NOTICE OF CHANGE FOR SEMINAR REGISTRATIONS:
To register for Relius Education seminars and conferences, please login or register for a new login account before proceeding. For more information, please see the Benefits of a Relius User Login Account. For assistance, please contact Client Services at 800-326-7235, and select Option 6.

Component Plans: Another Way to Design a Cross-Tested Plan [2019]
Date: 4/22/2019 Start Time: 12:00 PM (ET) Duration: 100 Min.

Description

In designing a cross-tested plan or in addressing nondiscrimination failure, one of the more overlooked “correction” tools is restructuring. Restructuring permits the practitioner to divide the plan into two or more component plans that can be tested separately for nondiscrimination. For example, the practitioner might restructure the plan so that younger highly compensated employees (HCEs) and older nonhighly compensated employees (NHCEs) are in a component plan while the older HCEs are in another component plan with the younger NHCEs. A practitioner might also add flexible family members (family members around whom the employer is not designing the plan) to the plan and then restructure the plan into component plans that facilitates passing nondiscrimination.

With the use of restructuring, practitioners may be able to establish a cross-tested plan for an employer where such a design was thought not possible. The practitioner also may be able to use restructuring to reduce the employer contribution costs for a cross-tested plan. This 100-minute Webcast uses illustrations to help you gain a better understanding of the rules for using restructuring.

Topics include:
  • Using restructuring in testing
  • Dividing into component plans
  • Plan language
  • Correction options
  • Deadlines for corrective action
  • General nondiscrimination testing in component plans
  • Restriction in creating component plans
  • Impact on 401(k) plans
  • Minimum gateways
  • Effect on top heavy
Prerequisites:

There are no prerequisites or advance preparation for this program. However, the instructor will assume attendees have at least one year of experience.

Level: Intermediate
Instructional Delivery Method
Group – Internet-Based

NASBA Field of Study: Taxes

Speaker: David Schultz, J.D.

Objectives: After attending this Web seminar, an attendee should be able to:

  1. Identify the situation where a practitioner may use component plans
  2. Apply the rules for restructuring
  3. Design a plan that is able to take advantage of restructuring
  4. Determine where to “draw the lines” for the component plans
  5. Explain the benefits of restructuring
  6. Determine how restructuring affects coverage, minimum gateways and top heavy
  7. Identify the various options for “rescuing” a cross-tested plan
  8. Identify the deadlines for taking the respective corrective actions
  9. Determine how to apply the general nondiscrimination test in component plans

How to participate

You will need a phone (speakerphone, for multiple participants sharing the Primary registrant’s authorized connection) and Internet Access. The graphics presentation and illustrations will be viewed via the Primary registrant’s Web connection, while the speaker audio portion will be via the Primary registrant’s telephone. Important Note: The user registrant must be logged in via the internet for CE purposes. Select the "Fees" link on the right side menu of this page for more information about who is authorized to connect to the program, and for the cancellation/transfer policy.

All ownership and intellectual property rights in and relating to this website and all of its contents or any copies thereof, including but not limited to copyrights, logos, trademarks, service marks, design, text, videos, sound recordings, images, links, graphics, code, concepts and themes are owned by FIS and/or its subsidiaries (collectively "FIS") or used under authorized license by FIS. Any recording, reproduction, transmission, distribution, publication, performance, broadcast, hyperlink, creation of derivative works or other use in whole or in part in any manner without the prior written consent of FIS is expressly prohibited. Without the prior written consent of FIS, you shall not insert a hyperlink to this website or any part thereof on any other website or "mirror" or frame this website, any part thereof, or any information or materials contained in this website on any other server, website or webpage.