jquazza Posted November 20, 2003 Posted November 20, 2003 A new client is trying to establish a 457 plan. The sponsor started withholding deferrals before even signing the plan document (which hasn't been done yet) and has been holding the withheld deferrals in its general account. How do you fix that problem? /JPQ
mbozek Posted November 21, 2003 Posted November 21, 2003 Refund the deferrals to the participants and then have the deferrals commence as of the first day of the month after the plan has been adopted. Why hasnt the plan been adopted? mjb
jquazza Posted November 22, 2003 Author Posted November 22, 2003 The sponsor just didn't sign any documents yet. The broker who sold the plan was anxious to get his commission and got them started on a form he designed himself. Is that surprising to you? /JPQ
mbozek Posted November 22, 2003 Posted November 22, 2003 NO. But how does the broker think the deferrals can be made on a tax deferred basis if no plan has been adopted. mjb
jquazza Posted November 24, 2003 Author Posted November 24, 2003 I don't think it matters that much to him. Anyway, thanks for your response. /JPQ
mbozek Posted November 24, 2003 Posted November 24, 2003 How is the client ging to fix the problem? mjb
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