401(k) with NQDC Wrap plan

[Dan]

I have a client interested in adding a NQDC plan because their 401(k) plan always fails ADP generating large refund. The employer is large and safe harbor is prohibitively expensive. They will limit deferrals into the NQDC so that they will not exceed 402(g). Then transfer enough deferrals into 401(k) to pass ADP. This seems to be in-line with the new regs on 409A.

With this type of wrap plan, when it is time to transfer out of the NQDC into the 401(k), how is the actual transferable amount calculated? I am new to NQ but haven't found any information on this point. Would we transfer shares at cost or at the value at the time of the transfer?

[Guest TCW]

I don't think it matters, other than the attribution of gains and losses to the compensation deferral account of the participant ... a bigger issue I think.