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Showing results for tags 'participation'.
Found 4 results
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Background: We have a brand new cross tested plan. For the 401(k) portion, the eligibility requirements are 21/ 1 YOS (1000 hours). However, the owners would like a special participation date for immediate participation for themselves (no employees in either adopter). This is a plan for two new adopting employers, and the business entities were established in 2019 and 2020 respectively. For one owner, he has been performing services and on payroll since 2019. For the other owner, he started performing services on 1/3 and will be on payroll 10/1 of this year. The document has a specified place for special participation dates, but I wasn't sure what the date should be. My question is when can this special participation date be? Does it follow with when they started performing services for the business entity or when they started on payroll? In other words, with an owner who has performed services 1/3, but not on payroll until 10/1, what special participation date would I need to use? Thanks!
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Good afternoon to all, I have been asked to get your input on the following question: "Can a " 3508 direct seller" person participate in a 401(k) Plan? They are paid by way of a 1099 rather than W-2 and are recognized as "Employees" for some benefit purposes. We do not have experience with this type of "employee". If the plan defines compensation as W-2 income then they have no compensation to defer from. Maybe they make Roth deferrals or Voluntary Employee Contributions? Any thoughts or comments are appreciated." The questions is being raised on behalf of a plan sponsor who DOES wish to cover such persons if a way can be found to do so. Thank you as always.
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One of our clients has a 401(k) plan. During 2017, the employer created 2 new controlled group companies. All of the employees then became employees of one of the new companies. We were never informed of this and the 2 new companies were never added to the plan as participating employers. They continued to deposit deferrals for the employees. Do the deferrals have to be refunded? Or can this be corrected under EPCRS? Any other suggestions?
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I have an employe who has worked for a company for 4 years. However, he never worked 1000 hours in any of those years. For the 2013 plan year he worked 1000 hours and is now eligible. The plan's entry dates are 1/1 and 7/1. Which entry date do I use for him? Does he come in 7/1/2013 since that is when he met 1000 hours or would it be 1/1/2014?
