FINC322 Lecture 14: Coverage Eligib and Participation
Document Summary
2017 cola changes: deferrals ,000, defined benefit ,000 max benefit, defined contribution ,000, highly compensated - ,000, officer/key employee - ,000, taxable wage base - ,200. Highly compensated employees: earned at least ,000 per year for 2017, 5% owners, employer can limit the highly compensated to the top 20% of the employees of the company. Master and prototype plan documents: standardized plan language, pre-approved by the irs, adoption agreement. Adoption agreement: simplifies plan design, locks out some features, this would otherwise require a customized design with greater fees and filings. 1: this would otherwise require a customized design with greater fees and filings, fill in the blank or multiple choice, standardized prototype document is much cheaper than a customized document. Employees that can always be excluded: collective bargaining employees, employees who have worked less than 1 year or 2 years in some cases, part timers less than 1,000 hours, employees under 21.
