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Showing results for tags 'profit-sharing'.
Found 4 results
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The central issue is whether or not a family member can be excluded entirely from the plan (0 deferral, 0 SH 0 PS)?
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Development company with around 50 employees in California. All of the employees would be considered NHCEs as none of them have any company equity and do not make more than $120k (Besides the CEO). All other employees would be NHCE because of this. Would like to set up a new comparability profit sharing program where the employees who did well on their projects (All NHCE) can be set to one "group" on the new comparability profit sharing plan and have the highest % rate. The HCE (CEO) would be set to the lowest % rate (1%) and thus, the remaining other employees would meet the gateway test if they were set as 0.35% (1/3 of HCE). Would this setup satisfy the cross-testing requirements along with any other requirements? Basically looking for a method to utilize profit-sharing but provide as much % possible to the employees excelling at their projects and providing as close to 0 as possible for other remaining employees (Which would include the CEO). Any advice would be appreciated!
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Client went through high turnover this year. 2 HCEs 1 NHCE > 1000 hrs 3 NHCEs terminated - 1 > 1000 hrs, 1 900 hrs, 1 < 500 hrs. All left months apart, voluntarily. Two were partially vested. 2 HCEs defer 3 NHCEs defer HCE owners want to max his allocation. Profit-Sharing has last day/1000 hr condition. I think I have to add back 2 terminated NHCEs to pass 410b Wrinkle - Plan has "New Comparability" checked as allocation. Historically, allocation has been Integrated. I think I can allocate as if "integration" was check on the AA. Just want to make sure my "bad news" is solid. -
Interesting scenario, appreciate any insight: Facts: 401(a) profit-sharing plan (ER contribution only) has 6/30 fiscal year end. Plan terminated 6/30/2017. Participant balances were rolled or distributed by prior record-keeper by 12/29/2017 March 2018, it was determined that the contribution for plan years ended 6/30/15, 16, 17 may have been understated due to an error in the definition of compensation used. Questions: Generally - how does this get unscrambled? The prior accounts have been closed, the prior plan has been terminated, however, prior participants may be eligible for additional contribution. Does the corrective contribution need to go through old plan record-keeper? Can they participants receive the contribution via check? If check - would this be considered cash distribution Any looming deadlines for the contribution to be made? Any and all thoughts welcomed.
