401(k) Plan

Question 1

To what plans can a CODA provision be added to allow for elective deferrals?

Answer 1

-Traditional profit sharing
-ESOP
-Stock Bonus Plan

Question 2

Employee contributions are subject to what kind of testing in a 401k plan?

Answer 2

ADP

Question 3

Employer contributions are subject to what kind of testing in a 401k plan?

Answer 3

ACP testing

Question 4

Are catch up contributions at age 50+ included in the annual additions limit?

Answer 4

no

Question 5

What is the max loan you can take from a 401k or profit sharing plan?

Answer 5

The lesser of the vested account balance or 50,000 (outstanding loan balance within past 12 months even if repaid, is included in the 50,000 max)

Question 6

what is the max repayment period for a loan from a 401k or traditional profit sharing plan?

Answer 6

5 years (unless the purpose of the loan is to secure a primary residence)

Question 7

Is a default loan from a 401k plan subject to regular income tax and penalty?

Answer 7

yes

Question 8

Can elective deferral be aggregated across multiple jobs?

Answer 8

No! (the one exception is a 457 plan)