My client would like to change hours required for a vesting year of service from 1000 to 250. They would like to apply it to prior years of service for any active employee. I tend to think if I change the definition as of current date, past years would require 1000 hours, which doesn't satisfy their intention. I believe they would be open to applying the new vesting year of service definition to all employees with benefits still in the plan (including those who terminated prior to the amendment). Retroactively changing the hours of service requirement would involve recalculating distributions and is not a good option as this is a large plan. My colleague thinks this is possible through language in the Board Resolution for the amendment or the Preamble to the amendment. Stating that this would apply to anyone with a benefit remaining in the plan (or possibly any active employee with a benefit remaining in the plan). Do you think this is correct?

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Hello - I notified my 401k administrator in February that I needed to remove excess contributions from the plan (I had contributed to two different plans through two different employers. Administrator confirmed in March that the refund would be processed by 4/15. The refund still has not been processed, and I can't get an update from the employer. it is preventing me from filing my tax return, and I am also concerned I will be double taxed on the amount despite having provided sufficient notice and received confirmation that the distribution would be processed timely. How can I get this resolved, and is this an ERISA violation?

An S Corporation with the same person as sole owner and only employee has a Solo-401(k) that's been in place for a two years. (1) Can employee deferrals and employer contributions to the Solo-401(k) be made after 12/31 but before the owner/employee files her tax return? (2) Also, does the W-2 for the owner/employee need to document the elective deferrals?

The plan currently allows only lump-sums 60 days after date of term. All participants are currently active with no plans to leave or retire. I assume no one has a problem with me adding a) the ability to defer the distribution of an account following termination of employment, or b) adding installment options? All of those pesky rules that make this essentially impossible in a 409A do not apply here.

I am trying to determine if the fees charged by the CPA firm to audit the large plan can be charged to participant accounts or taken from forfeitures. The plan document (SPD) says the following: The Plan will pay some or all Plan related expenses except for a limited category of expenses, known as "settlor expenses," which the law requires the employer to pay. Generally, settlor expenses relate to the design, establishment or termination of the Plan. See the Plan Administrator for more details. The expenses charged to the Plan may be charged pro rata to each Participant in relation to the size of each Participant's account balance or may be charged equally to each Participant. In addition, some types of expenses may be charged only to some Participants based upon their use of a Plan feature or receipt of a plan distribution. Finally, the Plan may charge expenses in a different manner as to Participants who have terminated employment with the Employer versus those Participants who remain employed with the Employer. Is this an allowable administrative expense or a prohibited transaction?