Search the Community
Showing results for tags 'mid-year amendment'.
Found 3 results
-
Facts: 401(k) non-safe harbor plan with allocation conditions of 1,000 hours and last day w/waiver of those conditions for Death, Disability and Retirement. Plan Year is 10/01. Question: Can I remove the waiver of the service and last day requirement for Retirement mid-year? I'm thinking no, because even if an employee hasn't retired yet and does in the future; he/she would have already earned the benefit. I'm I over thinking this? Thank you, Spodie -
I'm sure the answer is out here somewhere, but I'm in sort of a hurry. Sponsor acquired another organization in a 410(b)(6)© transaction. The acquired company has a Safe Harbor Plan (QACA), and the sponsor has a regular safe harbor match plan. Is there anyway these plans can be merged mid-year? My initial reaction is "NO" because of the mid-year amendment rules around safe harbor plans, but the sponsor pushing to merge to save administrative expenses. Obviously, they'd get the benefit of the 410 transition rules for coverage purposes. Any wiggle room here?
-
We had a Safe Harbor 401(k) plan in 2013. During that year we adopted a Cash Balance plan. It had started with an eligibility window that brought in Employee "A". ("A" is not eligible for the 401(k) Plan in 2013 as of the date of this post.) Turns out, the plans cannot satisfy the Special Gateway requirement because "A" did not get a benefit in the 401(k) plan. The perfect solution would be to adopt a corrective amendment within 9.5 months admitting "A" into the 401(k) plan and giving him the same 7% as all others. Question: Would a corrective amendment that admits a new participant constitute an impermissible (mid-year) amendment of a Safe Harbor plan? I think it is permissible because it does not conflict with anything in the 2013 Safe Harbor Notice. It is also the kind of amendment that IRS says it would be inclined to permit (but to my knowledge, they have not yet expressly permitted). What do you think? Thank you very much.
