Guest carolinawind Posted September 23, 2004 Posted September 23, 2004 If an employee passes away during a plan year....does a contribution in a Keough Plan still have to be made for this employee if he had worked most of the year? Thanks!
AndyH Posted September 23, 2004 Posted September 23, 2004 The answer is specific to the provisions of the particular plan document.
SoCalActuary Posted September 23, 2004 Posted September 23, 2004 To expand on the answer: If the employee had worked 500 hours, then discrimination testing is affected. In addition, many standardized prototype DC plans require a contribution either if the eligible employee worked more than 500 hours or if employed at the end of the year. Non-standardized prototypes and many volume submitter plans do not require a contribution, but may require some contribution if the plan would fail to meet 410(b) coverage requirements. Finally, please note that documents sometimes have specific provisions for contributions upon death, disability or retirement that differ from contributions for terminated employees. Hope this helps you with your research.
jevd Posted September 23, 2004 Posted September 23, 2004 Just a bit of History. Keogh Plans. Named after Eugene Keogh. Major sponsor of 1962 bill HR-10. Also known as HR-10 plans. Designed as Qualified Plans for the self-employed. Since the 1980s no major differences to Q P s for Corporations. One of the most mispelled plans in my 25 make that 30 year career. Keough Kehoe Keog Key-Hole Key Ho Anyone else have any more? JEVD Making the complex understandable.
Lori Friedman Posted September 23, 2004 Posted September 23, 2004 jved, I once handled a request for information about a Theo Plan. 30 years, huh? Please tell me something...were dinosaurs really gray? Lori Friedman
AndyH Posted September 23, 2004 Posted September 23, 2004 Actually, perhaps I should amend my answer because I know a plan that does not address what happens if someone dies or passes away. The client required that every such reference in the plan and SPD had to be changed to "passing on". There is no death benefit section; only a passing on benefit section.
Blinky the 3-eyed Fish Posted September 23, 2004 Posted September 23, 2004 For kicks you should have sent him a copy with "dirt nap" substituted. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
SoCalActuary Posted September 23, 2004 Posted September 23, 2004 jved: Did you actually administer pre-ERISA plans? Maybe you actually created EBS-1 forms too? I did, and even had advanced training on it in 1973. Back then, we even worried about how Isadore Goodman felt on pensions.
jevd Posted September 23, 2004 Posted September 23, 2004 We did handle Pre-Erisa Plans and filed the EBS -1. and the only dino I saw at the time was on the Sinclair Gas stations.It was Green BTW I used to buy Super Shell for l9.9 cents and we were horrified when it went to 50 cents and we had to get up at 4:00 A. M. for our 10 Gal limit. JEVD Making the complex understandable.
Lori Friedman Posted September 23, 2004 Posted September 23, 2004 Ah, the 1970s...I remember them well... Long gas lines, double-digit inflation, and really ugly clothes and haircuts. Lori Friedman
SoCalActuary Posted September 24, 2004 Posted September 24, 2004 Ah yes, and a girlie-boy for president along with a clutz and a crook.
Guest carolinawind Posted September 27, 2004 Posted September 27, 2004 Would it make a difference if the employee who passed away is also an owner of the company?
SoCalActuary Posted September 27, 2004 Posted September 27, 2004 What the document says ... goes. If your document says to allocate, you are stuck. However, if you have discretion on amount by group, it is not discriminatory to give zero allocation to the owner.
rcline46 Posted September 27, 2004 Posted September 27, 2004 HR-10 plans disappeared in 1984 with TEFRA. Its been 20 YEARS!!! Where do people come up with this terminology??? Next thing you know, we will be getting questions on how to implement class year vesting! TOOOOOOO many dinosaurs!!!!! (BTW I started working on software for pensions in 19 (GULP) 7 (DOUBLE GULP) 1!!! So I can talk about dinosaurs!!! Pay as you go funding, true individual level premium, insurance company rates, both current and guaranteed, 990's. Then designed our annual administration system for ERISA (the Death Knell of Pensions!!) in 1975, rewrote it completely in 1983, 401(k) daily val software in 1984...... And still Keogh plans live!! Well, at least in the vernacular. My biggest problem is remembering regulations that never existed!!! Keep having fun.
Tom Poje Posted September 28, 2004 Posted September 28, 2004 jevd: wasn't that what inspired the banana boat song? Ke - ogh Ke - e -e - ogh Keogh come and I wanna go home RCline: my hair seems to be graying a lot faster than yours and I don't go back that far. dang, I only go back to the mid 80's. what's up with that.
AndyH Posted September 28, 2004 Posted September 28, 2004 Were the marching guards chanting Ke-Oh in the castle in the Wizard of Oz?
jevd Posted September 28, 2004 Posted September 28, 2004 Its time for me to retire to the home for aged pension professionals. "TOTO, were not in Kansas anymore" JEVD Making the complex understandable.
rcline46 Posted September 29, 2004 Posted September 29, 2004 Tom, that's because my grey hair fell through and out my chin! Nothing on top to get grey!
Tom Poje Posted September 29, 2004 Posted September 29, 2004 oh, someone told me your head was on upside down!
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