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Showing results for tags 'interest'.
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? -
Does anyone have any insight on whether interest is required on delayed (non-RASD) payments? I've read Stephens v. U.S. Air, which suggests the courts (or at least the D.C. Court of Appeals) will require plans to pay interest on delayed payments. However, I cannot find anything in the regulations that require it. Advice from more seasoned professionals is appreciated. -
I have a Cash Balance Plan year of 1/1 - 12/31. Am I able to amend the plan this month adjusting the crediting rate to the market rate of return prospectively (for March thru Dec.)?
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My divorce from ex-wife was in June of 2012. The valuation date of 401/k was 9/28/2012. Because of my ex-wife and her attorney, the QDRO has not be settled yet. I got the most recent QDRO from them today. I need help understanding two items. Line 8 of the order says that " The Alternate Payee's interest in the plan shall be $195,000.00 of the Participant's total vested account balance under the Plan as of Valuation Date. " Then line 9 it says, " The Alternate Payee's award is entitled to earnings ( dividends, interests, gains and losses) from the Valuation date to the date the award is segregated from Participants account. " Does this mean only the earnings of the $195,000.00 or all earnings of her part of my entire account to date. Since she has been delaying the QDRO it doesn't seem fair she should get anymore than what was in there at date of Valuation. My attorney quit practicing to work for a charity organization so I'm flying alone on this. I live in Houston, Texas and I appreciate any advice you can give to help me understand this better. -J
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So I'm having a hard time finding anything that allows (or disallows) a plan to not allocate any interest to employee contributions if the participant terms before becoming vested? Would this be discriminatory?
