TPApril Posted July 8, 2014 Posted July 8, 2014 Is the buy-back provision (of rehired employees who wish to restore their prior distribution in order to have their nonvested balance restored) a required provision or is it optional?
TPApril Posted July 8, 2014 Author Posted July 8, 2014 Existing 401k plan document appears to be completely silent to this.
ESOP Guy Posted July 8, 2014 Posted July 8, 2014 If a prototype have you looked in the base document? It should have the provision as it is required.
KJohnson Posted July 8, 2014 Posted July 8, 2014 Is there a chance that the Plan does not provide for forfeitures upon a complete distribution of the vested account balance so that the only forfeitures are based on five one year breaks in service? If so, you may not need the "buy back".
TPApril Posted July 9, 2014 Author Posted July 9, 2014 This is not a prototype and the provisions says terminated participants forfeit upon incurring "a Break in Service"
KJohnson Posted July 9, 2014 Posted July 9, 2014 I think you have an issue...What is below is from the determination letter check sheet. http://www.irs.gov/pub/irs-pdf/p6389.pdf b. If any part of the employee's account balance may be forfeited before the participant incurs five consecutive one year breaks in service, does the forfeiture occur as the result of a distribution on termination with opportunity for restoration as required by regulations? [0290]
BG5150 Posted July 9, 2014 Posted July 9, 2014 Did you ask the people who wrote the document? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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