"I've transitioned from a role in DB actuarial to governmental 401(a) plan administration and I'm trying to wrap my head around all the ways a governmental 401(a) plan differs from an ordinary 401(a) plan. I have many questions, but the first I'll ask is about IRC Section 411(a)-4(b). Does this language apply to governmental plans? The plan I work for forfeits the employee contributions of a non-vested member if they fail to apply for a refund of employee contributions within five years of termination. This is based on a state law requiring that any non-vested member apply for a refund within five years of termination. The plan administration contacts any affected participants annually during those five years to inform them of the possibility of forfeiture and to recommend they apply for a refund. In the case of forfeiture, the member can later apply to have the balance reinstated, but only if they provide an appropriate reason why they could not respond to our earlier communications. The forfeiture of employee contributions unsettles me, even if the participant is notified beforehand. We could have an out-of-date address if they moved when they terminated employment. Am I making a mountain out of a molehill?"

"Client has immediate eligibility for deferrals and safe harbor nonelective. The client allocates profit sharing for those who meet the 12-month 1000 hour Year of Service requirement as per the plan document. I believe we can exclude from the gateway minimum those who did not meet the Year of Service but are receiving the 3% safe harbor by using the statutory exclusion. And of course they are excluded from 401(a)(4) testing on profit sharing. I know quick entry group must pass top heavy minimum which is not a problem since the safe harbor 3% is funded from date of hire."

"Non-safe-harbor 401k plan has a discretionary match. Compensation excludes bonuses. Both the ADP test and the ACP test pass using 415 comp and using comp reduced by bonuses. However, the 414s test fails by more than 3%. What, if any, correction is required?"