Design an Adoption Agreement - Case Study Example

A. Section 410(a of the Internal Revenue sets forth the minimum age and service requirements for a qualified retirement plan for the date on which the employee attains 21 years of age.i. An Employee will be eligible to become a Participant in the Plan after completing 1 year of eligible service.ii. A plan is not qualified unless it provides that an employee who is otherwise eligible to participate under the conditions of the plan commences participation no later than the earlier of be the first day of the Plan Year and the first day of the 7th month of the Plan (Heneghan et al,2007).

Explanation: A plan comprises of a mix of rank-and-file personnel and managers.B. Fixed formula of 100% of the compensation of all qualifying participants under the plan for the plan year that is the money that a worker has funded to the plan cannot be lost.C. An amount equal to a percentage of the Contributing Participants Compensation not to exceed the limits imposed by Sections 401(k), 402(g), 404, and 415 of the Code in effect at the beginning of such taxable year for example, In safe harbor 401(k) plans, all necessary employer aids are always 100 percent bestowed.i. As of such times established by the Plan Administrator in a uniform and nondiscriminatory manner.D. Yes the employer will be making matching contributions because the Actual contribution percentage (ACP) test requires that the employee and matching contributions provided for highly compensated employees be proportional to those for no highly compensated employee.

An amount equal to 100 percent of such Contributing Participants Elective Deferral which does not exceed 50 percent of the Contributing Participants Compensation (Leve et al, 2007)..E. Vesting schedule for employer profit sharing contributions and matching contributions if applicable is made as Full and immediate vesting (for use with the safe harbor choice).I. Yes if the participant diesII. No if the participants incurs a disabilityIII. Yes if the participants satisfies the condition for early retirement age.IV. Forfeitures will be reallocated proportionally to remaining Participant accounts.F. Withdrawal for profit-sharing or matching contributions will be allowed using the hardship per se rule.I. Yes a participant may request a distribution of his or her elective deferrals on account of hardship pursuant to the hardship per sue rule since the amount of elective contributions available for a hardship distribution cannot be more than the amount of the employees total elective contribution.II. Yes a participant may request a loan pursuant to the legal requirements for plan loan since many 401(k) plans permit loans to participants.G. The Normal retirement age under the plan shall be 59.5 years.The early retirement age under the plan shall be 55 years since if you are age 55 or older there are different rules that apply depending on your age. H. A participant shall be responsible for directing those accounts that the Plan Administrator may designate from time to time in a uniform and nondiscriminatory manner of his /her individual account.

A participant may make changes to the investment within his / her individual account quarterly since the rules impose a minimum on the frequency of changes among the three core investment options, requiring at least quarterly changes (Heneghan et al, 2007).I. Service will be determined on the basis of elapsed time since it is generally determined in reference to a 12-month period.Compensation will mean all of each participant’s Wages since a plan’s compensation definition must satisfy rules for determining the amount of contributions.

An automatic admission 401(k) plan allows you to automatically register employees and place deductions from their incomes in certain default investments, unless the worker elects otherwise. This is an effective way for many bosses to increase their contribution in their 401(k) plans.i. (1)Very valuableii. (2) Valuableiii. (1) Very valuableiv. (1) Very valuablev. (2) Valuablevi. (2) Very valuablevii. (3) Moderateviii. (2) valuableix. (1)Very valuablex. (2) Valuablexi. (1)Very valuablexii. (3)Moderate Work citedHeneghan, Carl, et al.

"Hypertension guideline recommendations in general practice: awareness, agreement, adoption, and adherence." British Journal of General Practice 57.545 (2007): 948-952.Leve, Leslie D., et al. "The early growth and development study: A prospective adoption design." Twin Research and Human Genetics 10.01 (2007): 84-95.