R. Butler Posted July 21, 2005 Posted July 21, 2005 We took over a MP plan with standardized document in February; we prepared amendments to change it to a PS w/ Safe Harbor 401(k) Plan. Just found out employer neglected to adopt & a few a participants have accrued a benefit under the MP document. I'm trying to find a solution to this problem. The MP plan requires a 25% contribution. Client prefers to amend rather than terminate. If plan retains QJSA provisions, is there any reason the plan couldn't be amended in 2005 to a profit sharing plan with a 22% employer contribution plus a 3% SHNEC? I don't see a problem right off, but I just found out & my head is still spinning.
Blinky the 3-eyed Fish Posted July 21, 2005 Posted July 21, 2005 An interesting question, but rather than that, you could freeze the MP accrual ASAP and provide 25% of salary year-to-date. Add to that the 3% SH nonelective, and I think you are better off. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
R. Butler Posted July 21, 2005 Author Posted July 21, 2005 Thats a possibility, but there are self-employeds & pressing the the client for YTD earned income figures might not be feasible.
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