Guest AngelQ Posted January 13, 2000 Posted January 13, 2000 Our 401(k) is through our payroll service. Unfortunately, they have given me some bad advice and now our plan is too liberal (immediate entry, eligibility at age 18, 100% immediate vesting). I understand that most of these benefits are "protected" and once given can't be redacted. 1. What is necessarry to terminate a plan? 2. After I terminate the plan, can I just start a new plan with the features I want? 3. Where do I find competent professional help to draft the plan and administer the plan? (Needless to say, I am unhappy with our payroll service). *Thank you all. I enjoy this message board and have learned a lot!
Guest Posted January 13, 2000 Posted January 13, 2000 You do not need to terminate the plan, you could simply amend to age 21, 1 yr svc and change vesting if you desire for all new ees. Since discrimination testing can be done splitting the employees into two groups - those with 1 yr /age 21 and those without, the fcat you have more liberal entry shouldn't really effect anything. So, the only thing possible liberal about your document that could hurt is the vesting. so, your basic document probably isn't bad, but could be improved in regards to this area. please feel free to contact me if you need more info.
david rigby Posted January 13, 2000 Posted January 13, 2000 No disagreement with Tom. There is one more thing you probably need: some competent advice. You may need some independent review of your plan and/or your entire benefits package. Not to be self-serving, but looking for a good benefits attorney and an experienced *independent* benefits consultant would be a wise move. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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