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Showing results for tags 'irrevocable election'.
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I have an interesting situation that I don't know how to fix so I'm hoping someone out here has come across something. A new 401(k) plan was adopted 1/1/2020 - not safe harbor with discretionary match and profit sharing. Volume submitter plan document allows for irrevocable waivers and the plan sponsor wanted it because many employees wanted no part of the plan due to religious beliefs. We received the irrevocable waivers in December of 2019. We have now received the 2020 census data - every NHCE signed an irrevocable waiver and the only eligible plan participants are the owners. There were 7 NHCE who exceeded the statutory eligibility requirements so they are showing up as eligible, not benefiting, for 410(b). These employees want no contributions from the employer for religious beliefs which is why they signed irrevocable waivers in the first place. Any ideas out there about how this should be handled?
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Good afternoon to all, A plan of ours has a 3 doctors plus staff. While all docs are HCEs, only one is also Key - the 100% owner. The other 2 doctors have signed irrevocable waivers of participation and are not part of the plan. They are in the census in our software program, classified as being in an ineligible class of employees. When we run the Top Heavy calculation, we get error messages saying that we have failed to meet the TH requirements because these two doctors are not getting a TH minimum contribution. If they have signed the irrevocable waiver, it is our understanding that they are not eligible for any portion of the plan at any time, including the TH minimum. Are we correct on this? Yes we have read the plan document and yes we have a call in to the software provider to see if we are coding things incorrectly. But in the meantime we wanted to ask the experts if these two doctors are supposed to be counted for any purposes in anything in the plan, Top Heavy or anything else? Thanks for any advice and don't shoot the messenger. Per usual I am being asked to resolve something on a plan that is not mine.
