Sarah73

I can't find any info online indicate a QACA plan allows 2-6 yr graded vesting. But I do remember I saw this design many years ago. Am I wrong?

Are there any concerns that never use forfeiture account? big balance? some investments are volatile?

It is a large plan, hard to educate the participants one by one and monitor them when they turn to age 50. Any suggestion of the set up can be implement on the TPA side or payroll side?

TPAs recharacterize the catch up is commonly happens when the calendar year is complete and start the compliance testing. How should plan sponsor operates the plan or how should payroll set up to match it? Since the Catch up is not matched, participants didn't max out 401k but start catch up contribution will lose a portion of match. And the match made by payroll, it is not required to have a true up at year end to make up the match difference.

I feel this is a very basic question, but still want a more professional explanation: To become catch up eligible, does the participants need to max out the 402g limit? My understand is: to be eligible for catch up contribution, the participants need to meet the age requirement and max out the 402g limit. However, SPD indicated if you reach age 50 during the year, you can contribute catch up contribution anytime(people interpret this as no requirement for max out 402g because if the contribution is by paycheck, most employee won't max out at the 1st paycheck). This caused a lot of employees able to select a % for both contribution at 1st day of the calendar year they become age 50, and they may not max out the 402g limit at the year end. Plan is a calendar plan and catch up is not matched.

If the employee about to max out at 402g, let's say he contributed $20k, and still have$500 left. and his original contribution % is 10% pretax and 5% Roth. Either 10% pretax and 5%Roth will over $500. How should payroll to set up split this $500? Weight average? or evenly?

The plan set up by payroll match, but the employee max out earlier of the year, is that wrong to keep allocation match to employee even though there are no employee contributions in later payrolls? Match is immediately vested and the plan is not a safe harbor plan.

If the company adds in a new pay code, what procedure or regulation does the plan sponsor need to base off to determine if it's pensionable earning? Thank you

We are a big corp(10K+ employees) and currently thinking about amending our DB plan to the cash balance. Just wondering if any similar size groups have done this before and what are the risks and challenges. And we don't want to throw tons of money there for Actuaries to research before we don't even know if it fits us.

Just to check how they designed? or database stores all the individually designed plan documents?

It looks like during the period of Sept 2019 to Aug 2020, IRS opened the determination letter program for individually designed Cash Balance Plans. Is the program closed now? Does it mean it is not allowed for individual designed defined benefit plan to amend to an individual-designed cash balance plan anymore?