to add $10 of her pretax as taxable wages since a 1099 will be issued for the $340 being distributed? Any suggestions?

I have a client who would like to adopt a nonqualified plan that will act to allow highly compensated employees to defer an amount equal to the excess contribution refund that the employee will receive from the employer's qualified 401(k) when the plan fails its ADP/ACP testing. I understand that 409A requires that the employee make an irrevocable election to defer compensation on or before the last day of the year prior to the year during which compensation is earned. Under the contemplated nonqualified plan, the amount deferred under the nonqualified plan would only be equal to the amount that the employee receives as a refund from the 401(k) plan. However, the deferral would be taken from current year wages and the refund would be refunded to the participant and reported on Form 1099-R. Does anyone know if it is acceptble under 409A to allow the highly compensated employee defer an amount equal to the refunded excess contribution on or before December 31 (the last day of the prior service year) when the employee does not yet know who much the excess contribution refund will be? I guess I am concerned that the dollar amount of the election is not certain at the time the deferral is made. On the other hand, if the deferral is equal to 100% of some formula/amount, then this seems like a "determinable amount". Any direction would be greatly apprecaited! Thanks!

A participant in a 401(k) plan is receiving disability from his/her employer (paid for by his/her employer). Since this income is considered taxable, can a portion of these payments be contributed to the plan (assuming they do not violate the 415 limits) as employee deferrals?