Guest JBeck Posted February 20, 2004 Posted February 20, 2004 If controlled group member #1 amends its plan for catch up but controlled group member 2 does not until a following plan year, what is the penalty?
Mike Preston Posted February 20, 2004 Posted February 20, 2004 That the catch up provisions are not universally available and therefore not allowable in controlled group #1's plan. Correction would be required under EPCRS. At that point, your guess is as good as mine. I'm sure there are those that could come up with some interesting correction mechanisms. Or, of course, you could just let the plan be disqualified, but something tells me that isn't something you want.
Guest JBeck Posted February 20, 2004 Posted February 20, 2004 Perhpas the IRS would want the catch-up contributions returned to those who made them for any year the universal availability was not met.
FundeK Posted February 20, 2004 Posted February 20, 2004 How about providing QNECs for those individuals who would have been able to make catch-up contributions - similar to the QNEC made for not allowing someone into the plan.
Blinky the 3-eyed Fish Posted February 20, 2004 Posted February 20, 2004 That last solution could easily be discriminatory depending on who was eligible for the catch-up. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
FundeK Posted February 20, 2004 Posted February 20, 2004 Can you do an retroactive amendment along with the QNEC? Is that potentially discriminatory too?
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now