Compliance Testing Sponsor User's Guide. Reference Material

Transcription

1 Compliance Testing Sponsor User's Guide Reference Material

2 Contents Chapter Introduction to Compliance Testing... 5 What is Compliance Testing?... 6 Using This Guide... 6 Conventions... 6 Screen Documentation... 6 Chapter Welcome & Getting Started... 8 Welcome: Main Page... 9 Welcome: Page Exit Disclaimer Chapter Terms & Conditions Terms & Conditions Chapter Plan Information Plan Information: Review Form 5500 Information (A) Plan Information: Review Form 5500 Information (B) Plan Information: Review and Make Changes to Provider Information Plan Information: Review and Make Changes to Form 5500 Contact Information Plan Information: Review Compliance Information (A) Plan Information: Review Compliance Information (B) Plan Information: Review Additional Plan Information (A) Plan Information: Review Additional Plan Information (B) Plan Information: Review Plan Features for Accuracy Review and Make Changes to the Contribution Rules and Formulas Plan Information: Page Exit Chapter Census Census Main Page Census: Page Exit (Census Information) Census Catch-up Contribution (Calendar Year) Census Catch-up Contribution (Off-Calendar Year) Census (Add) Employee Detail Census: Plan Audit - HCE/Key Determination

3 Census: Plan Audit - Review Limit Failures Plan Audit - 414(s) Compensation Definition Census: Page Exit Chapter Census Discrepancy Messages Discrepancy Messages Chapter Contributions Contributions Census Complete Census Calculate QMAC (Safe Harbor Employer Match) Contributions: Page Exit (QMAC) Census Calculate QNEC (Safe Harbor Non-Elective) Contributions: Page Exit (QNEC) Census Calculate Employer Match Contributions: Page Exit (Employer Match) Contributions Calculate Profit Sharing Contributions Calculate Profit Sharing Group Assignments Contributions: Page Exit (Profit Sharing) Contributions Calculate Forfeitures Contributions: Page Exit (Forfeiture Reallocation) Contributions Calculate Top Heavy Minimum Contributions: Page Exit (Top Heavy Minimum) Chapter Test Results Tests: Run Tests (less than 10,000* employees) Tests: Run Tests (10,000* or more employees) Tests: Review Test Results Tests: Corrective Contribution Tests: Excess Distribution (Vesting Percentage) Tests: Excess Distribution (Withholding Forms) Tests: Excess Distribution (Enter Withholding) Tests: Top Heavy Minimum Balance Due Chapter Interim Testing Interim Testing Chapter Troubleshooting Welcome/Getting Started:

4 Plan Information: Census: Contributions: Tests: Chapter Definitions Terminology and Definitions: Chapter Learn More Welcome Plan Information (Contributions & Test Results) Chapter Page Exit Welcome Plan Information Census Contributions Chapter Plan Manager Notification Welcome Plan Information Census Contributions Test Results

5 Chapter 1 Introduction to Compliance Testing This chapter will introduce you to the Compliance Testing application. You will discover information about the following topics: Outline of the major features of the product Tips for using this guide Navigating through the application Accessing helpful content contained within the site. Future chapters will include detailed information about each and every step you will see along your way through compliance testing.

6 Compliance Testing What is Compliance Testing? The application provides the ability to perform year-end or interim Compliance Testing. This includes the following capabilities: Review and verify plan information and features Manage participant census data Make additional employer contributions Run tests and verify results Process corrective measures (if necessary) Using This Guide This guide is a reference tool that provides descriptions of every option and field on each step found in this application. You should use this guide as an aid in helping you through the application. It provides details that outline the impact of every change you make. It also provides details on how to correct issues you may discover along the way when incorrect or incomplete information is entered. Conventions To help you quickly locate important or additional information, the following content appears shaded: Note: Helpful information for the current topic/procedure. Important: Necessary information crucial for the current topic/procedure. Tip: Information to increase your speed and efficiency while using the application. Warning: Your actions may cause unexpected consequences or errors. Screen Documentation The following page outlines how each step of the application is documented. Reading this material, you should understand the following: Purpose for each step, Detailed description of every field on the page and the impacts of that field on the application Available actions that can be taken Dynamics that control the content presented on the page. 6 Introduction

7 < Page Name > Overview: A high-level description of the page. What is the purpose of this page? What major activities occur on this page? Page Sample How did I get here? Entry points into this page. What happens next? Exit points from this page. Fields: Element Name Description < Label Name > < Definition of the field including 1 or more of the following > Functional Impact How is the element used in the application? What impact does it have to the feature? Availability The element may not always be available. Dependencies This element may be dependent on another. Interactions What happens when interacting with this field? Required? - For editable fields, is this element required? Defaults What appears in the element when entering the page? Min/Max What minimum/maximum values are available Available Actions: Action Description < Button or Link Name > What happens when this button/link is clicked? Page Dynamics: Identifies special considerations for the page, including conditions that control the viewable content, the impact of security, or special notifications that may appear. 7 Introduction

8 Chapter 2 Welcome & Getting Started This chapter will help you get started with Compliance Testing. You will receive information related to the first few pages of the application. Specifically, you will become familiar with the following topics: Discovering the features of the Welcome page What happens when you decline the Welcome options Reviewing legal disclaimers Whether you are a new user or a returning user, you will want to make sure you get started on the right foot.

9 Welcome: Main Page Overview: The Welcome page is the primary entry point into the Compliance test notebook. This page is presented every time you access ecompliance. How did I get here? Clicked the ecompliance link from TRAC Web Plan Sponsor or you selected the Back button from the Welcome Exit or Terms and Conditions page. What happens next? Compliance Testing/Form 5500 Reporting: You will now access the live test notebook and be presented with the Terms and Conditions page (if you have not already accessed the page, accepted the Terms and Conditions and saved your acceptance selection) OR the last accessed when you exited the application from the previous login session. Interim ADP/ACP testing: You will be presented with the Select Census page. More information and functionality to come in Release 5 for interim testing. Fields: Element Name Welcome to Compliance Testing, what would you like to do? MM/DD/CCYY MM/DD/CCYY <Begin/Resume> Compliance Testing and Description Static header that will display the actual name of the user. Selection that indicates you want to perform compliance testing and form 5500 reporting. The label is presented with Begin or Resume 9 Welcome

10 Form 5500 Reporting or MM/DD/CCYY MM/DD/CCYY Review Test Results Informational Message Compliance Testing. Begin is presented when you are coming into the application to make your selection for the first time for the test year and Resume is presented when you have begun but not completed compliance testing/5500 reporting. You will see Resume until the compliance tests have been run and results are available; once test results are available the label will present Review Test Results. The date presented is the beginning and ending dates for the plan year being tested. Prior Test Year has not been completed. Complete Prior Test Year testing before beginning Current Test Year testing. This message is presented when: Prior test year Compliance Testing has not been completed (through Test Results) Testing has not been declined altogether for the prior test year. You will not be able to work with the current test year until the prior test year Compliance testing is completed through Test Results or Compliance Testing is declined. Perform Compliance Testing First sub-option label for the Compliance Testing and Form 5500 Reporting selection. Learn More Link that will present additional information around Compliance testing. If Yes is selected, we will review this plan's census data, contribution calculations, as applicable, and perform the required nondiscrimination and coverage testing that is detailed in your Plan's service agreement. This may include, but is not limited to: ADP/ACP testing, 415/Annual Additions Testing, Top Heavy Testing, and Coverage Testing. If No is selected, you will be responsible for reviewing the required nondiscrimination and coverage testing for your plan or you may engage another service provider to assist you. Yes, I would like to perform Compliance Testing for the CCYY plan year. No, I am declining Compliance Testing for the CCYY plan year. Secondary Radio button Header Perform Form 5500 Reporting By selecting Yes will both Review Compliance Testing Information pages in the Plan Information section of the testing steps. Declining this option presents a free form text area to specify why you are declining Compliance Testing. The Save and Continue button is disabled until details are entered in the text area. You can enter up to 250 character limit so there is a lot of room to put as much or as little details as you d like. Selecting No will also send a notification to the Retirement Plan Account Manager (RPAM) letting them know you have declined the service when you select the Save and Continue button. Second sub-option label for the Compliance Testing and Form 5500 Reporting selection. 10 Welcome

11 Learn More Link that will present additional information around 5500 reporting. If Yes is selected, we will prepare a signature ready Form 5500-EZ, 5500-SF or 5500 and related schedules as required prior to the plan's annual filing deadline. In addition to these forms, we will also prepare the Form 8955-SSA and file on your behalf, when applicable. The Form 8955-SSA may not be required annually. The applicable Form 5500 series and 8955-SSA is generally completed later in the plan year after the compliance testing services have been completed. If No is selected, we will not prepare the Form 5500-EZ, 5500-SF, 5500 and related schedules or the 8955-SSA. You will be responsible for determining which are applicable as well as completing the filing on your own or with the assistance of a third party. Yes, I would like to answer for Form 5500 Reporting questions and have Fund Company perform this service for the CCYY plan year. No, I am declining Form 5500 Reporting services for the CCYY plan year. By selecting Yes will both Review Form 5500 Information pages in the Plan Information section of the testing steps. Selecting No presents a free form text area to specify why you are declining Compliance Testing. The Save and Continue button is disabled until details are entered in the text area. You can enter up to 250 character limit so there is a lot of room to put as much or as little details as you d like. Selecting No will also send a notification to the RPAM letting them know you have declined the service when you select the Save and Continue button. Helpful Documentation TBD coming in Release 5. MM/DD/CCYY MM/DD/CCYY Begin/Resume Interim ADP/ACP Testing This option allows you to perform the interim testing for ADP/ACP for the current year. Available Actions: Action Save and Continue Exit Description Selecting Save and Continue moves you to one of the following steps/pages: The first step of the wizard process for compliance testing. The Welcome Exit page (when both sub-options for Compliance Testing and Form 5500 Reporting are No). The last page accessed in the wizard during the previous ecompliance session for the test year notebook. Closes the application, no selections are saved. 11 Welcome

12 Page Dynamics: If you are unable to select (or not) the Form 5500 Reporting secondary option all that means is the Fund Company has already made the selection for you by default. This is at a higher level than just the plan you are working with and there is no way for you to override the selection. Accepting the Terms and Conditions and saving that acceptance will disable the secondary options for Compliance Testing and Form 5500 Reporting. If you need to make an update to the secondary options for whatever reason, you can call your RPAM and they can help you reset the Welcome page so those secondary options are available for selection again. 12 Welcome

13 Welcome: Page Exit Overview: A hard stop page that prevents you from moving forward in the application. Your only options from any hard stop page is to Save and Exit or move Back to the previous page(s). How did I get here? Selecting No to both Perform Compliance Testing and Perform Form 5500 Reporting on the Welcome page then selecting the Save and Continue button. What happens next? Selecting Save and Exit saves your progress and closes the browser. Selecting Back will take you back to the Welcome page where you can either exit the application or change your selections. Fields: Element Name Header message Exit condition Footer message Available Actions: Description Based on the information you provided, this process cannot be continued for the following reasons: Both Compliance Testing and Form 5500 reporting service have been declined. Contact your Plan Manager to discuss further options regarding Compliance Testing and Form 5500 Reporting. Action Save and Exit button Description Selecting the Save and Exit button closes the browser window, the Online Testing Progress is saved on the exit request so if you come back into ecompliance you ll get the same exit page after Welcome as long 13 Welcome

14 as you don t change the options previously selected. Back button Selecting the Back button returns you to the Welcome page. Page Dynamics: Refer to Chapter 12 (Page Exits) for more details regarding the Welcome page exit. 14 Welcome

15 Disclaimer Overview: A stand-alone, read-only page that presents the pre-defined Disclaimer text. No action can be taken from the Disclaimer page. How did I get here? Clicked the Disclaimer link from any page in the application. (The only page that does not contain the Disclaimer link is the Disclaimer page.) What happens next? Selecting the Close button returns you to the page where you clicked the Disclaimer link. Fields: Action Disclaimer text Description Text basically stating that the record-keeper is not responsible for any costs/fees/expenses and that the responsibility is solely with the Employer. The following is the default text provided however clients can customize this text to suit their needs. The Employer agrees to indemnify and hold the record-keeper and its officers, directors, employees, representatives, agents, and affiliates harmless from any costs, expenses, penalties, or liabilities arising out of the record-keeper s use of the information provided in this application to provide the Services. The Employer agrees that if incorrect, incomplete, or late application information is provided to the recordkeeper, the Employer will be solely responsible for paying: (I) additional service fees to the appropriate party/parties if the Employer requests the record-keeper to make the adjustment to or reissue forms, participant statements, compliance tests, and/or Plan Amendments; (II) costs to correct Plan operational or form defects; and (III) any penalties, fees, or sanctions imposed by the internal Revenue Service or Department of Labor as the case may be. 15 Welcome

16 Available Actions: Action Close Button Description Closes the page and you are returned to the primary page where you clicked on the Disclaimer link. Page Dynamics: If the text you see in the application differs from the text that is documented in this guide then the Fund Company has opted to customize the text to better suit their business needs. 16 Welcome

17 Chapter 3 Terms & Conditions This chapter highlights the necessary step of the user agreement to perform Compliance testing and/or Form 5500 Reporting. You will not be able to proceed any further in the application for testing or reporting if you do not agree to the terms and conditions presented.

18 Terms & Conditions Overview: An agreement between the Fund Company and the Plan Sponsor that is performing Compliance Testing and/or Form 5500 Reporting. Terms & Conditions is the first step in ecompliance testing process and the first page of the test notebook. How did I get here? Select Save and Continue from the Welcome page, click the Terms & Conditions step in the wizard or select Back from Plan Information step 1 or select Save and Continue from the Welcome page where this is the last page accessed when exiting the application from the prior login session. What happens next? If you want to perform Compliance testing and/or Form 5500 Reporting you must select the check box in acceptance and click Save and Continue. Your selection will be saved and you will be presented the first page of Plan Information, Save & Exit where you selections will be saved and the browser will be closed, Back will take you back to the Welcome page. Fields: Element Name Terms & Conditions Description The rules that you must agree to in order to use the ecompliance service. 18 Terms & Conditions

19 The first section is dynamic based on the options selected on the Welcome page. The I also understand section is static always presenting the following text. OR I am authorized by the Plan Sponsor to manage the Plan s relationship with Fund Company and to convey information and provide instructions and directions. OR I must complete all the remaining steps under the Compliance transaction before Fund Company will consider the plan data and my instructions as received in good order. I understand and acknowledge that the failure to timely complete all applicable compliance tests may result in the imposition of excise taxes by the IRS and may jeopardize the qualified status of the Plan. I understand and acknowledge that the failure to timely file a complete and accurate Form 5500 may result in the imposition of fines and penalties. I understand that, in the even excess contributions and/or excess aggregate contributions are to be distributed, this Compliance transaction must be completed within 2 months following the applicable plan year end so that the amounts may be distributed before the excise tax deadline (2.5 months following plan yearend). I understand that Fund Company will perform compliance tests and prepare a Form 5500 based upon and in reliance of the information in its records and the information I provide via this Compliance transaction. I accept the terms and conditions as described above. checkbox The I represent that, for this Plan: section is also static, always presenting the following text. There were no prohibited transactions by a party-in-interest. There was no instance of fraud or dishonesty in the administration of the Plan and There had not been a termination in the appointment of the Plan s accountant. If any of the statements above are not correct, I understand that I should discuss the matter with my Fund Company Plan Manager. Selecting the I accept checkbox and saving the information will present the checkbox as disabled the next time you log in and access the page. Saving your agreement to the terms and conditions also disables the sub-options within the Compliance Testing and Form 5500 Reporting selection made on the Welcome page. 19 Terms & Conditions

20 Note: If for some reason those selections should not have been saved or need to be changed you ll have to contact your RPAM for assistance Available Actions: Action Save & Exit Description Save updates made to the page and closes the ecompliance application. All primary pages have the Save & Exit feature (but will not be repeated in the documentation for every primary page). The Welcome and exit pages do not have this link in the header nor do the secondary pages (pages that are accessed from a primary page. When there are errors or some required information is missing, a message overlay is presented letting you know the information cannot be saved and asks if you want to continue exiting the application. You can cancel the request or you can continue to exit the application. If you continue to exit the application, any updates made will not be saved. Save and Continue button Back button Selecting the Save and Continue button saves the updates to the Terms and Conditions page, moves you to the next page in the Wizard and saves the your online testing progress so the application will know what page to present after Welcome the next time you log in. This button remains disabled until you select the check box in acceptance of the Terms and Conditions. Selecting the Back button returns you to the previous page; the back button will discard any selections made on the page. Page Dynamics: The first sentence on the page is dynamic based on the options you selected on the Welcome page. o Compliance Testing - Yes, Form 5500 Reporting - Yes. I elect to perform Compliance Testing online and request <client name> to prepare a Form 5500 for this plan for the applicable plan year, subject to the terms and conditions set forth by the Administration Services Agreement. o Compliance Testing - No, Form 5500 Reporting Yes. I request <client name> to prepare a Form 5500 for this plan for the applicable plan year, subject to the terms and conditions set forth by the Administration Services Agreement. o Compliance Testing - Yes, Form 5500 Reporting - No. 20 Terms & Conditions

21 I elect to perform Compliance Testing online for this plan for the applicable plan year, subject to the terms and conditions set forth by the Administration Services Agreement. There are five occurrences on the page where the fund company can customize the text to display their fund company name. If you see the words Fund Company on this page you ll know the fund company has opted not to customize the text to be specific to them. If you have not accepted the Terms & Conditions then you will continue to see this page after Welcome but until you accept the terms/conditions you cannot move any further into the ecompliance steps for testing. However, once you accept the Terms & Conditions and save that selection (by Save and Continue or Save & Exit) it is likely that you will not see the Terms & Conditions page again. From the Welcome page you will be taken to the last page you accessed (the last time you were logged in) when you exited the application. The exception could be one of two situations: o o The RPAM set your online testing progress status back to the Terms & Conditions. The RPAM changed the setting for Terms & Conditions Accepted back to No. Tip: If you land on a page after Welcome that doesn t look right to you, call your RPAM for assistance. 21 Terms & Conditions

22 Chapter 4 Plan Information This chapter will help you understand how the Plan Information is used to gather pertinent plan information and employer data from Plan Sponsors and TPAs for the purpose of performing compliance testing and preparing Form The questionnaire and validation of Plan rules are crucial in the Compliance workflow as it is the Plan s opportunity to provide information about the way the plan was operated during the year, any special scenarios that may impact the way that the plan needs to be treated for testing purposes, and other important information regarding the plan.

23 Plan Information: Review Form 5500 Information (A) Overview: If you have elected to perform Form 5500 Reporting, the Review Form 5500 Information page is your first step in the Plan Information Wizard. The information you provide on this page will be used to prepare your plan s Form How did I get here? You agreed to the Terms and Conditions and selected Save and Continue What happens next? After completing the required information on the first page of Review Form 5500 Information, select Save and Continue to advance to Step 2 of Plan Information. Fields: Element Name EIN Learn More Description Enter the Company s 9 digit EIN (Employer Identification Number). Enter 2 digits in the first box, and 7 digits in the second box. Link that will present additional information around the EIN. Please provide the EIN of the Company, Partnership or Sole Proprietor that sponsors this retirement plan. IRS Plan # Enter the 3 digit numerical plan number for this plan. 23 Plan Information

24 Business Code Learn More Enter the 6 digit IRS business code. If you don t know the business code, the learn more has a link to the IRS website where you can find the information you need. Link that will present additional information around the Business Code. The six-digit number represents principal business activity. Business codes are listed in the IRS Form 5500 instructions. Mailing Address Was there a change in sponsorship of this plan? Learn More Enter the Street Address, City, State, Country and Zip code for the plan. There are three lines for the address but only the first one is required. Answering Yes or No helps determine if there is a potential Control Group situation. Link that will present additional information around the sponsorship of the plan. Indicates whether there was any corporate level action within the organization during the year that would impact the operation of the retirement plan (such as merger, acquisition, or spin-off activity). This helps determine whether a control group exists which may or may not require special aggregation and testing of the retirement plan or plans. Two or more corporations which have common ownership may be treated as a single entity for purposes of certain employee benefit requirements. Is the employer covered by a fidelity bond? Learn More The employer is required to be bonded. If you answer yes, please provide the dollar amount of the fidelity bond coverage. Link that will present additional information around the fidelity bond. Under ERISA Section 412, every fiduciary and any individual who handles plan funds must be bonded. The bond provides protection to funds in the plan(s) against loss by reason of act of fraud or dishonesty. The amount of the bond is fixed at the beginning of each plan year with a face value of at least 10 percent of the trust assets. The bond may not be less than $1,000 and need not be greater than $500,000 even if 10 percent of the trust assets would otherwise require a larger dollar amount. The bond is required for all qualified plans except when: 1) the only participant is the sole owner of a business that maintains the plan; or 2) the only participants are partners of a partnership that maintains a 24 Plan Information

25 plan or any spouse of a sole owner or partner. Note: The fidelity bonding requirement is separate from any fiduciary insurance that might be purchased by the plan, the employer, or the fiduciaries themselves. Plans that are 100 percent invested in insurance products are exempt from this requirement. Does this plan require an Accountant s Opinion Letter? Learn More In general, an Accountant s Opinion Letter is required. Please provide the name and EIN of the Accounting Firm you use. Link that will present additional information around an accountant s opinion letter. An accountant's opinion letter is required. Plans covering fewer than 100 participants as of the first day of the plan year may file Schedule I attachment to Form Generally, such a plan is exempt from the ERISA audit requirement if at least 95% of the plan's assets are held by an insurance company qualified to do business under state law. An accountant's opinion is normally required for large plans filing a Schedule H with their Form Plans required to file a Schedule H attachment to Form 5500 must engage an auditor. If this is the case, provide the auditor's name and mailing address. The accountant performing the audit must examine the plan's financial statements and other records to form an opinion as to whether the employer has presented the plan's financial statements and schedules included with the Form 5500 fairly and in conformity with General Accepted Accounting Principles (GAAP) or Other Comprehensive Basis of Accounting (OCBOA). The American Institute of Certified Public Accountants (AICPA) publishes a guide for performing audits of retirement plans. Under certain circumstances a 'limited scope audit' may be permissible. Available Actions: Action Save and Continue button Back button Description Selecting the Save and Continue button saves the information you have entered and advances you to the next step in the Wizard. Selecting the Back button returns you to the previous page and any updates on the page are not saved. 25 Plan Information

26 Page Dynamics: We need to ask you some questions about your plan in order to prepare your Form Based on your answer, the question may expand and additional information may be required. When that is the case, the Save and Continue button will be disabled until you have entered each of the required fields. Not sure how to answer or why we are asking you for all of this information? Click the Learn More button next to the question for more details. Information that you have provided in previous years will be retained and pre-filled. Based on the information you provide in this section, your Account Manager may contact you to discuss certain plan specific situations. 26 Plan Information

27 Plan Information: Review Form 5500 Information (B) Overview: If you have elected to perform Form 5500 Reporting, the Review Form 5500 Information page is the second step in the Plan Information Wizard. The information you provide on this page will be used to prepare your plan s Form How did I get here? After completing the required information on the first page of Review Form 5500 Information, you selected Save and Continue to advance to Step 2 of Plan Information. What happens next? After completing the required information on the second page of Review Form 5500 Information, select Save and Continue to advance to Step 3 of Plan Information. Fields: Element Name Tax Identity or Filing Status of the Employer Were any participant contributions transmitted to the plan outside of the time period described in Department of Labor regulation 29 CFR ? Learn More Description Select the appropriate value from the dropdown box. If Other is selected, a description is required. Participant contributions withheld from wages are required to be deposited in a timely manner. If the employer transmitted any late contributions, this needs to be reported on the If the answer is Yes, enter the total dollar amount of all late contributions for the plan year. Link that will present additional information around late contributions. 27 Plan Information

28 A Department of Labor (DOL) regulation mandates that participant elective deferrals and loan repayments (collectively "employee contributions") received by the employer or withheld by the employer from participants' wages be deposited to the plan's trust as of the earliest date on which such employee contributions can be reasonably segregated from the general assets of the employer. This is commonly referred to as "as soon as administratively feasible." The deposit date of the employee contributions cannot be later than 15 business days after the end of the month in which the employee contributions were received or withheld by the employer (unless the employer received a special exemption). Failure to deposit timely under this regulation means that employee contributions in the possession of the employer and not yet deposited to the plan's trust are deemed to be "plan assets" subject to ERISA's fiduciary standards and the related prohibited transaction provisions of the Internal Revenue Code ("IRC"). In 2010, the DOL issued final regulations for plans with less than 100 participants (active, eligible, suspended, and disabled status only), establishing a safe harbor period for depositing employee contributions to the plan. Employee contributions are deemed to be timely if the amounts are deposited with the plan no later than the seventh business day following the date the contributions (including loan repayments) are received by the employer or following the date the amounts would otherwise have been paid to the employees as compensation. Eligibility for this safe harbor is based on a 100 participant measurement as of the first day of each plan year and is not related to the 80/120 rule that is used to determine Form 5500 status. Employers who decide not to adopt the safe harbor period of seven days and choose to operate using the "as soon as administratively feasible" methodology, increase the chance of audit or scrutiny by the IRS and/or the DOL as to whether they are depositing contributions timely. Under section 405(a) (3), a fiduciary is liable for a breach of another fiduciary if the fiduciary has knowledge of the breach of the other fiduciary, unless the fiduciary takes reasonable efforts under the circumstances to remedy the breach. Efforts to remedy may, depending on the circumstances, include advising the named fiduciary or the DOL of the breach. The DOL is assessing significant penalties to plans that are not funding payrolls in a timely manner. Did the employer provide any direct or indirect compensation, including gifts or entertainment, to a Service Provider totaling $5,000 or more? Were any plan assets maintained outside of the plan s contract with [Your Fund Company] during the [plan year]? Form 5500 Contact Information Service Provider Information that has already been provided will be presented. If you need to make changes to this information or if the information has never been entered, click the Make Changes link to Review and Make Changes to the Service Provider Information. This information is required for Schedule C of the Form Select Yes or No to indicate if additional plan assets exist that would need to be considered for your Plan s Form 5500 filing. This section allows you to identify the individual(s) responsible for signing and/or filing your Information that has already been 28 Plan Information

29 provided will be presented. If you need to make changes to this information or if the information has never been entered, click the Make Changes link to Review and Make Changes to Form 5500 Contact Information. This information is required when the information is presented. If you do not see this section on the page then your client does not have an agreement with a vendor that has single sign-on capabilities with the EFAST2 system so this information has been suppressed from the page. Learn More Link that will present additional information around form 5500 contact information. Your Form 5500 must be electronically filed each year to satisfy annual reporting requirements under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. In order to assist you with your electronic signing credentials, we need to gather the contact information for the signers. These credentials will permit you to electronically sign and electronically file your return(s). Available Actions: Action Provider Information Make Changes Button Description The information gathered in the Provider Information section is used to complete Schedule C of Form 5500 (Service Provider Information). This schedule is required for any service provider who rendered services to the plan or Direct Filing Entity during the Plan Year received $5,000 or more in compensation. Select the Make Changes link to enter or update the Service Provider Information. For each Service Provider, you must enter the Name, Relationship to plan, EIN, Mailing Address, Amount, service code, whether the compensation was direct or indirect, and whether a formula was used in place of an exact amount. You may enter up to 5 Service Providers by clicking on Add Another Service Provider. If you have more than 5 Service Providers to report, you may click The plan has more Service Providers to notify your account manager who will contact you to for instructions on helping you provide the additional information. You may remove Service Providers by clicking Remove this provider. Form 5500 Contact Information Make Changes Button The information gathered in the Form 5500 Contact section is used to identify the individuals responsible for reviewing, signing, and e-filing the Plan s Name and information is required for the Plan Administrator and the Employer/Plan Sponsor. You may identify up to 3 additional contacts that should be granted access to the Plan s You must select the level of access that 29 Plan Information

30 Save and Continue button Back button should be granted for each additional contact. You may remove contacts by selecting Remove this contact Selecting the Save and Continue button saves the information you have entered and advances you to the next step in the Wizard. Selecting the Back button returns you to the previous page and any updates on the page are not saved. 30 Plan Information

31 31 Plan Information

32 Page Dynamics: We need to ask you some questions about your plan in order to prepare your Form Based on your answer, the question may expand and additional information may be required. When that is the case, the Save and Continue button will be disabled until you have entered each of the required fields. Not sure how to answer or why we are asking you for all of this information? Click the Learn More button next to the question for more details. Information that you have provided in previous years will be retained and pre-filled. 32 Plan Information

33 Plan Information: Review and Make Changes to Provider Information Overview: A secondary page where you can enter up to five Providers and the associated compensation or formula information. How did I get here? Answering Yes to the question Did the employer provide any direct or indirect compensation, including gifts or entertainment, to a Service Provider totaling $5,000 or more? then selecting the Make Changes link from step 2 of Plan Information (2 nd page of Review Form 5500 Information) or select Save and Continue from the Welcome page where this is the last page accessed when exiting the application from the prior login session. What happens next? Selecting the Done button will save your entries and return you to the Plan Information page where you came from. Selecting the Cancel button just returns you to the Plan Information page and none of your entries are saved. Fields: Element Name Service Provider Name: Service Provider Relationship to Plan: Description Enter the name of the service provider that received any direct or indirect compensation. The name is a required field and allows up to 35 alphanumeric characters. A free form entry field to identify the relationship of the service provider to the Plan. This is a required field and allows up to 24 alphanumeric characters. 33 Plan Information

34 Service Provider EIN: Remove this provider Mailing Address: City: State: Country: Postal Code (ZIP): Direct Compensation Service Code(s): A set format entry field where you identify the service providers EIN (Employer Identification Number). This field is required and is setup to enter in the appropriate format of XX-XXXXXXX. An action link that lets you delete the associated service provider information section. You can remove any or all service provider sections and save those changes. There is plenty of room to enter the mailing address fields. Three lines of mailing address entry fields are presented, only the first line is required. Each line allows up to 35 alphanumeric characters. A free form entry field to enter the city of address for the service provider. The city is a required field and allows up to 21 alphanumeric characters. A selection list of the available states, you can enter name in the selection list entry box and a list of those states closest matching the values entered is presented narrowing the states to choose from. The state is required when the Country is Usa otherwise this field is not available for selection. The state selection is defaulted to Usa but is available for you to change as needed. When the country is anything other than Usa the State field is disabled. This is where you enter the zip code; this field is required regardless of country code selection and allows for 10 alphanumeric characters. Although there is no edits for this field the typical format for the zip code is XXXXX-XXXX. Name of the associated section. The service code(s) associated with the direct compensation is entered here. If you have more than one direct compensation service code to enter just include a comma between the multiple two digit service codes but be sure you don t put any spaces between the service codes and commas or you ll get a format error. You can enter up to 15 service codes. This field is conditionally required and at least one of the service code types must have an entry. Learn More Link that will present additional information around Service Codes. The IRS requires that Service/Compensation codes are included on your annual Form 5500, Schedule C filing related to the fees and compensation received by service providers for your retirement plan. Please visit and click on the "Forms and Instructions" link to view the available codes and descriptions. 34 Plan Information

35 Amount Paid: Indirect Compensation: Service Code(s): This is the total amount of direct compensation received by the Service Provider. If a formula was provided instead of a dollar amount you should leave this value as $0.00. Name of the associated section. The service code(s) associated with the indirect compensation is entered here. If you have more than one indirect compensation service code to enter just include a comma between the multiple two digit service codes but be sure you don t put any spaces between the service codes and commas or you ll get a format error. You can enter up to 15 service codes. This field is conditionally required and at least one of the service code types must have an entry. Learn More Link that will present additional information around Service Codes. The IRS requires that Service/Compensation codes are included on your annual Form 5500, Schedule C filing related to the fees and compensation received by service providers for your retirement plan. Please visit and click on the "Forms and Instructions" link to view the available codes and descriptions. Amount Paid: Did this Service Provider give you a formula instead of an amount or estimated amount? This is the total amount of indirect compensation received by the Service Provider. If a formula was provided instead of a dollar amount you should leave this value as $0.00. If the Service Provider received compensation through a formula instead of a dollar amount you need to select Yes for this question otherwise select No. When the response is Yes a free form text entry field is presented. This is where you will enter the formula for compensation. When the entry field is presented the information is required. You have up to 255 characters to document the formula information. This link lets you add another section of Service Provider information. You can have up to five service providers; once you have five presented the link is hidden and replaced with the checkbox described below. Checkbox that indicates there are more than five service providers to report. A notification will be sent to your RPAM who will contact you to collect the additional service provider information. 35 Plan Information

36 Available Actions: Action Done Cancel Description Selecting the Save and Continue button saves the updates to the Terms and Conditions page, moves you to the next page in the Wizard and saves your online testing progress so the application will know what page to present after Welcome the next time you log in. Selecting the Back button returns you to the previous page and any updates on the page are not saved. Page Dynamics: None. 36 Plan Information

37 Plan Information: Review and Make Changes to Form 5500 Contact Information Overview: A secondary page where you can enter the specific contact information for the Department of Labor EFAST2 filing system. How did I get here? Selecting the Make Changes link from step 2 of Plan Information (2 nd page of Review Form 5500 Information) for the Form 5500 and Form 8955-SSA information presented at the bottom of the page. If your client does not have an agreement with a vendor that has single sign-on capabilities with the EFAST2 system then you will not see the information on the Plan Information page. What happens next? Selecting the Done button will save your entries and return you to the Plan Information page where you came from. Selecting the Cancel button just returns you to the Plan Information page and none of your entries are saved. Fields: Element Name Informational Message Description Note: The person responsible for signing as Plan Administrator and Employer/Plan Sponsor may or may not be the same person. Plan Administrator Name: Enter the name of the Plan Administrator. You can enter up to 35 alphanumeric characters. Plan Administrator Enter the Plan Administrators information. You have up to Plan Information

38 characters allowed and it must be entered in fixed format. As an example: Employer/Plan Sponsor Name: Employer/Plan Sponsor Enter the name of the Employer or Plan Sponsor. You can enter up to 35 alphanumeric characters. Enter the Employer or Plan Sponsor information. You have up to 256 characters allowed and it must be entered in fixed format. As an example: Instructional Text Additional contacts listed below will have electronic access to the Plan s Form 5500 and Form 8955-SSA (if applicable). Please select the appropriate level of access for each additional contact provided. Additional Contact Name: Enter the name of the Additional Contact. You can enter up to 35 alphanumeric characters. You can enter up to three additional contacts for the plan. Remove this contact An action link that lets you delete the associated Additional Contact information. You can remove any or all additional contact sections and save those changes. Additional Contact Enter the Additional Contact information. You have up to 256 characters allowed and it must be entered in fixed format. As an example: user@example.com Level of Access Add Additional Contacts You can specify the level of access for the associated additional contact. Levels of access are: View & Edit View, Edit & E-file This link lets you add another section of Additional Contact information. You can have up to three Additional Contacts; once you have three presented the link is hidden. You are not required to add Additional Contact information. If you don t have any additional contact information to add, you don t need to select this link. If you do and the additional contact information is presented, then entry in the fields presented is required. 38 Plan Information

39 Available Actions: Action Done Cancel Description Selecting the Save and Continue button saves the updates to the Terms and Conditions page, moves you to the next page in the Wizard and saves the your online testing progress so the application will know what page to present after Welcome the next time you log in. Selecting the Back button returns you to the previous page and any updates on the page are not saved. Page Dynamics: None. 39 Plan Information

40 Plan Information: Review Compliance Information (A) Overview: If you elected to perform Compliance Testing, the Review Compliance Testing Information page is the third step in the Plan Information Wizard. The information you provide on this page will be used to perform your Plan s Compliance Testing. How did I get here? After completing the required information on the second page of Review Form 5500 Information, you selected Save and Continue to advance to Step 3 of Plan Information. What happens next? After completing the required information on the first page of Review Compliance Testing Information, select Save and Continue to advance to Step 4 of Plan Information. Fields: Element Name Were there any NHCE s during [prior plan Description This question is presented only when the ADP/ACP test rules for the test year indicate that the plan uses Prior Year Method Only and the 40 Plan Information

41 year]? Learn More NHCE percentages are not available on the recordkeeping system. Selecting Yes will expand an additional question. Link that will present additional information around NHCEs and ADP/ACP testing. A plan that uses the prior year testing method for annual deferral percentage (ADP)/actual contribution percentage (ACP) tests. Enter the non-highly compensated employees (NHCEs) ADP and/or ACP test percentages for the plan year indicated. Note: Entering 0 indicates no eligible NHCEs contributed to the plan. All highly compensated employee (HCE) contributions will be considered excesses. Select no if the plan had no NHCEs who were eligible. Contact the Plan Manager to discuss questions with the additional data collection. What is the NHCE ADP % during [prior plan year]? If the plan uses the Prior Year Method for testing and last year s rates are not stored in the recordkeeping system, we need to ask you for your Plan s prior year rate results. Enter the ADP (Average Deferral Percentage) of the NHCE (Non Highly Compensated Employee) group from the plan s prior year testing. Note: This information should be available on your testing results from last year. Learn More Link that will present additional information around average deferral percentage, HCEs and ADP/ACP testing. Compares the average deferral percentage of the highly compensated employee (HCE) group with the corresponding average percentage for the non highly compensated employee (NHCE) group. The ADP test includes employee pre tax deferrals, qualified non elective contribution (QNEC) contributions, and if the plan permits, designated Roth contributions. This comparison determines whether the difference between the two groups is within the allowable limit under IRS regulations. The deferral percentage for HCEs is always determined using the current plan year deferrals. For NHCEs, the deferral percentage is determined using either the current plan year deferrals or the proper 41 Plan Information

42 plan year deferrals. The method used for NHCEs ("current year method" or "prior year method") is determined based on your election in the plan's document. For plans using the current year method that fail the ADP test, corrective action may involve the refund of employee deferrals to HCEs or making a qualified matching contribution (QMAC) or QNEC as described in the plan's document. For plans using the prior year method that fail the ADP test, corrective action may involve the refund of employee deferrals to HCEs. Note: QNEC is not a valid correction option when using the prior year method. A highly compensated employee (HCE) is anyone who: Earned more than the HCE-indexed amount in a 12 month period preceeding the plan year. An employee who owns or is considered as owning more than 5 percent of the sponsoring business entity (or another entity in a controlled or affiliated service group) anytime during the current or prior plan year. If you have an off-calendar year plan year, contact the plan manager for employees who are more than a 5 percent owner. Linear family member or spouse of a greater than 5 percent owner. A linear family member is a parent, child, or grandparent of an owner. Note: Plans that use the top paid group method for HCE determination (per the plan's document) will follow a different procedure. Contact your plan manager for assistance. What is the NHCE ACP % during [prior plan year]? If the plan uses the Prior Year Method for testing and last year s rates are not stored in the recordkeeping system, we need to ask you for your Plan s prior year rate results. Enter the ACP (Average Contribution Percentage) of the NHCE (Non Highly Compensated Employee) group from the plan s prior year testing. Note: This information should be available on your testing results from last year. 42 Plan Information

43 Learn More Link that will present additional information around average contribution percentage, NHCEs and ADP/ACP testing. Compares the actual contribution percentage of the highly compensated employee (HCE) group with the corresponding percentage for the non highly compensated employee (NHCE) group. The ACP test includes employee after-tax and/or employer matching contributions, qualified matching contribution (QMAC), and reallocated match forfeitures, if any. This comparison determines whether the difference in the average percentage between the two groups is within the allowable limit under IRS regulations. The contribution percentage for the HCEs is always determined using the current plan year contributions. For NHCEs the contribution percentage is determined using either the current plan year contributions or the prior plan year contributions. The method used for NHCEs ("current year method" or "prior year method") is determined based on your election in the plan's documents. For plans using the current year method that fail the ACP test, corrective action may involve the refund or forfeiture of employer matching contributions and/or the refund of employee after tax contributions to HCEs. Alternatively a plan may make a QMAC or qualified non-elective contribution (QNEC) as described in the plan's document. For plans using the prior year method that fail the ACP test, corrective action may involve the refund or forfeiture of employer matching contributions and/or the refund of employee after-tax contributions to HCEs. Note: QNEC is not a valid correction option when using the prior year method. A highly compensation employee (HCE) is anyone who: Earned more than the HCE-indexed amount in a 12 month period preceeding the plan year. An employee who owns or is considered as owning more than 5 percent of the sponsoring business entity (or another entity in a controlled or affiliated service group) anytime during the current or prior plan year. If you have an off-calendar year plan year, contact the plan manager for employees who are more 43 Plan Information

44 than a 5 percent owner. Linear family member or spouse of a greater than 5 percent owner. A linear family member is a parent, child, or grandparent of an owner. Note: Plans that use the top paid group method for HCE determination (per the plan's documents) will follow a different procedure. Contact your plan manager for assistance. Does the employer maintain another qualified plan other than this plan? Select Yes or No to indicate if the employer maintains another qualified plan. This information is used to determine what type of testing is required for your plan. Is the employer a member of a controlled group of corporations or businesses under common control? Learn More Select Yes or No to indicate if the employer is part of a group of corporations with common ownership. Selecting Yes will expand an additional question. Link that will present additional information around control groups. Two or more corporations which have common ownership may be treated as a single entity for purposes of certain employee benefit requirements. If this classification may apply, consult a tax or legal advisor to determine the actual legal status of the organization. Do the other members of the control group participate in this plan Learn More Select Yes or No to indicate if the control group participates in this plan. If other members of the control group do not participate, select No. This answer will expand to gather more information. Link that will present additional information around plan participation and control groups. Two or more corporations which have common ownership may be treated as a single entity for purposes of certain employee benefit requirements. If this classification may apply, consult a tax or legal advisor to determine the actual legal status of the organization. Total number of non-participating HCEs and Enter the number of HCEs (Highly Compensated Employees) and NHCEs 44 Plan Information

45 NHCEs (Non Highly Compensated Employees) for all of the non-participating employers that are part of the control group. These counts will be used to determine Minimum Coverage. Is the employer a member of an affiliated service group? Learn More Select Yes or No to indicate if the employer is a member of an affiliated service group. If you are not sure, consult a tax or legal advisor to determine the actual legal status of the organization. This information is used to determine what type of testing is required for your plan. Link that will present additional information around affiliated service groups. Two or more organizations that have a common service relationship and, in some cases, common ownership. If you feel this classification may apply, consult a tax or legal advisor to determine the actual legal status of the organization. Is this plan pursuant to a collective bargaining agreement? Learn More Select Yes or No to indicate if the plan includes employees who are covered by a Union. This information is used to determine what type of testing is required for your plan. Link that will present additional information around collective bargaining agreements. A plan including employees who are covered by a collectively bargained (union) agreement in which retirement benefits were the subject of good faith bargaining. Your plan is designated as a Safe Harbor plan. Was a timely Safe Harbor notice provided to eligible employees? Learn More Select Yes or No to indicate if a timely Safe Harbor notice was mailed to the employees. Failure to send the notice in a timely manner indicates the plan is not operating in accordance with the terms of the plan. Link that will present additional information around safe harbor plans. A plan that design requires: 1) a safe harbor employer contribution to be funded; 2) safe harbor contributions must be 100 percent vested (not applicable to QACA plans); 3) the plan's documents must specify safe harbor provisions; and 4) the plan participants must receive 45 Plan Information

46 notification of the safe harbor plan provisions at least 30 days prior to the first day of the plan year. A safe harbor plan is a way of avoiding certain annual testing requirements as long as employer contribution has not been contributed. A 401(k) plan that makes either a safe harbor matching or non-elective contribution is relieved of the need to perform annual deferral percentage (ADP)/ actual contribution percentage (ACP), or top heavy testing. The plan's documents must clearly reflect the election of the safe harbor provision, including the applicable vesting schedule and withdrawal restrictions. Available Actions: Action Save and Continue button Description Selecting the Save and Continue button saves the information you have entered and advances you to the next step in the Wizard. Back button Selecting the Back button returns you to the previous page and any updates on the page are not saved. Page Dynamics: We need to ask you some questions about your plan in order to perform your Compliance Testing. Based on your answer, the question may expand and additional information may be required. When that is the case, the Save and Continue button will be disabled until you have entered each of the required fields. Not sure how to answer or why we are asking you for all of this information? Click the Learn More button next to the question for more details. Information that you have provided in previous years will be retained and pre-filled. 46 Plan Information

47 Plan Information: Review Compliance Information (B) Overview: If you elected to perform Compliance Testing, the Review Compliance Testing Information (B) page is the fourth step in the Plan Information Wizard. The information you provide on this page will be used to perform your Plan s Compliance Testing. How did I get here? After completing the required information on the Review Compliance Testing Information (A) page, you selected Save and Continue to advance to Step 4 of Plan Information. What happens next? After completing the required information on the second page of Review Compliance Testing Information, select Save and Continue to advance to Step 5 of Plan Information. Fields: Element Name During [the plan year], what is the percentage of company ownership outside of the plan s employee population? Learn More Description Enter the total percentage of ownership that is outside the employees of the plan. We ll ask you about employee ownership in the Census phase of the application. Then we will combine that information with the percentage you enter here. Ownership for employees and nonemployees should total up to 100%. If all ownership of the company lies with employees, enter 0% Link that will present additional information around outside company ownership. 47 Plan Information

48 The total percentage of plan ownership held by individuals or entities that are not employed by the plan. We keep track of this number to assist in capturing the total plan ownership, which is critical for determining HCEs and Key employees. In general, the total of all employee and non-employee ownership should equal 100% of the plan's ownership. During [the plan year], how many employees worked for the employer, regardless of plan participation? Learn More We need to know the total number of employees that worked during the plan year. It doesn t matter if they contributed to the plan or not. This information will be used to perform Compliance testing. Link that will present additional information around employees that worked for the employer regardless if they participated in the plan. The total number of employees who worked for the employer. Of those employees, how many fall into one of the following categories? Employees in some categories may be excluded from certain portions of testing. We ll use this count to determine those exclusions. Tip: When providing the employee counts, ensure that you only count each employee once. Available Actions: Save and Continue button Selecting the Save and Continue button saves the information you have entered and advances you to the next step in the Wizard. Back button Selecting the Back button returns you to the previous page and any updates on the page are not saved. Page Dynamics: We need to ask you some questions about your plan in order to perform your Compliance Testing. Based on your answer, the question may expand and additional information may be required. When that is the case, the Save and Continue button will be disabled until you have entered each of the required fields. 48 Plan Information

49 Not sure how to answer or why we are asking you for all of this information? Click the Learn More button next to the question for more details. Information that you have provided in previous years will be retained and pre-filled. 49 Plan Information

50 Plan Information: Review Additional Plan Information (A) Overview: The Review Additional Plan Information (A) page is the fifth step in the Plan Information Wizard. The information you provide on this page will be used to perform your Plan s Compliance Testing. How did I get here? After completing the required information on the Review Compliance Testing Information (B) page, you selected Save and Continue to advance to Step 5 of Plan Information. What happens next? After completing the required information on the second page of Review Compliance Testing Information, select Save and Continue to advance to Step 6 of Plan Information. Fields: Element Name Did the employer close or sell any of their companies, subsidiaries, or locations during the plan year ending in [plan year end]? Company, Subsidiary, or Location Name Sell or Close Date Description Select Yes or No to indicate if all or part of the company was sold. There are certain requirements that may need to be addressed if part (or all) of a company or location is sold. Selecting Yes will expand the question to gather additional information. Two occurrences of the additional information needed are presented but only the first occurrence of Company, Subsidiary or Location Name and Sell or Close Date is required. Enter the name of the part of the company that was closed or sold. Use the Calendar to select a date (must be within the plan year) 50 Plan Information

51 Did any employees from the above companies, subsidiaries, or locations cease participation in this plan during the year ending [plan year end]? Was there a plan merger, spin-off, transfer or termination during the plan year ending [plan year end] and assets were transferred from this plan to another plan? Learn More Select Yes or No. Select Yes or No. Selecting Yes will expand the question to gather additional information. Tip: As the facts and circumstances of any merger or acquisition are complex and unique, seeking legal counsel is usually a prudent decision during the merger and acquisition process. Link that will present additional information around plan acquisitions. There are two types of acquisitions, with each type affecting retirement plans differently. The first type is a stock purchase. If company A purchases the stock of company B, company A (the buyer) automatically assumes responsibility of any plan maintained by company B. Also, these two companies are now part of a controlled group. The second type is an asset acquisition. In this example, company A purchases the corporate assets of company B. In this situation, if company A agrees to accept the transfer of plan assets into its own plan, then company A is required to credit service to the acquired employees based on their service with company B. If company A decides not to accept the transfer into its plan, then no prior service is credited to the acquired employees. Also, if company A purchases all the corporate assets of company B, whether or not prior service is recognized is based on acceptance of the plan assets from company B's plan. Otherwise, the plan for company B is terminated. In both situations, company A can decide to merge the plan assets of the acquired employees into its own plan. If so, a review of benefits and features between the two plans must take place to avoid any inadvertent loss of protected benefits. Plan Name to which the assets were transferred EIN of Plan to which the assets were As the facts and circumstances of any merger or acquisition are complex and unique, seeking legal counsel is usually a prudent decision during the merger and acquisition process. Contact the plan manager with any questions. Enter the name of the Plan that received the assets. The recipient plan of a plan to plan transfer must be disclosed in the Form Enter the EIN (Employer Identification Number) of the Plan that 51 Plan Information

52 transferred Plan Number to which the assets were transferred received the assets. Enter 2 digits in the first box and 7 digits in the second box. Enter the IRS plan number. Available Actions: Save and Continue button Back button Selecting the Save and Continue button saves the information you have entered and advances you to the next step in the Wizard. Selecting the Back button returns you to the previous page and any updates on the page are not saved. Page Dynamics: We need to ask you some questions about your plan in order to perform your Compliance Testing. Based on your answer, the question may expand and additional information may be required. When that is the case, the Save and Continue button will be disabled until you have entered each of the required fields. Not sure how to answer or why we are asking you for all of this information? Click the Learn More button next to the question for more details. Information that you have provided in previous years will be retained and pre-filled. 52 Plan Information

53 Plan Information: Review Additional Plan Information (B) Overview: The Review Additional Plan Information (B) page is the sixth step in the Plan Information Wizard. The information you provide on this page will be used to perform your Plan s Compliance Testing. How did I get here? After completing the required information on the Review Additional Plan Information (B) page, you selected Save and Continue to advance to Step 6 of Plan Information. What happens next? After completing the required information on the second page of Review Additional Plan Information, select Save and Continue to advance to the Census section of the Wizard. Fields: Element Name Did the employer or the owners of the employer acquire any new companies during [the plan year]? Company Name Acquisition Date Are any of the acquired companies part of a Description Select Yes or No. There are certain requirements that need to be addressed when a plan sponsor acquires a new company or terminated their qualified plan. Selecting Yes will expand the question to gather the acquired company information and ask you a few more questions. The Company Name and Acquisition Date presents two occurrences but only the first occurrence is required. Enter the name of the company that was acquired. Use the calendar to choose the acquisition date (must be within the plan year) Select Yes or No. 53 Plan Information

54 controlled group of corporations? Will any of the employees of the acquired companies be participating under this plan? Was this plan terminated during [the plan year]? Was the plan Top Heavy on the determination date of [prior plan year end]? Learn More Select Yes or No. Select Yes or No. Selecting Yes will expand the question to gather additional information. If the answer is Yes, enter the termination date. Termination Date must be within the plan year. This question will not present if we have your prior year testing information and have already determined the plan s Top Heavy status for this plan year. Use the Learn More link to get more information on determining if your plan is Top Heavy. Link that will present additional information around top heavy plans. Designates whether the total of the account balances of the Key employees (excluding rollover and transfer contributions from an unrelated employer) exceeds 60 percent of the total account balances of all participants as of the last day of the plan year prior to the plan year being tested (determination date). The balances are determined by adding back in-service withdrawals that occurred in the five-year period ending on the determination date and any distributions due to a separation of service, death, or disability during the one-year period ending on the determination date. If the total account balance of the Key employees exceeds 60 percent, the plan is top heavy for the following plan year. Additional funding and accelerated vesting may be required. A top heavy plan must provide a minimum employer contribution on behalf of eligible non-key employees for each plan year in which the plan is top heavy. For a plan's first plan year, if the plan is determined to be top heavy, the minimum employer contribution and accelerated vesting schedule is required for the initial plan year. Such a plan will also be considered top heavy for its second plan year and must satisfy the minimum employer contribution requirement and accelerated vesting schedule for that year as well. Employer contributions are deductible under the Internal Revenue Code (IRC) Section 404 if they otherwise meet the reasonable compensation principles under IRC Section 162. Section 162 allows a deduction for compensation paid if it is ordinary, necessary and 54 Plan Information

55 reasonable. In order to qualify for a deduction, the employer's contribution must be made to a qualified plan before the end of the employer's tax year for which the deduction is to be applied. The contribution must be made no later than the due date (including extensions) of the employer's tax return for the tax year for which the deduction is taken. A Key employee is anyone who: Owned more than 5 percent of any company sponsoring the plan at any time during the plan year and/or the 12 months preceding the plan year, regardless of compensation. This includes spouse and linear family members. Owned more than 1 percent of any company sponsoring the plan and earned more than $150,000. An officer of the company with gross annual compensation greater than the key-indexed amount. If there are fewer than 500 employees, the maximum number of officers required to count as key employees is the greater of three or 10 percent of all employees. If there are more than 500 employees, no more than 50 officers are considered key employees. Available Actions: Save and Continue button Back button Selecting the Save and Continue button saves the information you have entered and advances you to the next step in the Wizard. Selecting the Back button returns you to the previous page and any updates on the page are not saved. Page Dynamics: 55 Plan Information

56 We need to ask you some questions about your plan in order to perform your Compliance Testing. Based on your answer, the question may expand and additional information may be required. When that is the case, the Save and Continue button will be disabled until you have entered each of the required fields. Not sure how to answer or why we are asking you for all of this information? Click the Learn More button next to the question for more details. Information that you have provided in previous years will be retained and pre-filled. 56 Plan Information

57 Plan Information: Review Plan Features for Accuracy Overview: The last step for Plan Information is a review of the Plan Features information maintained by the Retirement Plan Account Manager (RPAM). You will need to review each section of information and respond to the question Is this information correct? If any information is incorrect, select the No response and enter your comments in the free form entry box that is presented. How did I get here? Selecting Save and Continue from the second page of Plan Information - Review Additional Plan Information, select Back from the first step of Update Census or select Save and Continue from the Welcome page where this is the last page you accessed when exiting the application from the prior login session. What happens next? When all sections have the response of Yes, selecting Save and Continue takes you to the first step of Update Census. When any section has a response of No, selecting Save and Continue presents an Exit page where you will be forced to exit the application. Back takes you to the previous page and none of your selections or entries are saved. 57 Plan Information

58 Fields: Element Name Review Plan Features for Accuracy General Plan Information Plan Year: Safe Harbor: Learn More Description Just a page name. Name of the associated section. Presents the plan year date range that is currently being Compliance tested. Identifies the plan as Safe Harbor or not. Link that will present additional information around safe harbor plan information. A plan that design requires: 1) a safe harbor employer contribution to be funded; 2) safe harbor contributions must be 100 percent vested (not applicable to QACA plans); 3) the plan's documents must specify safe harbor provisions; and 4) the plan participants must receive notification of the safe harbor plan provisions at least 30 days prior to the first day of the plan year. Limit Year End Date: Learn More A safe harbor plan is a way of avoiding certain annual testing requirements as long as employer contribution has not been contributed. A 401(k) plan that makes either a safe harbor matching or non-elective contribution is relieved of the need to perform annual deferral percentage (ADP)/ actual contribution percentage (ACP), or top heavy testing. The plan's documents must clearly reflect the election of the safe harbor provision, including the applicable vesting schedule and withdrawal restrictions. The defined year for 415 limitation testing. Link that will present additional information around limit year end dates. The Limitation Year is defined in the plan's documents and varies by plan. Top Heavy Status: Learn More Identifies the plan is Top Heavy for the current test year. Link that will present additional information around top heavy plans. Designates whether the total of the account balances of the Key employees (excluding rollover and transfer contributions from an unrelated employer) exceeds 60 percent of the total account balances of all participants as of the last day of the plan year prior to the plan 58 Plan Information

59 year being tested (determination date). The balances are determined by adding back in-service withdrawals that occurred in the five-year period ending on the determination date and any distributions due to a separation of service, death, or disability during the one-year period ending on the determination date. If the total account balance of the Key employees exceeds 60 percent, the plan is top heavy for the following plan year. Additional funding and accelerated vesting may be required. A top heavy plan must provide a minimum employer contribution on behalf of eligible non-key employees for each plan year in which the plan is top heavy. For a plan's first plan year, if the plan is determined to be top heavy, the minimum employer contribution and accelerated vesting schedule is required for the initial plan year. Such a plan will also be considered top heavy for its second plan year and must satisfy the minimum employer contribution requirement and accelerated vesting schedule for that year as well. Employer contributions are deductible under the Internal Revenue Code (IRC) Section 404 if they otherwise meet the reasonable compensation principles under IRC Section 162. Section 162 allows a deduction for compensation paid if it is ordinary, necessary and reasonable. In order to qualify for a deduction, the employer's contribution must be made to a qualified plan before the end of the employer's tax year for which the deduction is to be applied. The contribution must be made no later than the due date (including extensions) of the employer's tax return for the tax year for which the deduction is taken. A Key employee is anyone who: Owned more than 5 percent of any company sponsoring the plan at any time during the plan year and/or the 12 months preceding the plan year, regardless of compensation. This includes spouse and linear family members. Owned more than 1 percent of any company sponsoring the plan and earned more than $150,000. An officer of the company with gross annual compensation greater than the key-indexed amount. If there are fewer than 500 employees, the maximum number of officers required to count as key employees is the greater of three or 10 percent of all employees. If there are more than 500 employees, no more than 50 officers are considered key employees. Is this information correct? This is where you will approve the information presented in the section. If the information looks good to you then answer Yes. If something doesn t look right to you then answer No ; a free form 59 Plan Information

60 entry text box is presented and you are required to enter comments of why you are saying the information is not correct. This question requires a response; the Save and Continue button will remain disabled until each of the questions has a response. If any are No, the button will also remain disabled until you enter comments in each of the associated text boxes. Employees & Ownership: Plan Year Total Employees: Plan year Total Excluded Employees: Previous Plan Year Total Employees: Previous Plan Year Total Excluded Employees: Total Non-Employee Ownership: Member of a Controlled Group: Eligible HCEs and NHCEs of Non-Participating Employers in the Controlled Group: Number of HCEs: Number of NHCEs: Is this information correct? Eligibility Elective Deferral Plan Entry Frequency: Last Available Plan Entry Date: Name of the associated section. Total number of employees in the plan year. Total number of employees that are excluded in the plan year. Total number of employees in the previous test year. Total number of employees that were excluded in the previous test year. Total percentage of company ownership outside of the plan s employee population. Tells you whether the plan is part of a controlled group of businesses or corporations. Label for the following two fields. Total number of employees identified as HCEs in the controlled group. Total number of employees identified as NHCEs in the controlled group. This is where you will approve the information presented in the section. If the information looks good to you then answer Yes. If something doesn t look right to you then answer No ; a free form entry text box is presented and you are required to enter comments of why you are saying the information is not correct. This question requires a response; the Save and Continue button will remain disabled until each of the questions has a response. If any are No, the button will also remain disabled until you enter comments in each of the associated text boxes. Name of the associated section. This section details the established settings for the Elective Deferral money type. The first money type occurrence in the Eligibility section is expanded by default on page load. To collapse the Elective Deferral information you simply click on the icon (shown on the left). Presents the plan entry frequency for the associated money type. Presents the last enrollment entry date for the associated money type. 60 Plan Information

61 Amnesty Date: Amnesty Waiver Based on: All employees are eligible to participate except for the following: Additional Exclusions Presents the amnesty date for the associated money type. Employees are automatically eligible for the associated money type when they are an active employee on or before the defined Amnesty Date. This field is not presented when the plan does not provide an Amnesty Date. Presents the eligibility criteria waived when an Amnesty Date is entered. The available options are Age and Service; meaning, if the participant is an active employee on or before the Amnesty Date determination for eligibility is waived regardless of their age and/or time of service depending on the selection(s) defined by the plan. Amnesty Waiver can be for one or both options. Employees that meet any of the statutory exclusions below are excluded from the eligibility calculation. Nonresident Alien Union HCEs Contractor/Leased Salaried Hourly Under the age of XX Years and X Months Worked less than XXX Days Worked less than XXXX Hours in X Month Worked less than XX Months Any employee that meets any of the non-statutory exclusions below are also excluded from the eligibility calculation This exclusion is offered for all money types. Job Classification Excluded locations In addition, the following money types presents whether the money type is designated as Safe Harbor. Safe Harbor (Yes/No) Each section presents at least the same information presented for Elective Deferral. For some money types there are additional information and/or additional non-statutory exclusions that could be presented. The following non-statutory exclusion is presented for all money types except Elective Deferral and Voluntary After-Tax. Active employees with less than XXXX hours OR XX months Last, the following three money types have an additional non-statutory exclusion and associated reason(s) that could be presented. ( Employer Match, Safe Harbor Non-Elective (QNEC) and Safe Harbor Match 61 Plan Information

62 (QMAC)) Employees not working on the Last Day of the plan year with between hours due to the following reasons: Employees not working on the Last Day of the plan year with between hours due to the following reasons: Employees not working on the Last Day of the plan year regardless of hours due to the following reasons: Employees not working on the Last Day of the plan year less than XXXX hours due to the following reasons: Terminated Deceased Disabled Retired Employer Match Profit Sharing Money Purchase Voluntary After-Tax QNEC (Safe Harbor Non-Elective) Safe Harbor Match (QMAC) Reallocated Discretionary Forfeiture Reallocated Employer Match Forfeiture Reallocated 415 Suspense Forfeiture Just like Elective Deferral, each additional section is presented on page load with the section collapsed. You can expand each section by clicking on the icon (shown on the left). Only the money types that are available to the plan are presented so you may or may not see all of the money types listed. Reallocated Money Purchase Forfeiture Reallocated Excess Aggregate Forfeiture Is this information correct? Contribution Rules and Formulas This is where you will approve the information presented in the section. If the information looks good to you then answer Yes. If something doesn t look right to you then answer No ; a free form entry text box is presented and you are required to enter comments of why you are saying the information is not correct. This question requires a response; the Save and Continue button will remain disabled until each of the questions has a response. If any are No, the button will also remain disabled until you enter comments in each of the associated text boxes. Name of the associated section. Link that allows you to access the Make Changes secondary page for the Employer Match or Profit Sharing formula(s). This link is presented when one or both of the contribution type formulas have a Formula Type of Discretionary. 62 Plan Information

63 Auto Correction of minimum coverage and general non-discrimination failures for new Contribution Allocations: Elective Deferral Rules and Formulas Identifies if the plan allows the testing application to attempt to autocorrect any minimum coverage and/or general non-discrimination calculation failures. This means that based on certain rules the testing application will add in previously excluded employees to the eligible population in an effort to successfully pass the minimum coverage and/or general non-discrimination test(s). This section details the contribution rules and formula information for the Elective Deferral allocation type. The Elective Deferral Rules and Formulas section is expanded on page load by default. You can collapse the section by simply clicking on the icon (shown to the left). Catch-up Contributions: Identifies if the plan allows for catch-up contributions for employees 50 and older. Match Catch-up Contributions Supported: Plan Deferral Limits: HCE Limits: Safe Harbor Match Formula (QMAC) QNEC (Safe Harbor Non-Elective) Employer Match Formula Profit Sharing Formula Reallocated Forfeiture Top Heavy Minimum Formula Is this information correct? Test Setup and Rules HCE/Key Determination 402(g) Limitation 415 Limitation Minimum Coverage ADP/ACP Identifies if the plan matches on catch-up contribution monies. Identifies the amount an employee can contribute to the elective deferral money type up to the defined plan deferral limits. The limit is presented as a dollar amount, a percentage of compensation or both. Identifies the compensation amount the employee must have earned more than to be considered a highly compensation employee. Just like Elective Deferral, each allocation type section is presented on page load with the section collapsed. You can expand each section by clicking on the icon (shown on the left). Only the allocation types that are available to the plan are presented so you may or may not see all of the money types listed. When expanded, each section presents the contribution rules and formula information established for the plan. This is where you will approve the information presented in the section. If the information looks good to you then answer Yes. If something doesn t look right to you then answer No ; a free form entry text box is presented and you are required to enter comments of why you are saying the information is not correct. This question requires a response; the Save and Continue button will remain disabled until each of the questions has a response. If any are No, the button will also remain disabled until you enter comments in each of the associated text boxes. Name of the associated section. A listing of the compliance tests that are, by default, setup and any tests added by the account manager to be run for the test year. At minimum you will always see the first six tests listed. 414(s), General Non-Discrimination and Deductibility test are optional so you may not see them in the list. 63 Plan Information

64 Top Heavy 414(s) General Non-Discrimination Deductibility Is this information correct? This is where you will approve the information presented in the section. If the information looks good to you then answer Yes. If something doesn t look right to you then answer No ; a free form entry text box is presented and you are required to enter comments of why you are saying the information is not correct. This question requires a response; the Save and Continue button will remain disabled until each of the questions has a response. If any are No, the button will also remain disabled until you enter comments in each of the associated text boxes. Available Actions: Action Save and Continue Back Description Selecting the Save and Continue button saves the updates to the Review Plan Features for Accuracy page, moves you to the next page in the Wizard and saves your online testing progress so the application will know what page to present after Welcome the next time you log in. Selecting the Back button returns you to the previous page and any updates on the page are not saved. Page Dynamics: A free form text entry box is presented when the response for Is this information correct? is No. You can enter up to 255 characters so there is plenty of room to explain why the information section is incorrect. 64 Plan Information

65 Review and Make Changes to the Contribution Rules and Formulas Overview: A secondary page where you can update limited formula information for Employer Match or Profit Sharing when the formula type is Discretionary. How did I get here? Selecting the Make Changes link presented in the Contributions and Formulas section of the Review Plan Features for Accuracy page (last step of Plan Information). What happens next? Selecting the Done button will save your updates and return you to the Plan Information page where you came from. Selecting the Cancel link just returns you to the Plan Information page and none of your updates are saved. Fields: Element Name Review and Make Changes to the Contribution Rules and Formulas Auto Correct minimum coverage or general non-discrimination failures for new Contribution Allocations Employer Match Formula Description Just a page name. You can update this setting that determines whether the compliance testing application should attempt to auto-correct any minimum coverage and/or general non-discrimination calculation failures. This means that based on certain rules the testing application will add in previously excluded employees to the eligible population in an effort to successfully pass the minimum coverage and/or general nondiscrimination test(s). Name of the associated section. 65 Plan Information

66 Formula Type: Frequency of Calculation: Compensation Cap Amount: Allocation Money Type: Compensation Type Used in Calculation: Total Employer Match limit amount: Tier 1 Match % Compensation Deferrals Identifies the formula type for the contribution allocation. If the Employer Match formula is presented to you then this field will always be Discretionary. The Employer Match formula is not available for you to make updates when the formula type is Defined or Not Applicable. You cannot make changes to this value. The frequency of the calculation, you cannot make changes to this value. The valid values you could see are: Plan Year Each Payroll Period Monthly Discretionary Not Applicable Any frequency other than Plan Year, a true up/down process may have to occur at the end of the plan year to ensure that all eligible employees received the appropriate contribution The maximum amount of compensation that can be used in the calculation for the employee. You cannot make changes to this value. The money type for the employee the contribution amount will be allocated to when the contribution is funded. If the contribution is not funded, no updates to the specified money type will be applies. You cannot make changes to this value. The type of compensation that will be used for the allocation. The types available include Plan Year Limit Year Allocation Matching Additional The maximum amount of match contribution that can be allocated to an employee. The percentage of compensation/dollar amount of contributions limits are compared to the calculated allocations based on the match tiers specified in the formula and applied only to those results that exceed the limit percentage/amount. You cannot make changes to this value. Name of the associated formula tier (maximum of five tiers). The percent of match applied to the defined compensation percentage or contribution dollar amount. You can make changes to this value. The percentage of the employees compensation that is used in the calculation. The dollar amount of Elective Deferral and Voluntary After-Tax deferrals (employee contributions) that is used in the calculation. 66 Plan Information

67 Link that allows you to add another Tier to the formula. The link is hidden once there are five tiers presented on the page. (Delete Tier) Allows you to delete a tier for the Employer Match contribution formula. This icon is never presented for Tier 1; once Tier 2 is presented you will see this icon. You can remove Tiers 2 through 5. Profit Sharing Formula Formula Type: Allocation Method: Name of the associated section. Identifies the formula type for the contribution allocation. If the Profit Sharing formula is presented to you then this field will be Discretionary. The Profit Sharing formula is not available for you to make updates when the formula type is Defined or Not Applicable. You cannot make changes to this value. The amount of contributions is expressed using one of the following types of allocation methods (you cannot make changes to this value): Dollar (pro-rata) Plans supply a dollar amount they would like to fund and the individual employees receive a proportionate 67 Plan Information

68 Integration Level: contribution equal to the ratio of their compensation to all other eligible employees multiplied by the overall dollar amount. Flat Dollar (per capita) Each eligible employee receives the same dollar amount. Percentage Each eligible employee is allocated x% of their compensation. Percentage - Maximize The percentage allocated to each employee is based on the percentage required to bring the lowest contributing employee in the specified group up to the 415 limit. All employees in the specified group are maximized out at the 415 limit. All other employees not in the specified group are allocated the same percentage as the lowest employee in the specified group. (Not to worry, the groups referred to here are established on the Profit Sharing contribution page itself. You will find more information in the Contributions chapter which will be distributed with Release 2.) Integrated This method is similar to the Dollar allocation method. However, instead of each eligible employee receiving a proportionate amount based on their compensation ratio alone, certain employees, whose salary exceeds the Taxable Wage Base for Social Security, are allowed an additional proportion of the dollar amount to compensate for the loss of benefit triggered by the Social Security tax cap amount. Cross-Tested Each employee is segregated into a group of 1 or more employees. Each group is then targeted a contribution percent that will either maximize the group to the 415 limit, minimize the group to the lowest possible percentage of compensation, or provide a specific percentage of compensation to the group. Any employee not specifically assigned to a rate group will be grouped together. Used in the integrated method to define the maximum disparity rate that can be used. You cannot make changes to this value. Note: Note: This field is not presented when the Allocation Method is anything other than Integrated. Two Step Four Step Selections that identify if the Profit Sharing calculation is a two-step or four step process. The two-step calculation can be calculated by the testing application in the Contributions process. When the plan is Top Heavy and the Profit Sharing formula is a four step calculation process, an error message is presented on the contribution page and you will encounter a hard stop page exit after the Profit Sharing step of Contributions. A notification will be sent to your RPAM who will calculate the allocation offline and process the contribution. The RPAM will set your testing progress to the next contribution step where you will be able to resume compliance testing. (You cannot make changes 68 Plan Information

69 to this value.) Allocation XXXXXXX: The amount associated with the Allocation Method or Integration Level specified. You cannot make changes to this value. Non-integrated Allocation Method: Allocation Dollar:* Allocation Percent:* Note: Note: The asterisk identifies this as a required field. Integration Allocation Type: Integrated Allocation Method options: Dollar entry field for Integrated Allocation Method (no label): Percent entry field for Integrated Allocation Method (no label): Percent plus dollar entry fields for Integrated Allocation Method (no label): Percent minus dollar entry fields for Integrated Allocation Method (no label): The amount associated with the integration allocation type is used to calculate the Maximum Disparity Rate. You can make changes to this value. Percentage Dollar (Comp to Comp) Maximize Note: This field is not presented when the Allocation Method is anything other than Integrated. The amount associated with the Integration Allocation Type specified. You can make changes to this value. Dollar entry field (no label): Percent entry field (no label): Note: Note: The asterisk identifies this as a required field. Reduce total contribution by amount of excess When allocating the contributions for any allocation method, a plan may optionally decide to allocate the excess amount to other employees in the plan or to simply reduce the total contribution by the excess. If the plan decides to reallocate the excess, then any remaining amounts after all employees have been processed are put back into the pool of available dollars and allocated back to all of the eligible employees again, using the Dollar (pro-rata comp-to-com) method. This process is repeated until either all the excess money is allocated or all employees have been capped to the 415 limit. This option is only presented when the Allocation Methods of: Dollar (Pro Rata Comp to Comp) 69 Plan Information

70 Percent or Dollar(Pro Rata Comp to Comp) Percent Integrated Allocation methods (all) Allocation Money Type: Compensation Type Used in Calculation: Compensation Cap Amount: Total Profit Sharing limit amount: The money type for the employee the contribution amount will be allocated to when the contribution is funded. If the contribution is not funded, no updates to the specified money type will be applies. You cannot make changes to this value. The type of compensation that will be used for the allocation. The types available include Plan Year Limit Year Allocation Matching Additional The maximum amount of compensation that can be used in the calculation for the employee. You cannot make changes to this value. The maximum amount of match contribution that can be allocated to an employee. The percentage of compensation/dollar amount of contributions limits are compared to the calculated allocations based on the match tiers specified in the formula and applied only to those results that exceed the limit percentage/amount. You cannot make changes to this value. Available Actions: Action Done Cancel Description Selecting the Done button saves the updates to the formula(s) and returns you to the page you came from. Selecting the Cancel link returns you to the previous page and any updates on the page are not saved. Page Dynamics: None. 70 Plan Information

71 Plan Information: Page Exit Overview: A hard stop page that prevents you from moving forward in the application. Your only options from any hard stop page is to Save and Exit or move Back to the previous page(s). How did I get here? Indicating the plan is a member of an affiliated service group, the Plan is designated as Safe Harbor but did not operate as a Safe Harbor plan or indicating any of the Plan Features information is incorrect and selecting Save and Continue on the last step of Plan Information. Fields: What happens next? Selecting Save and Exit saves your progress and closes the browser. Selecting Back will take you back to the last page of the Plan Information section. Element Name Header message Exit condition Description Based on the information you provided, this process cannot be continued for the following reasons: Employer is a member of an affiliated service group. The plan is designated as Safe Harbor, but did not operate as a Safe Harbor plan. The plan was terminated during CCYY. Plan Features: General plan Information is incorrect. Plan Features: Employees and Ownership information is incorrect. Plan Features: Eligibility information is incorrect. 71 Plan Information

72 Plan Features: Contribution Rules and Formulas information is incorrect. Plan Features: Test Setup and Rules information is incorrect. Footer message Contact your Plan Manager to discuss further options regarding Compliance Testing and Form 5500 Reporting. Available Actions: Action Save and Exit button Back button Description Selecting the Save and Exit button closes the browser window, the Online Testing Progress is saved on the exit request so if you come back into ecompliance you ll get the same exit page after Plan Information as long as you don t change the options previously selected. Selecting the Back button returns you to the last step of Plan Information. Page Dynamics: Any combination of exit conditions from a single condition up to all eight can be presented for this exit page. Refer to Chapter 12 (Page Exits) for more details regarding the Plan Information page exit. 72 Plan Information

73 Chapter 5 Census Overview: This page highlights the plan features that will be used for compliance testing. It is important that all plan features are verified prior to testing. How did I get here? Select the Plan Features button from the left navigation bar. This chapter will help you understand all of the participant data that is used for Compliance Testing. And there is a lot of it. Specifically, you will become familiar with the following topics: What happens next? Understanding the census grid and all of the employee attributes presented You can navigate to other sections of Adding employees to ensure you have the right population the notebook by selecting any of the Reviewing discrepancy messages and fixing data errors options on the left navigation button bar. Viewing the employees one at a time Initiating a Plan Audit to verify the plan is in good order before testing Exporting the data and importing it back in again The compliance test results rely heavily on the accuracy of the data used. Often, users will spend a majority of their time getting the data ready for testing, because if the census information is incorrect, then the allocations and test results will also be incorrect.

74 Census Main Page Overview: The Census page supports the ability to verify employee census information for accuracy and review discrepancy messages. You can update census information, add employees to the census and remove employees from the notebook. How did I get here? From the last step of Plan Information, selecting Save and Continue on Review Plan Features for Accuracy brings you to the Census page What happens next? Review the employee information. Once you have corrected any errors and verified the employee information is accurate you are ready to move on to plan audits, contributions and running the compliance tests. Fields: Element Name Employee Messages: Total Employee Counts: Description The Employee Messages presents a count of all error and warning discrepancy messages and a total of all discrepancies. As you work through the census, as updates are made this number will fluctuate depending on the discrepancies corrected and new discrepancies identified. These numbers are not relative to the number of employees on the census; an employee can have one or many discrepancies. Counts presented in this section reflect information in Plan Information - Compliance Testing information and the Census. Total Employees: Employee count entered in Plan Information Review Compliance Testing Information: o employer member of a control group is YES and 74 Census

75 o o other member of the control group participate is NO Add the counts entered in # of HCEs and # of NHCEs for non-participating employers to the counts entered in how many employees worked for the employer HCEs: Total of employees that have the HCE checkbox selected. NHCEs: Total of employees that do not have the HCE checkbox selected. Note: If the total employees on the census are less than the total number of employees documented in Plan Information an error message is presented on page load. Discrepancies An error or warning icon indicating the employee has one or more discrepancies identified based on the census data. An employee can have one to many discrepancies; the icon presented represents the highest error severity. Click the icon and a pop-up detailing the discrepancy messages is presented; you can specific if you want to fix the discrepancies on the Census grid or on the Employee Detail page. Error: Discrepancy: Discrepancy checks are performed any time the employee data is changed and saved to the notebook. This can include clicking or tabbing out of a field on the Census grid and selecting the Done, Previous Employee or Next Employee on the Employee Details page. Employee Name SSN Status A warning discrepancy is presented when two or more employees have the same last name as an attempt to identify potential employee relationships within the plan. Name displays as Last, First MI This is the key of the employee and uniquely identifies them when compared to all other employees. In the Add Employee action you will get an error if you enter an SSN that already exists in the Plan. The status defines the current employment and eligibility position of the participant at the end of the plan year being tested. For compliance purposes there are really only 2 types of statuses that matter. Statuses that define a separation from service (terminated, deceased, disabled, and retired) and all other statuses. That status also determines when specific dates and reason information must be provided. Separation Date Separation Reason Rehire Date Inactive Date Suspension Date 75 Census

76 Birth Date Hire Date The birth date is used to determine: minimum age requirements in the Eligibility calculations if the employee is less than 21 years of age by the last available entry date for the Permissive Disaggregation determination if the employee is greater than or equal to 50 years by the calendar year end and the plan supports Catch-up contributions. Discrepancies are presented when the birth date is missing or when the date is greater than or equal to other employee service dates. This date is used in the service calculations to assist in determining service hours, months or days. The calculation uses the earlier of Predecessor Hire Date or the Hire date. Predecessor Hire should be used when the service from the prior employer must be taken into consideration in the event of an acquisition or if the plan credits service with previous employers as defined by the plan document. Note: Predecessor Hire Date is not a required field and should only be used when the plan takes this date into consideration for eligibility. Separation Date Separation Reason Rehire Date HCE CCYY Key This date is required when the status is a separated from service status: Terminated Retired Disabled Deceased The separation date is used in the service calculations to assist in determining the service hours, month or dates and to determine separations in service. Discrepancy when status is not a separated from service status and a Separation Date exists. For testing and calculation purposes, the separation reason is used in conjunction with the last day rule definitions to identify the eligibility status of the employee. The rehire date is used in service calculations and assists in determining the service hours, months or days as well as determining separation in service. Discrepancy when the rehire date is missing and a separation reason is identified, but the status field reflects a non-separated from service status. The HCE and Key identifiers are used in various test calculations and can be determined automatically using the HCE and Key Determination. 76 Census

77 Officer CCYY Limitation Compensation (prior year) CCYY Ownership (test year) CCYY Ownership (prior test year) Used in the Key Calculation in combination with the compensation to determine if the employee is a qualified key employee. Certain conditions require them to be an includable officer. This flag identifies the employee as an officer. The prior year limitation compensation is used in the HCE tests to check for qualifying HCE determination. Discrepancy when value is missing and employment dates show this employee was employed in the prior plan year. Both values are used in the HCE determination calculation. The test year value is used in the Key calculation. If the employee is related to another employee in the plan, then the 2 ownership rates for both employees will be combined when determining if either employee is an HCE or Key. Warning: The combined value should not be accumulated by the user ahead of time when entering it into this field. If this is done, the amounts will be double counted. CCYY Plan Year Compensation CCYY Limitation Compensation CCYY Allocation Compensation CCYY Matching Compensation CCYY Additional Compensation CCYY Hours (plan year) CCYY Hours (prior plan year) CCYY Elective Deferral The plan year and limit year compensations are used in a variety of tests automatically. The Allocation, Matching, and Additional Compensation fields may be optionally used for tests or contribution allocation formulas. Discrepancies will appear when compensations are defined for one or more calculations, and the following occurs: the dollar value is missing and the employment date shows this employee was employed in the plan year. the compensation equals zero but the employee has contributions greater than zero. The test year hours are used in the Eligibility determination for hours worked in the plan year. Discrepancy verifying hours against the salary for the plan year. Prior year hours are used in the test calculations for hours worked in any plan year for contribution eligibility determination. The elective deferral amount is used in the following: 402(g) and Plan Limits test to determine pass/fail and excess Matching calculation to determine the match amount ADP test for calculating employee deferral rate 415 test with other contributions to determine pass/fail and excess Catch-up calculations to determine catch up available and catch-up used amounts For off-calendar year notebooks, there will be an additional field labeled Calendar Elective Deferrals This will be the value used in the Catch-up Calculation and 402(g) tests. It reflects the total Elective 77 Census

78 Deferral contributions for the calendar year in which the plan year begin date occurs. CCYY Catch-up Elective Deferral CCYY Employer Match CCYY Profit Sharing CCYY QNEC CCYY QMAC CCYY Money Purchase CCYY Voluntary After-Tax CCYY Reallocated Matching CCYY Reallocated Profit Sharing CCYY Reallocated Money Purchase CCYY Reallocated 415 Suspense CCYY Reallocated Excess Match Calculated value that reflects the test year catch-up amount. The value is presented as a link. Click the link to access the detail for the catch-up calculation. The employer match value is used in the employer match calculation to identify any true up/down values. This compares the match calculation result with any match money already contributed to the employee. This amount is also used in the following: ACP test for calculating employee ACP rate 415 test with other contributions to determine pass/fail and excess Various tests to identify a match-forfeiture that may be calculated as a result of an elective deferral refund This value can be a contribution that has already been funded or a value that has been calculated but is unfunded A potentially calculated value based on contribution rules. The profit sharing amount is used in the 415 test with other contributions to determine pass/fail and excess. Potentially calculated values based on contribution rules. These values are used in the 415 test with other contributions to determine pass/fail and excess; may be used in ADP or ACP tests depending on the test options. The money purchase value is used in the 415 test with other contributions to determine pass/fail and excess. The voluntary after-tax amount is used in the following: 402(g) and Plan Limits test to determine pass/fail and excess Matching calculation to determine the match amount if the plan matches after-tax contributions ACP test for calculating employee contribution rate 415 test with other contributions to determine pass/fail and excess Catch-up calculations to determine catch up available and catch-up used amounts These values generally reflect forfeiture money types. The values may be calculated based on contribution rules. These values are used in the 415 test with other contributions to determine pass/fail and excess. Value potentially used in any test where the contribution type is based on test options. 78 Census

79 CCYY Calendar Elective Deferral Eligibility Date Union Non-Resident Alien Hourly Contractor/Leased Seasonal Part-Time Predecessor Hire Date One Year of Service Same as elective deferral; this column is presented when the Plan is an off-calendar plan year. A calculated value showing the earliest date the employee became eligible for any of the 12 money type classifications. This date cannot be manually updated. Identifier used in the following calculations: HCE/Key Calculation: impacts the calculations only if the plan option identifying whether the union employees make up 90% or more of the benefiting employees. ADP/ACP: Used to group the ADP/ACP test population and will produce separate test results for Union and Non-Union employees. Eligibility: can be used as a statutory exclusion for any money type. Identifier used in the eligibility calculation for non-resident alien exclusions for any money type and the HCE/Key calculation for top paid group exclusions. This is a statutory exclusion. Identifier used in the eligibility calculations or top paid group exclusions. Employees are considered Salaried when this selection is not checked. Identifier used in the eligibility calculation for contractor exclusions for any money type. Identifier used in the HCE/Key calculation for top paid group exclusions. Identifier used in HCE/Key calculation for top paid group exclusions. Used in the Service calculation to assist in determining the service hours, months or days. The calculation should use the earlier of the Predecessor Hire Date or the Hire Date. This date can be blank. Indicator used to override the service calculation for Permissive Disaggregation. This field is set based on a system calculation to determine one year of service when the test information is built for the first time. Important: Changing this selection will have impact on Permissive Disaggregation. Highest Hours Worked CCYY Unrelated Rollovers The highest number of hours worked in any of the previous plan years starting from the lookback year. Value used in the Top Heavy test to determine adjusted account balance. 79 Census

80 CCYY Related Rollovers CCYY Unrelated Trustee Transfer CCYY Related Trustee Transfer CCYY Account Balance CCYY Distributions CCYY CCYY Distributions (four years range prior to the testing year) Suspension Date Inactive Date 402(g) Refunds Mistake of Fact Job Classification Affiliate Location Employee ID This value does not have any impact to the calculations. Value used in the Top Heavy test to determine adjusted account balance. This value does not have any impact to the calculations. Account balance as of the determination date to determine Top Heavy status. Values used in the Top Heavy test to determine the adjusted account balance. Required when the status is Suspended due to hardship. This date does not have any impact to the test calculations. Required when the status is Inactive. This date does not have any impact to the test calculations. Value used in the 402(g) test to show already processed excess amounts. Checked when a mistake of fact or permissible withdrawal has been processed for the employee. Identifier used in the Eligibility calculation for job classification exclusions for any money type. This field is also used when performing maximizing/grouping calculations. This identifier does not have any impact to the calculations. An affiliate is a separate entity that is associated to and participates in a retirement plan with other entities under the same sponsor company. This field identifies the affiliate to which the participant is assigned. Identifier used in the Eligibility calculation for location exclusions for any money type. The value entered here will be compared with any exclusion criteria provided in which certain locations are excluded from eligibility. This field is also important if you are running the ADP/ACP test by location. The comparison is not case sensitive. A client defined identifier for this employee. This identifier does not have any impact to the calculations. Available Actions: Action Viewable Columns Description You can reduce the number of columns to work with in the grid by 80 Census

81 selecting a pre-determined view. The available options are: All Compensation and Hours Contributions Personal Information Additional Actions Find Employee: Save to File Print icon The additional actions you can perform from the Census page are: Add Employee Import Employees Report Incorrect Contributions View Discrepancy Report View Column Name Definitions Details for each additional action below in Page Dynamics. You can search the employee grid by employee last name or SSN. Just type in a full or partial last name or SSN and press the enter key or click the magnifying glass icon. The first employee that matches the information you entered will be highlighted; to keep searching, using the same information, just hit enter or click the magnifying glass icon again. The Save to File option lets you download all of the employee grid information to a spreadsheet in a.csv format. You are offered two options of saving. The first option will export the census grid into the format needed to import the file back into ecompliance. In this option the Status is presented as a single character, the status and character equivalent are: Active A Deceased X Disabled D Eligible not Participating E Inactive I Not Eligible N Suspended S Terminated T Retired R Transferred Out Y The second option exports the current view of the census grid; this file cannot be imported back into ecompliance. The print option lets you download the Employee Details Report. This report details the employee information and is formatted in a view appropriate for printing. This report is also available on the Review 81 Census

82 Tests page. Additional Actions Add Employee: Import Employees: Report Incorrect Contributions You can add employees directly to the census by selecting this option. Selecting this option provides a pop-up to enter the SSN. You will then be taken to the Employee Detail page where you can enter the employees information. You can import employees into ecompliance. This simple import requires the file format to be in the same order as the default column view in Census. The easiest way to ensure your file is in the proper format is to select the first option in the Save to File action. Selecting this option and confirming will send an alert to the RPAM as well as result in a hard stop at the end of the Census section. The stop is a check point where the RPAM works with you (the plan Sponsor) to investigate and correct (if needed) the reported incorrect contributions. Once the contribution information is in good order the RPAM can set you back at the appropriate point so you can continue with testing. View Discrepancy Report: Provides you the ability to launch and view the Compliance Testing - Discrepancy Report. This discrepancy report provides you the message details for the employees that have a discrepancy. View Column Name Definitions: This feature allows you to view the definitions of each column name. This is helpful to ensure understanding each of the sixty plus columns presented. Page Dynamics: The employees are sorted first in order by the discrepancy severity; errors followed by warnings and then by SSN. You can sort a column in ascending or descending order by clicking on the column header. You can t move or remove a column but you can filter the columns you see through the Viewable Columns options. Manual column sort is retained so long as you are working within Census. This includes the three Plan Audit pages, Employee Detail and the Calculate Contributions pages. Any money type that doesn t have the Eligibility information set-up in Plan Features won t be shown in the employee grid. 82 Census

83 Census: Page Exit (Census Information) Overview: At the end of the Census Information step, the application will present an exit page when Incorrect Contribution(s) are identified. How did I get here? After selecting Save and Continue from the Census page, the exit page will present if your plan contains incorrect contributions that must be addressed offline. What happens next? After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Available Actions: Action Save and Exit Back Description This action saves your online testing progress and notifies your Plan Account Manager of the specific scenarios that need to be addressed. This button will bring you back to the last step in the Census page. 83 Census

84 Page Dynamics: The exit page will list the reasons that the process cannot be continued. This could include any of the following: o Incorrect contribution information was identified. Refer to Chapter 12 (Page Exits) for more details regarding the Census Information page exit. 84 Census

85 Census Catch-up Contribution (Calendar Year) Overview: Presents the calculation results for the Catch Up amounts associated with a qualified employee. This version of the page is presented if the test year is a 01/01 12/31 calendar year. The information on this page is read only. How did I get here? Click on the catch-up dollar amount link within the employee census for a qualifying employee. What happens next? Choosing the Close button will dismiss the page and you will be returned to the employee census. Fields: Element Name Plan Year Elective Deferrals Minus lesser of Plan or 402(g) Limit Excess Elective Deferrals Available Catch-up Limit for Calendar Year <year> Total Plan Year Catch-up Amount Remaining Available Catch-up Description The total amount of contributions into the Elective Deferral money type for the plan year. The Elective Deferrals are compared against the 402g or Plan Limit to determine if there is any excess that can be deemed catch-up. The amount of deferrals that were deemed to be in excess of the Plan or 402g limit. The total catch-up allowed for the calendar year. This is the lesser of the IRS limit or the actual Elective Deferral contributions made. The amount of excess contributions that can be reclassified as Catch Up money. Catch-up money is excluded from most compliance test calculations. The amount of Elective Deferral money that continues to be available for other tests and could in the future be deemed Catch-up contributions if refunds are required. Available Actions: 85 Census

86 Action Close button Description You are returned to the Census page. Page Dynamics: None. 86 Census

87 Census Catch-up Contribution (Off-Calendar Year) Overview: Presents the calculation results for the Catch Up amounts associated with a qualified employee. This version of the page is presented if the test year is an off-calendar year. The user does have the ability to identify the catchup amount allocated to the prior plan year and the allocation of contributions for the current plan year if they are incorrect. How did I get here? Click on the catch-up dollar amount link within the employee census for a qualifying employee. What happens next? Choosing Done button will dismiss the page, save the calculation results, and you will be returned to the employee census. Fields: Element Name Step 1: Calendar Year Elective Deferral Minus: Lesser of Plan or 402g Limit Excess Elective Deferrals Description Deals with the 1 st calendar year The total contributions for the calendar year (01/01 12/31) associated with the plan year begin date. This amount is separated between the portion of the calendar year that resides in the previous plan year and the portion that resides in the current plan year. The Elective Deferrals are compared against the 402g or Plan Limit to determine if there is any excess that can be deemed catch-up. The amount of deferrals that were deemed to be in excess of the Plan 87 Census

88 or 402g limit. Catch-up Limit for Calendar Year <year> Catch Up Amount Allocated to the Period <period> Available Catch-up Amount for the Period <period> Calendar Year Catch Up Contributions Allocated to the Plan Year <year> Step 2: Plan Year Elective Deferrals in Calendar Year <year> 402g Limit for Calendar Year <year> Excess Elective Deferrals Available Catch-up Amount for the year <year> Calendar Year Catch Up Contributions Allocated to the Plan Year <year> Step 3: Plan Year Elective Deferrals Plan Year Catch-up Amounts Previously Allocated from Steps 1 and 2 Employer Defined Plan Limit Excess Elective Deferrals The total catch-up allowed for the calendar year. This is the lesser of the IRS limit or the actual Elective Deferral contributions made. The amount of catch-up that is to be allocated to the portion of the prior plan year that resides within the Step 1 calendar year. This amount is enterable. By default, none of the plan year contribution amount will be allocated as catch-up for the beginning period. The amount of catch-up money that is available to the portion of the current plan year that resides within the Step 1 calendar year. The amount of catch-up money that is actually allocated to the portion of the current plan year that resides within the Step 1 calendar year. Deals with the 2 nd calendar year. The total contributions for the portion of the plan year that is associated with the calendar year for the plan year end date. This amount is enterable. The 402g limit associated with the calendar year for the plan year end date. The amount of deferrals in the 2 nd portion of the plan year that were deemed to be in excess of the 402g limit for the 2 nd calendar year. The amount of catch-up money that is available to the 2 nd calendar year. This is the lesser of the IRS Catchup limit and the actual contributions for the 2 nd calendar year. The amount of catch-up money that is actually allocated to the portion of the current plan year that resides within the Step 2 calendar year. Deals with the plan year values only. The total contributions for the plan year. The contributions are split between calendar years in which they occurred. The amount of the split is based on the value entered in Step 2 of the formula. The amount of catch-up amounts that have been calculated in steps 1 and 2 and are applied to contributions associated with the current test plan year. The plan limit designated by the employer. This can trigger additional catch-up allocations. Since this is a plan year test versus the 402g calendar year test, this check must be done after all 402 excesses have been attributed to catch-up. The amount of excess contributions over the defined plan limit. 88 Census

89 Remaining Available Catch-up Amount Calendar Year Catch-up Elective Deferrals Allocated to the plan year Total Plan Year Catch-up Amount Remaining Available Catch Up Amount At this point in the calculation, catch-up amounts have been determined for both portions of the plan year. Now, the calculation must determine if additional contributions in excess of the plan limit can be treated as catch-ups as well. This field presents the total remaining catch-up amount that could be allocated as catch-up if an excess occurred. The total amount of catch-up allocated to the plan year due to a plan limit failure. Total combined catch-up contributions that will be applied to the plan year. The total includes the following: Total allocated based on the 1 st calendar year. Total allocated based on the 2 nd calendar year. Total allocated based on the plan year alone. The amount of plan year contributions that are still available to be defined as catch-up contributions if a future test requires a refund. Available Actions: Action Done button Cancel Description Saves the changes and returns the user to the Census page. Ignores the changes and returns the user to the Census page. Page Dynamics: The years and periods specified on this page are dynamic based on the off-calendar plan year. 89 Census

90 Census (Add) Employee Detail Overview: Census - Employee Detail supports the ability to verify employee census information for accuracy and review discrepancy messages viewing a single employee s information one at a time. You can update census information in a single employee view and add the detailed employee information on this page. How did I get here? From the Census page, click on the Employee Name link or select Fix in Employee Detail from the discrepancy message pop-up. You can also select the Add Employee option from Additional Actions; enter the SSN and click the Add button. What happens next? Review the employee information. Once you have corrected any errors and added or verified the employee information is correct just select the Done button to return to the Census main page and review remaining discrepancies. Fields: Element Name Discrepancies Description An error or warning icon indicating the employee has one or more discrepancies identified based on the census data. An employee can have one to many discrepancies; the icon presented represents the highest error severity. Click the icon and a pop-up detailing the discrepancy messages is presented; you can specific if you want to fix the discrepancies on the Census grid or on the Employee Detail page. 90 Census

91 Discrepancies are refreshed when you click Done in the employee detail page or when tabbing within the Census. Personal Information Employee Name SSN Birth Date* A warning discrepancy is presented when two or more employees have the same last name as an attempt to identify potential employee relationships within the plan. A discrepancy message is presented when more than one employee share the same SSN. In the Add Employee action you will get an error if you enter an SSN that exists in the selected Plan. Discrepancies are presented when the birth date is missing or when the date is greater than or equal to other employee service dates. The birth date is used to determine: minimum age requirements in the Eligibility Calculation employee is less than 21 years of age by the last available entry date for Elective Deferral in the Permissive Disaggregation Determination employee is greater than or equal to 50 years by calendar year end for Catch-up Calculations. The asterisk indicates this is a minimum required value on the Add Employee feature. Compensation Types and Amounts CCYY Limitation Compensation (prior year) CCYY Plan Year Compensation CCYY Limitation Compensation CCYY Allocation Compensation CCYY Matching Compensation CCYY Additional Compensation Hours CCYY Hours CCYY Hours The prior year limitation compensation is used in the HCE tests to check for compensations exceeding the compensation cap and for qualifying HCE determination. Discrepancies when compensation is defined for one or more calculations: the value is missing and the employment date shows this employees was employed in the plan year. and compensation equals zero but the employee has contributions greater than zero. The compensations are used in various tests and formula based on whether the compensation type is included in the plan features options. Discrepancy verifying hours against the salary for the plan year. The test year hours are used in the eligibility determination for hours worked in the plan year. Prior year hours are used in the test calculations for hours worked in 91 Census

92 any plan year for contribution eligibility determination and Top Paid Group determination (if applicable). Warning: The combined value should not be accumulated by the user ahead of time when entering it into this field. If this is done, the amounts will be doubled. Highest Hours Worked Ownership CCYY Ownership (test year) CCYY Ownership (prior test year) The highest hours the employee worked in any plan year is used in the eligibility calculation for contribution determination. Both values are used in the HCE determination calculation. The test year value is used in the Key calculation. If the employee is related to another employee in the plan, then the 2 ownership rates for both employees will be combined when determining if either employee is an HCE or Key. Warning: The combined value should not be accumulated by the user ahead of time when entering it into this field. If this is done, the amounts will be double counted. Employee Relationship SSN First Name* Errors presented when there are duplicate relationship definitions, nonexistence of the SSN entered in the census or the SSN entered is that of the current employee. Auto-populated with the first name of the employee matching the SSN entered for existing employees. The asterisk indicates this is a minimum required value on the Add Employee feature. MI Last Name* Auto-populated with the middle initial of the employee matching the SSN entered for existing employees. Auto-populated with the last name of the employee matching the SSN entered for existing employees. The asterisk indicates this is a minimum required value on the Add Employee feature. Relationship Identifier of the relationship defined as Lineal Ascendant, Lineal Descendant or Spouse. Employee relationships defined as Spouse will systematically generate an equal relationship on the employee census record that was identified as the spouse. Example: Joe Sponsor establishes a relationship for Jane Smith adding Joe Smith as her spouse. When this relationship record is established 92 Census

93 and saved, the system also established a reciprocating relationship for Joe Smith indicating that Jane Smith is his spouse. Note: Reciprocating the relationship applies to the Relationship of spouse. Lineal Ascendant and Lineal Descendant relationships do not systematically reciprocate to the related employee record. Delete icon Add another link Employment Eligibility Date Predecessor Hire Date Hire Date* Allows you to delete any or all of the relationships defined for the current employee. Allows you to add another relationship to the current employee. A calculated value showing the earliest date the employee became eligible for the money type. This date cannot be manually updated. Used in the Service calculation to assist in determining the service hours, months or days. The calculation should use the earlier of the Predecessor Hire Date or the Hire Date. This date can be blank. Discrepancy when hire date is missing. This date is used in the service calculations to assist in determining service hours, months or days. The calculation uses the earlier of Predecessor Hire Date or the Hire date. The asterisk indicates this is a minimum required value on the Add Employee feature. Rehire Date Discrepancy when the rehire date is missing and a separation reason is identified and the current status is not separated from service. The rehire date is used in service calculations and assists in determining the service hours, months or days as well as determining separation in service. Note: Rehire Date is enabled when the Rehire checkbox is selected. One Year of Service Indicator used to override the service calculation for Permissive Disaggregation. This field is set based on a system calculation to determine one year of service when the test information is built for the first time. Important: Changing this selection will have impact on Permissive Disaggregation. Status* That status determines when specific dates and reason information must be provided: 93 Census

94 Separation Date Separation Reason Rehire Date Inactive Date Suspension Date Inactive Date Suspension Date Separation Date Separation Reason Required when the status is Inactive. This date does not have any impact to the test calculations. Required when the status is Suspended. This date does not have any impact to the test calculations. This date is required when the status is a separated from service status: Terminated Retired Disabled Deceased The separation date is used in the service calculations to assist in determining the service hours, month or dates and to determine separations in service. Discrepancy when status is not a separated from service status and a Separation Date exists. The separation reason is used in conjunction with the last day rule definitions to identify the eligibility status of the employee. Note: Separation Reason is presented when the Status is changed from a Separated from Service status back to Active and the Rehire checked box is selected. Job Classification Employee ID Affiliate* Location* Employee Attributes HCE Identifier used in the Eligibility calculation for job classification exclusions for any money type. This identifier does not have any impact to the calculations. This identifier does not have any impact to the calculations. Identifier used in the Eligibility calculation for location exclusions for any money type. The values are retrieved from TRAC based on values saved for the employee. The HCE identifier is also used is various test calculations; HCE Determination: a resulting value from the plan audit and the user applies the changes and as an indicator that will group this employee as 94 Census

95 an HCE for tests that use HCE as a group. Seasonal Union CCYY Key Non-Resident Alien Contractor/Leased Officer Part-Time Hourly One Year Prior Key Two Years Prior Key Three Years Prior Key Four Years Prior Key Contributions and Balances CCYY Elective Deferral Identifier used in the HCE/Key calculation for top paid group exclusions. Identifier used in the following calculations: HCE/Key Calculation: impacts the calculations only if the plan option identifying whether the union employees make up 90% or more of the benefiting employees. ADP/ACP: Used to group the ADP/ACP test population and will produce separate test results for Union and Non-Union employees. Eligibility: can be used as a statutory exclusion for any money type. The values are retrieved from TRAC based on values saved for the employee. The Key identifier is also used is various test calculations; Key Determination: a resulting value from the plan audit and the user applies the changes and as an indicator that will group this employee as an Key for tests that use Key as a group. Identifier used in the eligibility calculation for non-resident alien exclusions for any money type and the HCE/Key calculation for top paid group exclusions. Identifier used in the eligibility calculation for contractor exclusions for any money type. Identifier used in the Key Calculation in combination with the compensation to determine if the employee is a qualified key employee. Certain conditions require them to be an includable officer. This flag identifies the employee as an officer. Identifier used in HCE/Key calculation for top paid group exclusions. Identifier used in the eligibility calculations or top paid group exclusions. Employees are considered Salaried when this selection is not checked. The prior key information is rolled from the prior year and verified when the census information is built for the notebook. These identifiers impact the Top Heavy test; any employee identified as a former but not current key employee is excluded from the test. Any or all of the Prior Key employee boxes may be checked if enrolling an employee who was a key employee in any previous plan year. The elective deferral amount is used in the following: 402(g) and Plan Limits test to determine pass/fail and excess Matching calculation to determine the match amount 95 Census

96 ADP test for calculating employee deferral rate 415 test with other contributions to determine pass/fail and excess Catch-up calculations to determine catch up available and catch-up used amounts For off-calendar year notebooks, there will be an additional field labeled Calendar Elective Deferrals This will be the value used in the Catch-up Calculation and 402(g) tests. CCYY Catch-up Elective Deferral CCYY Employer Match CCYY Profit Sharing CCYY QNEC CCYY QMAC CCYY Money Purchase CCYY Voluntary After-Tax CCYY Reallocated Matching Calculated value that reflects the test year catch-up amount. This field is presented as read-only unless the employee is age 50 or older and then the field is presented as a link to launch the calculation details supporting the value. The employer match value is used in the employer match calculation to identify any true up/down values. This compares the match calculation result with any match money already contributed to the employee. This amount is also used in the following: ACP test for calculating employee ACP rate 415 test with other contributions to determine pass/fail and excess Various tests to identify a match-forfeiture that may be calculated as a result of an elective deferral refund A potentially calculated value based on contribution rules. The profit sharing amount is used in the 415 test with other contributions to determine pass/fail and excess. Potentially calculated values based on contribution rules. These values are used in the 415 test with other contributions to determine pass/fail and excess; may be used in ADP or ACP tests depending on the test options. The money purchase value is used in the 415 test with other contributions to determine pass/fail and excess. The voluntary after-tax amount is used in the following: 402(g) and Plan Limits test to determine pass/fail and excess Matching calculation to determine the match amount if the plan matches after-tax contributions ACP test for calculating employee contribution rate 415 test with other contributions to determine pass/fail and excess Catch-up calculations to determine catch up available and catch-up used amounts Potentially calculated values based on contribution rules. These values are used in the 415 test with other contributions to determine pass/fail 96 Census

97 CCYY Reallocated Profit Sharing CCYY Reallocated Money Purchase CCYY Reallocated 415 Suspense CCYY Reallocated Excess Match CCYY Calendar Elective Deferral CCYY Unrelated Rollovers CCYY Related Rollovers CCYY Unrelated Trustee Transfer CCYY Related Trustee Transfer CCYY Account Balance CCYY Distributions CCYY CCYY Distributions (four years range prior to the testing year) 402(g) Refunds Totals: and excess. Value potentially used in any test where the contribution type is based on test options. Same as elective deferral; this column is presented when the Plan is an off-calendar plan year. Value used in the Top Heavy test to determine adjusted account balance. This value does not have any impact to the calculations. Value used in the Top Heavy test to determine adjusted account balance. This value does not have any impact to the calculations. Value used in the Top Heavy test to determine adjusted account balance. Values used in the Top Heavy test to determine the adjusted account balance. Value used in the 402(g) test to show already processed excess amounts. This simply presents the total of all values in the Contributions and Balances grid. Available Actions: Action Done Cancel <Previous Employee Next Employee> Description Selecting the Done button saves updates from the Employee Detail page and returns you to the Census main page. Selecting the Cancel link returns you to the Census main page; information updated on the Employee Detail page are not saved. Selecting the Previous Employee button saves any changes and presents the prior employee in the Plan. This button is not available in Add Employee mode. This button is disabled when the first employee in the plan is presented. Selecting the Next Employee button saves any changes and presents the next employee in the Plan. This button is not available in Add 97 Census

98 Employee mode. This button is disabled when the last employee in the plan is presented. Page Dynamics: Service dates are dynamically shown based on the employee status and rehire indicators. In addition, certain contribution types are only shown when defined by the plan. 98 Census

99 Census: Plan Audit - HCE/Key Determination Fields: Overview: On this page, you have the ability to compare the population of Highly Compensated Employees (HCE) and Key employees that you have identified in the census against the population that the ecompliance application has systematically determined to be HCEs and Keys. Any discrepancies between the userdefined populations and the systemgenerated suggestions are highlighted. How did I get here? The HCE/Key Determination page is displayed after selecting Save and Continue from the first step in the Census wizard. What happens next? After completing the page, Clicking Save and Continue will save any updates you have made and return you will be presented with the third step in the Update Census wizard, which is the Review Limit Failures screen. Element Name Verify HCE/Key Employees - Table Description If there are no discrepancies, this table is not presented. For any employees that represent a discrepancy between the census information and the system calculated HCE and Key population, the table presents the following information : SSN HCE (Value on Census) Key (Value on Census) HCE (Suggested Value) Key (Suggested Value) Details The details column will include information that explains why ecompliance suggests a different HCE or Key value. 99 Census

100 Available Actions: Action Find Employee Save to File Print Do you want to apply all of the suggested HCE/Key updates? Save and Continue Back Description If you would like to check on a potential discrepancy for an individual employee, you can enter the employee s last name or Social Security Number in this entry box. Click the search icon to start the search. A message will be presented if no matches are found. If the employee is found in the table, their employee information will be highlighted. Click the search icon again to search for another occurrence of the name and/or SSN. When the last match is found, if you click the search icon again, you will be presented with the first match. This button allows you to save the information in the table in a spreadsheet format. This button launches a.pdf presentation including all information in the table. Select Yes or No to apply all of the changes noted in the table to the Census. After deciding whether or not to apply the suggested changes, the Save and Continue button will save the changes to the Census and present you with the next step in the Plan Audit Review Limit Failures Click to return directly to previous step Page Dynamics: If no discrepancies are identified between the existing and calculated HCE/Key values, then the employee table is not presented. A message will be presented that reads During a review of the plan, no employees were identified as HCE or Key based on the data provided. No action required. When discrepancies are identified, there is an alert message at the top of the page to notify you that at least 1 difference exists. 100 Census

101 Census: Plan Audit - Review Limit Failures Overview: On this page, you have the ability to review Limit Failures for each employee that has failed any of the three limit test (402(g), 415 or Plan Deferral limits). Fields: How did I get here? The Review Limit Failures page is displayed after selecting Save and Continue from the Verify HCE/Key Employees Audit Step. What happens next? After completing the page, Clicking Save and Continue will save any updates you have made and you will be presented with the next step in the Update Census wizard, which is the 414(s) Compensation screen. Element Name Review Limit Failures - Table Description This table presents all employees in the plan and also presents an informational icon for employees that have failed the 402(g), 415 or Plan Deferral Limitation tests. The table contains the following information: Name SSN HCE 402(g) (Excess Contribution) 415 (Excess Contribution) Plan Deferral (Excess Contribution) Plan Year Compensation Limit Year Compensation 101 Census

102 Elective Deferral Catch-up Total Contributions Available Actions: Action Find Employee Save to File Print Do you authorize next steps for corrections at this time? Save and Continue Back Description If you would like to locate an individual employee, you can enter the employee s last name or Social Security Number in this entry box. Click the search icon to start the search. A message will be presented if no matches are found. If the employee is found in the table, their employee information will be highlighted. Click the search icon again to search for another occurrence of the name and/or SSN. When the last match is found, if you click the search icon again, you will be presented with the first match. This button allows you to save the information in the table in a spreadsheet format. This button launches a.pdf presentation including all information in the table. Provides the ability to authorize the next steps needed to begin the correction process. Your Account Manager will be notified of your selection. The Save and Continue button will notify your Account Manager of your selection and present you with the next step in the Plan Audit 414(s) Compensation. Click Close the page and return to the previous step. Page Dynamics: The table will always present all employees in the plan. Sorting will follow the Census grid; primary sort on error and secondary sort on SSN. Table will scroll both vertically and horizontally when column and row data requires scrolling. When there is no elective deferral money type established for the Plan, only the 415 test will be run and presented on the Review Limit Failures plan audit page. 102 Census

103 Plan Audit - 414(s) Compensation Definition Overview: On this page, you have the ability to review the calculated 414s compensation ratio for HCE and NHCE employee groups. Fields: How did I get here? The 414(s) Compensation Definition page is displayed after selecting Save and Continue from the Review Limit Failures Audit Step. What happens next? After reviewing the page, Clicking the Save and Continue button launch the Contributions section of the application. Element Name Evaluate 414(s) - Table Description This table is read only and presents the Average Ratio Difference for each money type determining if the plan passes the 414(s) Compensation Definition test. 103 Census

104 Available Actions: Action Save to File Print Save and Continue Back Description This button allows you to save the information in the table in a spreadsheet format. This button launches a.pdf presentation including all information in the table. This action saves your online testing progress and launches you into the Contributions section of the application This button will bring you back to the Review Limit Failures step. Page Dynamics: If the Plan does not have the 414(s) test rules established, this page is not presented; there will only be 3 steps of the Update Census step in the navigation wizard. 104 Census

105 Census: Page Exit Overview: At the end of the Census step, the ecompliance application will present an exit page if there are specific reasons that you cannot continue on to the Contributions pages. How did I get here? After selecting Save and Continue from the last Census Audit Step, the exit page will present if your plan contains specific scenarios that must be addressed offline. What happens next? After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Available Actions: Action Save and Exit Back Description This action saves your online testing progress and notifies your Plan Account Manager of the specific scenarios that need to be addressed. This button will bring you back to the last step in the Plan Audit. 105 Census

106 Page Dynamics: The exit page will list the reasons that the process cannot be continued. This could include any of the following: o Employer is a member of a controlled group of corporations or businesses under common control. o Newly acquired company is part of a controlled group of corporations. o Incorrect contribution information was identified. o At least one employee failed the RIC Section 402(g), IRC Section 415 or Plan Deferral Limitation Refer to Chapter 12 (Page Exits) for more details regarding the Census page exit. 106 Census

107 Chapter 6 Census Discrepancy Messages TBD

108 Discrepancy Messages Discrepancy Messages Severity Triggering Action Content Error Error Error Error Error Error Employee status is 'Suspended' and Suspension Date is not entered. Suspension Date entered is greater than the current date. Employee status is 'Inactive' and Inactive Date is not entered. Inactive Date entered is greater than the current date. Rehire Date entered is greater than current date. Rehire Date entered is before the employee's Separation Date. A Suspension Date is required. Enter a date. The Suspension Date is invalid. Enter a date that is before or equal to the current date. An Inactive date is required for an inactive employee. Enter a date. The Inactive date is invalid. Enter a date that is before or equal to the current date. The Rehire date is invalid. Enter a date that is before or equal to the current date. The Rehire date is invalid. Enter a date that is after the employee's separation date. Rehire Date is entered, the Separation Date is not A Separation Date is required for an employee with a Error entered. rehire date. Enter a date. Error Employee Birth Date is not entered. A birth date is required. Enter a date. Error Error Error Error Employee Birth Date entered is greater than current date. Employee Hire Date entered is less than the employee Birth Date entered. The employee Suspension Date entered is less than the employee Hire Date entered. The employee Separation Date entered is less than the employee Hire Date entered. The Birth date is invalid. Enter a date that is before or equal to the current date. The Hire date is invalid. Enter a date that is after the employee's birth date. The Suspension Date is invalid. Enter a suspension date that is after the employee's hire date. The employee SeparationDate is invalid. Enter a date that is after the employee's hire date. Error Error Error The employee Separation Date entered is after the employee Rehire Date and the system cannot find another Separation Date that is before the Rehire Date. The employee Inactive Date entered is before the employee Hire Date entered. The employee Rehire Date entered is less than the employee Hire Date entered. The employee SeparationDate is invalid. Enter a date that is after the employee's hire date. The Inactive date is invalid. Enter a date that is after the employee's hire date. The Rehire date is invalid. Enter a date after the employee's hire date. Error The Separation Date is entered and the employee Status is not a separated from service status. The employee has a Separation Date, but is no longer in separation from service status. Verify the employee's status or enter a Rehire Date. The Employee Hire Date is invalid. Enter a date that is Error Employee Hire Date is greater than the current date. before or equal to the current date. Error Employee Hire Date is not entered. An Employee Hire Date is required. Enter a date. 108 Discrepancy Messages

109 Error Error Error Employee total contributions are greater than zero and the Compensation entered is zero. Employee Status is either 'Census' or 'Not Eligible' and the total contributions is greater than zero. The employee compensation entered is zero but the employee is not separated from service. The employee compensation is zero, but the employee has contributions. Verify the employee compensation and contribution information. The employee has contributions, but is in "Census" or "Not Eligible" status. Verify the employee's status. Employee status is invalid for employee compensations. Verify the employee status. Error Error Error Error Error Error Error Error Error Error Error The employee contributions are greater than zero and the Limitation Compensation entered is zero. The employee total contributions is more than the employees compensation amount entered. The Plan Year Compensation entered is more than the Limit Year Compensation entered. Status is terminated, deceased, retired or disabled and no Separation Date is entered. Predecessor Hire Date is before the Birth Date. SSN entered in the relationship table is not found on the employee census. Employee is eligible for matching contributions, has deferral contributions within the plan year and did not have matching contributions applied within the plan year (Match Formula must be non-plan year) Two or more compensations are defined the same, the same compensation values on the census do not match. Elective deferral contribution amount is greater than the compensation values. Employee balance in the money type is greater than zero and the employee does not meet eligibility requirements. Employer match contribution amount is greater than the compensation values. The employee limitation compensation is zero, but the employee has contributions. Verify the employee's compensation and contribution information. The employee compensation amount is less than the total amount of contributions. Verify the employee's compensation and contribution information. The Plan Year Compensation amount is greater than the Limit Year Compensation. Verify the employee's compensation and contribution information. The Separation Date is required for the employee Status. Enter a date. Verify the employee's predecessor hire date and birth date. No match was found on the employee census. Verify the relative's SSN. Employee is eligible for employer match contributions. Verify the match contributions. Some compensations are defined the same and the compensation values are different. Verify the compensation values. Elective Deferral contribution amount is greater than at least one compensation amount provided. Verify the values. Employee is not eligible for <money type name> but the balance in the <money type name> contributions is greater than zero. Verify the employee or plan information. Employer Match contribution amount is greater than at least one compensation amount provided. Verify the values. 109 Discrepancy Messages

110 Error Error The lookback Hours field has hours and the employee hire date is within the test year. Match formula is using the Match Compensation and the employer match contribution is greater than the employee match compensation. Employee contains hours for a plan year prior to the Hire Date. Verify the employee hours and service information. Employer Match contribution amount is greater than your Match compensation amount provided. Verify the values. Warning Employee compensation is entered and hours are zero. Employee hours are required. Enter a valid value. Warning Employee Status is not entered. Verify the employee's status. Warning Warning Warning Warning Warning Warning Warning Warning Warning Warning Warning Warning Warning Warning Employee has a separated from service status and has contributions during the test year. Birth Date entered is after the Test Year End Date. Rehire Date is before Birth Date. Separation Date is after Test Year End Date. Plan Entry Date is before Hire Date. Plan Entry Date is before Test Year End Date and employee doesn't have any compenastion. Rehire Date is before the Plan Entry Date. Separation Date is before the Plan Entry Date. Suspended Date is after the Test Year End Date. Suspended Date is before the Plan Entry Date. Employee has compensation in the test year and a Separation Date before the Test Year End Date. Employee has compensation in the test year and a Rehire Date before the Test Year End Date. SSN entered in the relationship table does not have a relationship selected. Employee is in multiple plans in the aggregate notebook and the employee status is not the same across all plans. The employee has contributions during the Test Year and has a separation status. Verify the employee's status. The employee's birth date is after the test year end date. Verify the employee's birth date. The Rehire Date is invalid. Enter a date after the Birth Date. Verify the employee Separation Date and Test Year End Date information. The Plan Entry Date is before the Hire Date. Enter a Plan Entry Date after the Hire Date. Verify the Plan dates and employee compensation information. Verify the employee Rehire Date and Plan Entry Date information. Verify the employee Separation Date and Plan Entry Date information. Verify the employee Suspended Date and Test Year End Date information. Verify the employee Suspended Date and Plan Entry Date information. The Compensations are greater than zero in the test year and the Separation Date is before the Test Year End Date. Verify the employee information. Verify the employee status, Rehire Date and Test Year End Date information. Entered employee relative requires a relationship type. Select a relationship. The Status differs across plans. Verify the aggregate value. 110 Discrepancy Messages

111 Warning Warning Warning Warning Warning Warning Warning Employee is in multiple plans in the aggregate notebook and the location does not the same across all plans. Employee is in multiple plans in the aggregate notebook and the plan year compensation is not the same across all plans. Employee is in multiple plans in the aggregate notebook and the plan year hours are not the same across all plans. Employee is in multiple plans in the aggregate notebook and the look-back hours are not the same across all plans. Two or more employees on the census have the same last name related to the person entered on the Employee Relationship table. Message is a warning when the ineligible reason is due to Last Day Rule or Hours, otherwise the message is an error. Two or more employees on the census have the same last name. The Location differs across plans. Verify the aggregate value. The <Compensation> differs across plans. Verify the aggregate value. The Plan Year Hours differ across plans. Verify the aggregate value. The Look-back Hours differ across plans. Verify the aggregate value. Employee last name matches one or more employees in the census. Verify all relationships have been defined. Employee is not eligible for <money type name> but the balance in the <money type name> contributions is greater than zero. Verify the employee or plan information. Two or more employees have the same name. Verify the employee information. 111 Discrepancy Messages

112 Chapter 7 Contributions It is often necessary to assist the plan sponsor in performing contribution allocation prior to completing their compliance tests. This chapter will help you understand how to perform those contribution calculations, and if you are ready, how to submit a contribution payroll to plan sponsors for review.

113 Contributions Census Complete Overview: A simple notification page telling you that you have completed the census and are ready to begin contributions. This is pretty much the halfway point through your compliance testing experience. How did I get here? From the last plan audit step in Census, select Save and Continue. What happens next? From this page you can continue to the first contribution allocation step, go back to the last step of the Census plan audit or skip contributions altogether.. Fields: Available Actions: Action Save and Continue Skip Contributions Back Description Save and Continue brings you to the first contribution allocation page for Safe Harbor Match (QMAC). You can skip contributions altogether if Forfeiture Reallocations are not required AND there are not required or Defined contribution formula types. Don t worry about whether or not you should know for sure if you can skip contributions because the application will evaluate the contribution formula information for you. If you can skip contributions the button is presented and if you can t, the button is hidden. You are returned to the last step of the plan audit in Census. Page Dynamics: 113 Contributions

114 The Skip Contributions button is hidden when Forfeiture Reallocations are required or any of the contribution allocation formula types are Defined. 114 Contributions

115 Census Calculate QMAC (Safe Harbor Employer Match) Overview: Calculate QMAC supports the ability to calculate year-end true-up or hypothetical qualified employer match allocations. When the money type is classified as Safe Harbor you will see the name Safe Harbor Employer Match instead of QMAC. How did I get here? The QMAC calculation is one of the steps in the Contributions wizard. From the completed the Census review page, select Save and Continue. What happens next? Review the calculated results; if you want to, you can establish a payroll roster to process the contribution funding. If an overage occurs, additional action may be required. Fields: Element Name QMAC Formula (employee grid) Description When the formula rules are set up for the QMAC allocation, the formula details are presented in this section. The formula is always defined ; the formula information is protected and presented in a bulleted list The employee grid provides the calculated results of the allocation. You can view messages for an employee by clicking the icon. (See Messages section for more detailed information.) The rest of the information provided in the grid is read-only; however, there is some important information. Excluded: A check in this column means the employee was excluded from the calculation. 115 Contributions

116 Calculated: This value is the amount determined to be allocated based on the formula rules. Already Funded: The amount already included in the employee balance on the Census page. Due: Difference between the Calculated and Already Funded amounts if the result is a positive value. Overage: Difference between the Calculated and Already Funded amounts if the result is a negative value. An overage may indicate that the employee received more contributions throughout the year than they were due and could subsequently trigger a corrective adjustment. This grid is not presented when the calculation cannot be performed. Do you want to fund the total contributions of $<999,999,999.99> at this time? Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? Once you have reviewed the calculation, you have the option to fund the contribution directly through the application. Selecting Yes will present you with funding options including any forfeiture balances that may be available as well as banking instructions that you already have on file. Enter the amount to fund for payment authorization of the allocation. You may have the option to generate an in-progress payroll file with the calculated contribution information. If there are insufficient funds in the funding accounts and no ACH instructions on file, the second question on the left is presented. This will allow you to establish the payroll file now but the contribution will not be processed until the money is received to fund the contribution. If you want to fund the total QMAC contributions due of $<999,999,999.99>, contact your Plan Manager at (555) and exit the application. If you do not want to fund the Profit Sharing contribution at this time, click Save and Continue. If no ACH instructions established and there are no forfeiture accounts established for the plan, the message third message on the left will be presented: Note: The message text is slightly different when the Plan Manager phone number is not available. The funding question is not presented when: The total value for the Due column is $0.00. The formula has determined that no employees require an additional contribution. The allocation money type is not established in the formula. Important: We can t assume we know what you want to do, so you 116 Contributions

117 must select a response for this question as well. Available Actions: Action Find Employee: Save to File Print icon Save and Continue button Description You can search the employee grid by employee last name or SSN. Just type in a full last name or SSN and press the enter key or click the magnifying glass icon. The first employee that matches the information you entered will be highlighted; to keep searching, using the same information, just hit enter or click the magnifying glass icon again. The Save to File option lets you download all of the employee grid information to a spreadsheet in a.csv format. The print option lets you download the employee grid information into a.pdf document that is presented in a separate browser tab. The.pdf is formatted in a view that is appropriate for printing the allocation information. If you selected Yes to fund the contribution, a pending roster will be submitted. If you selected No, your allocation will not be saved and you will continue to the next contribution step that is applicable to your plan. Note: This button is not available for you to select until you have answered all questions on the page. Back Button You are returned to the previous contribution page and no calculated allocations are saved to the notebook. Page Dynamics: o o The QMAC Contributions page will not display if there is no safe harbor employer match money type established for your plan. If a QMAC formula has not been established for your plan you will receive the following message: If you would like to perform a QMAC contribution calculation, contact your Plan Manager at (555) If you do not want to perform a QMAC contribution at this time, click Save and Continue. o The message is a little different if we don t have a phone number for your Plan Manager. The following message is presented when Yes is selected for the default funding question (Do you want to fund the total contributions of $<999,999,999.99> at this time?). o Pending transactions for $<999,999,999.99> will be submitted for the above accounts by clicking Save and Continue. 117 Contributions

118 o The above message is replaced with the following message when there are insufficient forfeiture funds and no ACH instructions are on file for the plan. An In Progress roster will be submitted for the above accounts by clicking Save and Continue. These transactions will not be processed or confirmed until funding is received. Please submit funding to process this transaction. o In addition to the alternative message, a dialogue window is presented with the following message when submitting the in progress payroll file. The forfeiture account(s) do not contain enough money to fund the QMAC contribution and there are no banking instructions on file. Please contact your Plan Account Manager to fund this allocation. Note that this contribution allocation will not be contributed into participant accounts until we receive the assets to fund the contribution. The Save and Continue button remains disabled when page level errors are presented. You have two options when this occurs, use the Back button to correct the errors (if possible) or select the Save & Exit link at the top of the page to close the application. 118 Contributions

119 Contributions: Page Exit (QMAC) Overview: After the QMAC contribution step, the application will present an exit page if there are specific reasons that you cannot continue through the Contributions pages. How did I get here? After selecting Save and Continue from the QMAC contribution page the exit page is presented when the QMAC contribution allocation results in specific scenarios that must be addressed offline. What happens next? Available Actions: After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Action Save and Exit Back Description This action saves your online testing progress and notifies your Plan Account Manager of the specific scenarios that need to be addressed. This button will bring you back to the last step in the QMAC contribution page. Page Dynamics: 119 Contributions

120 The exit page will list the reasons that the process cannot be continued. This could include any of the following: o The system was unable to determine the allocations for the employees due to a Minimum Coverage failure. o Employer over contributed to QMAC per the QMAC formula. Refer to Chapter 12 (Page Exits) for more details regarding the QMAC page exit. 120 Contributions

121 Census Calculate QNEC (Safe Harbor Non-Elective) Overview: Calculate QNEC supports the ability to calculate year-end true-up or hypothetical qualified non-elective allocations. When the money type is classified as Safe Harbor you will see the name Safe Harbor Non-Elective instead of QNEC. How did I get here? The QNEC calculation is one of the steps in the Contributions wizard. Select Save and Continue from the contribution page presented prior to this page. What happens next? Review the calculated results; if you want to, you can establish a payroll roster to process the contribution funding. If an overage occurs, additional action may be required. Fields: Element Name QNEC (employee grid) Description When the formula rules are set up for the QNEC allocation, the formula details are presented in this section. The formula is always defined meaning the formula information is protected on this page and presented in a bulleted list. The employee grid provides the calculated results of the allocation. You can view messages for an employee by clicking the icon. (See Messages section for more detailed information.) The rest of the information provided in the grid is read-only; however, there is some important information. Excluded: A check in this column means the employee was 121 Contributions

122 excluded from the calculation. Calculated: This value is the amount determined to be allocated based on the formula rules. Already Funded: The amount already included in the employee balance on the Census page. Due: Difference between the Calculated and Already Funded amounts if the result is a positive value. Overage: Difference between the Calculated and Already Funded amounts if the result is a negative value. An overage may indicate that the employee received more contributions throughout the year than they were due and could subsequently trigger a corrective adjustment. This grid is not presented when the calculation cannot be performed. Do you want to fund the total contributions of $<999,999,999.99> at this time? Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? Once you have reviewed the calculation, you have the option to fund the contribution directly through the application. Selecting Yes will present you with funding options including any forfeiture balances that may be available as well as banking instructions that you already have on file. Enter the amount to fund for payment authorization of the allocation. You may have the option to generate an in-progress payroll file with the calculated contribution information. If there are insufficient funds in the funding accounts and no ACH instructions on file, the second question on the left is presented. This will allow you to establish the payroll file now but the contribution will not be processed until the money is received to fund the contribution. If you want to fund the total QNEC contributions due of $<999,999,999.99>, contact your Plan Manager at (555) and exit the application. If you do not want to fund the Profit Sharing contribution at this time, click Save and Continue. If no ACH instructions established and there are no forfeiture accounts established for the plan, the message third message on the left will be presented: Note: The message text is slightly different when the Plan Manager phone number is not available. The funding question is not presented when: The total value for the Due column is $0.00. The formula has determined that no employees require an additional contribution. The allocation money type is not established in the formula. 122 Contributions

123 Available Actions: Important: We can t assume we know what you want to do, so you must select a response for this question as well. Action Find Employee: Save to File Print icon Save and Continue button Description You can search the employee grid by employee last name or SSN. Just type in a full last name or SSN and press the enter key or click the magnifying glass icon. The first employee that matches the information you entered will be highlighted; to keep searching, using the same information, just hit enter or click the magnifying glass icon again. The Save to File option lets you download all of the employee grid information to a spreadsheet in a.csv format. The print option lets you download the employee grid information into a.pdf document that is presented in a separate browser tab. The.pdf is formatted in a view that is appropriate for printing the allocation information. If you selected Yes to fund the contribution, a pending roster will be submitted. If you selected No, your allocation will not be saved and you will continue to the next contribution step that is applicable to your plan. Note: This button is not available for you to select until you have answered all questions on the page. Back Button You are returned to the previous contribution page and no calculated allocations are saved to the notebook. Page Dynamics: o o The QNEC Contributions page will not display if there is no safe harbor non-elective money type established for your plan. If a QNEC formula has not been established for your plan you will receive the following message: If you would like to perform a QNEC contribution calculation, contact your Plan Manager at (555) If you do not want to perform a QNEC contribution at this time, click Save and Continue. o The message is a little different if we don t have a phone number for your Plan Manager. The following message is presented when Yes is selected for the default funding question (Do you want to fund the total contributions of $<999,999,999.99> at this time?). o Pending transactions for $<999,999,999.99> will be submitted for the above accounts by clicking Save and Continue. 123 Contributions

124 The funding question documented above is replaced with the following question when no bank information is established for the plan or the funding account(s) are insufficient for the contribution. o Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? o The above message is replaced with the following message when there are insufficient forfeiture funds and no ACH instructions are on file for the plan. An In Progress roster will be submitted for the above accounts by clicking Save and Continue. These transactions will not be processed or confirmed until funding is received. Please submit funding to process this transaction. o In addition to the alternative message, a dialogue window is presented with the following message when submitting the in progress payroll file. The forfeiture account(s) do not contain enough money to fund the QNEC contribution and there are no banking instructions on file. Please contact your Plan Account Manager to fund this allocation. Note that this contribution allocation will not be contributed into participant accounts until we receive the assets to fund the contribution. The Save and Continue button remains disabled when page level errors are presented. You have two options when this occurs, use the Back button to correct the errors (if possible) or select the Save & Exit link at the top of the page to close the application. 124 Contributions

125 Contributions: Page Exit (QNEC) Overview: After the QNEC contribution step, the application will present an exit page if there are specific reasons that you cannot continue through the Contributions pages. How did I get here? After selecting Save and Continue from the QNEC contribution page the exit page is presented when the QNEC contribution allocation results in specific scenarios that must be addressed offline. What happens next? Available Actions: After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Action Save and Exit Back Description This action saves your online testing progress and notifies your Plan Account Manager of the specific scenarios that need to be addressed. This button will bring you back to the last step in the QNEC contribution page. 125 Contributions

126 Page Dynamics: The exit page will list the reasons that the process cannot be continued. This could include any of the following: o The system was unable to determine the allocations for the employees due to a Minimum Coverage failure. o Employer over contributed to QNEC per the QNEC formula. Refer to Chapter 12 (Page Exits) for more details regarding the QNEC minimum page exit. 126 Contributions

127 Census Calculate Employer Match Overview: Calculate Employer Match supports the ability to calculate year-end trueup or hypothetical match allocations. How did I get here? The Employer Match calculation is one of the steps in the Contributions wizard. Select Save and Continue from the contribution page presented prior to this page. What happens next? Review the calculated results; if you want to, you can establish a payroll roster to process the contribution funding. If an overage occurs, additional action may be required. Fields: Element Name Employer Match Formula Description When the formula rules are set up for the Employer Match allocation, the formula details are presented in this section. 127 Contributions

128 If the formula is defined, the formula information is protected and presented in a bulleted list. If the formula is discretionary, there are specific values you can edit on directly on the page. The Calculate button is available for selection once you change any information in this section. If information is required to calculate the contribution allocation, instructions are presented. Clicking this icon lets you delete a tier from the formula. Clicking this icon lets you add another tier to the formula. (employee grid) The employee grid provides the calculated results of the allocation. You can view messages for an employee by clicking the icon. (See Messages section for more detailed information.) The rest of the information provided in the grid is read-only; however, there is some important information. Excluded: A check in this column means the employee was excluded from the calculation. Calculated: This value is the amount determined to be allocated based on the formula rules. Already Funded: The amount already included in the employee balance on the Census page. Due: Difference between the Calculated and Already Funded amounts if the result is a positive value. Overage: Difference between the Calculated and Already Funded amounts if the result is a negative value. An overage may indicate that the employee received more contributions throughout the year than they were due and could subsequently trigger a corrective adjustment. This grid is not presented when the calculation cannot be performed. Do you want to fund the total contributions of $<999,999,999.99> at this time? Do you want to generate an In Progress payroll roster for the total contributions of Once you have reviewed the calculation, you have the option to fund the contribution directly through the application. Selecting Yes will present you with funding options including any forfeiture balances that may be available as well as banking instructions that you already have on file. Enter the amount to fund for payment authorization of the allocation. You may have the option to generate an in-progress payroll file with the calculated contribution information. If there are insufficient funds 128 Contributions

129 $<999,999,999.99> at this time? in the funding accounts and no ACH instructions on file, the second question on the left is presented. This will allow you to establish the payroll file now but the contribution will not be processed until the money is received to fund the contribution. If you want to fund the total Employer Match contributions due of $<999,999,999.99>, contact your Plan Manager at (555) and exit the application. If you do not want to fund the Profit Sharing contribution at this time, click Save and Continue. If no ACH instructions established and there are no forfeiture accounts established for the plan, the message third message on the left will be presented: Note: The message text is slightly different when the Plan Manager phone number is not available. The funding question is not presented when: The total value for the Due column is $0.00. The formula has determined that no employees require an additional contribution. The allocation money type is not established in the formula. Available Actions: Important: We can t assume we know what you want to do, so you must select a response for this question as well. Action Calculate button Find Employee: Save to File Description When you arrive on this page, the calculate button is typically not available for selection. This is because, if we can, the allocation is calculated and presented to you in the employee grid. This button is available for selection only when you update any information in the formula section or when required discretionary information is not available to process the calculation. When selected, the employee grid is updated with the new allocation results. Be sure to review the results. You can search the employee grid by employee last name or SSN. Just type in a full last name or SSN and press the enter key or click the magnifying glass icon. The first employee that matches the information you entered will be highlighted; to keep searching, using the same information, just hit enter or click the magnifying glass icon again. The Save to File option lets you download all of the employee grid information to a spreadsheet in a.csv format. 129 Contributions

130 Print icon Save and Continue button The print option lets you download the employee grid information into a.pdf document that is presented in a separate browser tab. The.pdf is formatted in a view that is appropriate for printing the allocation information. If you selected Yes to fund the contribution, a pending roster will be submitted. If you selected No, your allocation will not be saved and you will continue to the next contribution step that is applicable to your plan. Note: This button is not available for you to select until you have answered all questions on the page. Back Button You are returned to the previous contribution page and no calculated allocations are saved to the notebook. Page Dynamics: o o The Employer Match Contributions page will not display if there is no employer match money type established for your plan. If an Employer Match formula has not been established for your plan you will receive the following message: If you would like to perform an Employer Match contribution calculation, contact your Plan Manager at (555) If you do not want to perform an Employer Match contribution at this time, click Save and Continue. o The message is a little different if we don t have a phone number for your Plan Manager. The following message is presented when Yes is selected for the default funding question (Do you want to fund the total contributions of $<999,999,999.99> at this time?). o Pending transactions for $<999,999,999.99> will be submitted for the above accounts by clicking Save and Continue. The funding question documented above is replaced with the following question when no bank information is established for the plan or the funding account(s) are insufficient for the contribution. o Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? o The above message is replaced with the following message when there are insufficient forfeiture funds and no ACH instructions are on file for the plan. An In Progress roster will be submitted for the above accounts by clicking Save and Continue. These transactions will not be processed or confirmed until funding is received. Please submit funding to process this transaction. 130 Contributions

131 o In addition to the alternative message, a dialogue window is presented with the following message when submitting the in progress payroll file. The forfeiture account(s) do not contain enough money to fund the Employer Match contribution and there are no banking instructions on file. Please contact your Plan Account Manager to fund this allocation. Note that this contribution allocation will not be contributed into participant accounts until we receive the assets to fund the contribution. The Save and Continue button remains disabled when page level errors are presented. You have two options when this occurs, use the Back button to correct the errors (if possible) or select the Save & Exit link at the top of the page to close the application. 131 Contributions

132 Contributions: Page Exit (Employer Match) Overview: After the Employer Match contribution step, the application will present an exit page if there are specific reasons that you cannot continue through the Contributions pages. How did I get here? After selecting Save and Continue from the Employer Match contribution page the exit page is presented when the Employer Match contribution allocation results in specific scenarios that must be addressed offline. What happens next? After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Available Actions: Action Save and Exit Description This action saves your online testing progress and notifies your Plan Account Manager of the specific scenarios that need to be addressed. 132 Contributions

133 Back This button will bring you back to the last step in the Employer Match contribution page. Page Dynamics: The exit page will list the reasons that the process cannot be continued. This could include any of the following: o The system was unable to determine the allocations for the employees due to a Minimum Coverage failure. o Employer over contributed to Employer Match per the Employer Match formula. Refer to Chapter 12 (Page Exits) for more details regarding the Employer Match page exit. 133 Contributions

134 Contributions Calculate Profit Sharing Overview: The Calculate Profit Sharing page supports the ability to calculate year-end plan discretionary or defined allocations How did I get here? Depending on the number of employer allocations your plan supports, the Profit Sharing Contributions page will present as one of the multiple steps in the Contributions section of the Wizard. From the Employer Match page, select Save and Continue. What happens next? Review the calculated results; if you want to, you can choose to fund the allocations directly through ecompliance using ACH instructions that you have on file and/or forfeiture assets to fund the contribution. 134 Contributions

135 Fields: Element Name Profit Sharing Formula Make Changes (employee grid) Description When the formula rules are set up for your Profit Sharing allocation, the formula details are presented in this section. Allocation methods available for the Profit Sharing formula are: Dollar (Pro Rata Comp to Comp) Flat Dollar (per Capita) Percentage Dollar (Pro Rata Comp to Comp) OR Percentage Integrated Cross-Tested Percentage Maximize If your formula is specifically defined in your plan document, the majority of the information is protected and presented in a bulleted list. If the formula is discretionary, there is specific information you can edit on directly on the page. The Calculate button is available for selection once you change any information in this section. If information is required to calculate the contribution allocation, instructions are presented. The employee grid provides the calculated results of the allocation. You can view messages for an employee by clicking the icon. (See Messages section for more detailed information.) The rest of the information provided in the grid is read-only; however, there is some important information. Excluded: A check in this column means the employee was excluded from the calculation. Calculated: This value is the amount determined to be allocated based on the formula rules. Already Funded: The amount already included in the employee balance on the Census page. Due: Difference between the Calculated and Already Funded amounts if the result is a positive value. Overage: Difference between the Calculated and Already Funded amounts if the result is a negative value. An overage may indicate that the employee received more contributions throughout the year than they were due and could subsequently trigger a corrective adjustment. This grid is not presented when the calculation cannot be performed. 135 Contributions

136 Do you want to fund the total contributions of $<999,999,999.99> at this time? Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? Once you have reviewed the calculation, you have the option to fund the contribution directly through the application. Selecting Yes will present you with funding options including any forfeiture balances that may be available as well as banking instructions that you already have on file. Enter the amount to fund for payment authorization of the allocation. You may have the option to generate an in-progress payroll file with the calculated contribution information. If there are insufficient funds in the funding accounts and no ACH instructions on file, the second question on the left is presented. This will allow you to establish the payroll file now but the contribution will not be processed until the money is received to fund the contribution. If you want to fund the total Profit Sharing contributions due of $<999,999,999.99>, contact your Plan Manager at (555) and exit the application. If you do not want to fund the Profit Sharing contribution at this time, click Save and Continue. If no ACH instructions established and there are no forfeiture accounts established for the plan, the message third message on the left will be presented: Note: The message text is slightly different when the Plan Manager phone number is not available. The funding question is not presented when: The total value for the Due column is $0.00. The formula has determined that no employees require an additional contribution. The allocation money type is not established in the formula. Available Actions: Important: We can t assume we know what you want to do, so you must select a response for this question as well. Action Calculate button Description When you arrive on this page, the calculate button is typically not available for selection. This is because, if we can, the allocation is calculated and presented to you in the employee grid. This button is available for selection only when you update any information in the formula section or when required discretionary information is not available to process the calculation. When selected, the employee grid is updated with the new allocation results. Be sure to review the results. 136 Contributions

137 Find Employee: Save to File Print icon Save and Continue button You can search the employee grid by employee last name or SSN. Just type in a full name or SSN and press the enter key or click the magnifying glass icon. The first employee that matches the information you entered will be highlighted; to keep searching, using the same information, just hit enter or click the magnifying glass icon again. The Save to File option lets you download all of the employee grid information to a spreadsheet in a.csv format. The print option lets you download the employee grid information into a.pdf document that is presented in a separate browser tab. The.pdf is formatted in a view that is appropriate for printing the allocation information. If you selected Yes to fund the contribution, a pending roster will be submitted. If you selected No, your allocation will not be saved and you will continue to the next contribution step that is applicable to your plan. Note: This button is not available for you to select until you have answered all questions on the page. Back Button You are returned to the previous contribution page and no calculated allocations are saved to the notebook. Page Dynamics: The Profit Sharing Contributions page will not display if there is no profit sharing money type established for your plan. If a Profit Sharing formula has not been established for your plan you will receive the following message: o If you would like to perform a Profit Sharing contribution calculation, contact your Plan Manager at (555) If you do not want to perform a Profit Sharing contribution at this time, click Save and Continue. o The message is a little different if we don t have a phone number for your Plan Manager. The following message is presented when Yes is selected for the default funding question (Do you want to fund the total contributions of $<999,999,999.99> at this time?). o Pending transactions for $<999,999,999.99> will be submitted for the above accounts by clicking Save and Continue. The funding question documented above is replaced with the following question when no bank information is established for the plan or the funding account(s) are insufficient for the contribution. o Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? 137 Contributions

138 o The above message is replaced with the following message when there are insufficient forfeiture funds and no ACH instructions are on file for the plan. An In Progress roster will be submitted for the above accounts by clicking Save and Continue. These transactions will not be processed or confirmed until funding is received. Please submit funding to process this transaction. o In addition to the alternative message, a dialogue window is presented with the following message when submitting the in progress payroll file. The forfeiture account(s) do not contain enough money to fund the Employer Match contribution and there are no banking instructions on file. Please contact your Plan Account Manager to fund this allocation. Note that this contribution allocation will not be contributed into participant accounts until we receive the assets to fund the contribution. If your plan is a cross tested plan and the General Non-Discrimination Benefits Basis (Cross-Tested) is missing or invalid, you will receive the following message: We are unable to determine the allocation for the employee due to missing or invalid General Non- Discrimination Benefits Basis (Cross-Tested) information. Contact your Plan Manager at (555) for assistance. The Save and Continue button remains disabled when page level errors are presented. You have two options when this occurs, use the Back button to correct the errors (if possible) or select the Save & Exit link at the top of the page to close the application. Additional Formula Information: You are probably familiar with the more common allocation methods Dollar (Pro Rata Comp to Comp), Percentage, Flat Dollar and Dollar (Pro Rata Comp to Comp) or Percentage. You may not be as familiar with the Percentage-Maximize, Integrated or Cross-Tested; each allocation methods are a bit more complex and require additional information to process the calculation. There is specific information that is collected directly on the contribution page. Let s break down each of these allocation methods: Percentage Maximize: Employees must be manually grouped into a maximize or other group. There is an option in the formula section on the page to access the Group Assignments page; all you need to do is tell us who goes in what group. Employees in the maximum group are maxed out at the 415 limit; all others get the same percentage as the lowest employee in the max group. When the group assignments are complete you can process the calculation. Integrated: Each eligible employee gets a comparable amount based on their compensation ratio and certain employees whose salary exceeds the taxable wage base for Social Security are allowed an additional proportion of the dollar amount. (This compensates for the loss of benefit cause by the Social Security tax cap.) If not defined in the formula rules, all you need to do is select and Integration Allocation Type and the associated amount if applicable. Even if this information is provided, it is always available to change when needed on the contributions page. 138 Contributions

139 Cross-Tested: All employees are segregated into a group of 1 or more employees. Each group is targeted a contribution percent that will maximize the group to the 415 limit, minimize the group to the lower percent of compensation or apply a specified percent of compensation to the associated group. It sounds complicated (and it is) but all you need to do is establish the groups and include the details for each group; maximize, minimize or allocation percent. You can do this directly on the contribution page in the formula section. Next you will need to specify the employees into the respective groups. Like the Percentage-Maximize method, you do this on the Group Assignments page. Once all employees are assigned to a group all that s left is to calculate the allocation. This is by far the most complex of the profit sharing formula types!! Only one group within the entire contribution groups table can have a checkbox (maximize or minimize) selected. The group that is identified as maximized or minimized cannot be assigned an allocation rate. When one group is maximized or minimized, all other groups must be assigned an Allocation Percent. Allocation Percent will default to blank upon page entry; 0.00 is not a valid entry. The Assign Groups and Calculate buttons will be disabled until all groups have been assigned the minimum or maximum contribution or an allocation rate. Groups can be added or removed for the Cross Tested Allocation Method however at minimum two groups must exist to cross-test in the profit sharing calculation. Group names must be unique; the following message will be presented when two or more groups have the same name. Two or more groups contain the same name; group names must be unique to continue to Assign Groups. 139 Contributions

140 Contributions Calculate Profit Sharing Group Assignments i Overview: Group Assignments support the ability to segregate employees into defined groups for the Profit Sharing Cross- Tested and Percentage Maximize allocation methods. How did I get here? If your plan is a Cross Tested plan, and your profit sharing formula has been established as cross tested, you will be presented with the Group Assignments page when you reach the Profit Sharing allocation screen. What happens next? Once you ve assigned employees to their respective groups and selected the goal of the allocation, all you need to do is select the Done button to return to the Profit Sharing Contribution screen. Fields: Element Name (employee grid) Description The employee grid provides indicators to identify employees that are HCE, Key or Officers and current and prior year ownership percentages. All of this is informational data for your reference; what s really important is the Group Assignments column. This is where you specify 140 Contributions

141 which employee goes in what group. Percentage Maximize; employees not assigned to the Maximize group are defaulted to the Other group. You will not see Other in the list of groups; this is all handled behind the scenes. Cross Tested; employees not assigned to a group will be defaulted to the last group in the list. Again, this is done for you behind the scenes. Available Actions: Action Done button Cancel link Description You are returned to the Calculate Profit Sharing page; group assignments are retained for the duration of your login session. The button disabled until you assign at least one employee to a group. You are returned to the Calculate Profit Sharing page and no group assignment updates are applied. Page Dynamics: The Done button is replaced with a Close button when you cannot perform the page action. This can occur due to business rules or errors presented when the page is loaded. 141 Contributions

142 Contributions: Page Exit (Profit Sharing) Overview: After the Profit Sharing contribution step, the application will present an exit page if there are specific reasons that you cannot continue through the Contributions pages. How did I get here? After selecting Save and Continue from the Profit Sharing contribution page the exit page is presented when the Profit Sharing contribution allocation results in specific scenarios that must be addressed offline. What happens next? Available Actions: After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Action Save and Exit Back Description This action saves your online testing progress and notifies your Plan Account Manager of the specific scenarios that need to be addressed. This button will bring you back to the last step in the Profit Sharing contribution page. Page Dynamics: 142 Contributions

143 The exit page will list the reasons that the process cannot be continued. This could include any of the following: o The system was unable to determine the allocations for the employees due to a Minimum Coverage failure. o The system was unable to determine the allocations for the employees due to a General Non- Discrimination failure. o The Plan is Top Heavy and uses an Integrated Profit Sharing allocation method. Certain contributions cannot be processed online. o The system was unable to determine the Profit Sharing allocation for the employees as this plan is Topy Heavy and uses the 4 step Integrated Profit Sharing Formula. o Employer over contributed to Profit Sharing per the Profit Sharing formula. Refer to Chapter 12 (Page Exits) for more details regarding the Profit Sharing page exit. 143 Contributions

144 Contributions Calculate Forfeitures Overview: Calculate Forfeitures supports the ability to calculate year-end or hypothetical forfeiture reallocations. Forfeiture assets are the funds left in a retirement plan when employees have terminated employment and are less than 100% vested in employer contributions. If the Plan chooses, the forfeiture assets may be divided amount the remaining participants in the plan. When no forfeiture balances are available there is no reallocation required. How did I get here? The Forfeiture calculation is one of the steps in the Contributions wizard. Select Save and Continue from the contribution page presented prior to this page. What happens next? Review the calculated results; if you want to, you can choose to fund the allocations directly through ecompliance using the forfeiture assets to fund the contribution. 144 Contributions

145 Fields: Element Name Forfeiture Reallocations Formula Description When the formula rules are set up for the Forfeiture Reallocation, the formula details are presented in this section. (employee grid) Do you want to reallocate the total Forfeiture Balance of $999,999, at this time? The employee grid provides the calculated results of the allocation. You can view messages for an employee by clicking the icon. (See Messages section for more detailed information.) The rest of the information provided in the grid is read-only; however, there is some important information. Excluded: A check in this column means the employee was excluded from the calculation. Forfeiture Funding Type: This value is the amount determined to be reallocated based on the formula rules. This column can be presented up to four times with each column corresponding to the forfeiture account with a balance greater than $0.00 and a reallocation method of Comp to Comp. This grid is not presented when the calculation cannot be performed. You have the option to generate a payroll file with the calculated contribution information. This question will present as you are required to deplete your forfeiture account balance. This question is not presented when: the allocation money type is not established in the formula. The total value for the Forfeiture Funding Type column is $0.00. Important: We can t assume we know what you want to do, so you must select a response for this question as well. Available Actions: Action Find Employee: Save to File Description You can search the employee grid by employee last name or SSN. Just type in a full last name or SSN and press the enter key or click the magnifying glass icon. The first employee that matches the information you entered will be highlighted; to keep searching, using the same information, just hit enter or click the magnifying glass icon again. The Save to File option lets you download all of the employee grid information to a spreadsheet in a.csv format. 145 Contributions

146 Print icon Save and Continue button The print option lets you download the employee grid information into a.pdf document that is presented in a separate browser tab. The.pdf is formatted in a view that is appropriate for printing the allocation information. If you selected Yes to fund the contribution, a pending roster will be submitted. If you selected No, your allocation will not be saved and you will continue to the next contribution step that is applicable to your plan. Note: This button is not available for you to select until you have answered all questions on the page. Back Button You are returned to the previous contribution page and no calculated allocations are saved to the notebook. Page Dynamics: If your forfeiture account balance is required to be reallocated but you have a custom formula for calculating the reallocation defined in your plan document, you will receive the following message: $<999,999,999.99> is required to be reallocated. If your Forfeiture account balance(s) are $0.00 OR all forfeiture accounts not required to be reallocated, you will receive the following message: No forfeitures are required to be reallocated. 146 Contributions

147 Contributions: Page Exit (Forfeiture Reallocation) Overview: After the Forfeiture Reallocation contribution step, the application will present an exit page if there are specific reasons that you cannot continue through the Contributions pages. How did I get here? After selecting Save and Continue from the Forfeiture Reallocation contribution page the exit page is presented when the Forfeiture Reallocation contribution allocation results in specific scenarios that must be addressed offline. What happens next? After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Available Actions: Action Save and Exit Description This action saves your online testing progress and notifies your Plan 147 Contributions

148 Account Manager of the specific scenarios that need to be addressed. Back This button will bring you back to the last step in the Forfeiture Reallocation contribution page. Page Dynamics: The exit page will list the reasons that the process cannot be continued. This could include any of the following: o $<999,999,999.99> is required to be reallocated. o The system was unable to determine the allocations for the employees due to a Minimum Coverage failure. Refer to Chapter 12 (Page Exits) for more details regarding the Forfeiture Reallocation page exit. 148 Contributions

149 Contributions Calculate Top Heavy Minimum Fields: Overview: Calculate Top Heavy Minimum supports the ability to calculate required top heavy minimum allocations. If the plan is determined to be top heavy in the prior plan year a minimum contribution of at least 3% is required. Not to worry, the testing tool will help you determine if this contribution is required. How did I get here? The Top Heavy Minimum Balances Due calculation is one of the steps in the Contributions wizard. Select Save and Continue from the contribution page presented prior to this page. What happens next? Review the calculated results; if you want to, you can fund the allocation directly through ecompliance with pre-established ACH instructions and/or forfeiture account assets. Element Name Top Heavy Minimum Formula Description When the formula rules are set up for the Top Heavy Minimum 149 Contributions

150 allocation, the formula details are presented in this section. The formula is defined ; the formula information is protected and presented as text indicating that a 3% minimum contribution of the employees limit year compensation is due no later than the current year end. The percent presented in the text is the lesser of 3.00% of the limit compensation OR the highest percent allocated to any key employee. The date presented is twelve months after the current test plan yearend period. (employee grid) The employee grid provides the calculated results of the allocation. You can view messages for an employee by clicking the icon. (See Messages section for more detailed information.) The rest of the information provided in the grid is read-only; however, there is some important information. Excluded: A check in this column means the employee was excluded from the calculation. Calculated: This value is the amount determined to be allocated based on the formula rules. Due: Amount of minimum contribution due to the employee. This grid is not presented when the calculation cannot be performed. Do you want to fund the total contributions of $<999,999,999.99> at this time? Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? Once you have reviewed the calculation, you have the option to fund the contribution directly through the application. Selecting Yes will present you with funding options including any forfeiture balances that may be available as well as banking instructions that you already have on file. Enter the amount to fund for payment authorization of the allocation. You may have the option to generate an in-progress payroll file with the calculated contribution information. If there are insufficient funds in the funding accounts and no ACH instructions on file, the second question on the left is presented. This will allow you to establish the payroll file now but the contribution will not be processed until the money is received to fund the contribution. If you want to fund the total Top Heavy Minimum contributions due of $<999,999,999.99>, contact your Plan Manager at (555) and exit the application. If you do not want to fund the Profit Sharing contribution at this time, click Save and Continue. If no ACH instructions established and there are no forfeiture accounts established for the plan, the message third message on the left will be presented: Note: The message text is slightly different when the Plan Manager phone number is not available. 150 Contributions

151 The funding question is not presented when: The total value for the Due column is $0.00. The formula has determined that no employees require an additional contribution. The allocation money type is not established in the formula. Important: We can t assume we know what you want to do, so you must select a response for this question as well. Available Actions: Action Find Employee: Save to File Print icon Save and Continue button Description You can search the employee grid by employee last name or SSN. Just type in a full last name or SSN and press the enter key or click the magnifying glass icon. The first employee that matches the information you entered will be highlighted; to keep searching, using the same information, just hit enter or click the magnifying glass icon again. The Save to File option lets you download all of the employee grid information to a spreadsheet in a.csv format. The print option lets you download the employee grid information into a.pdf document that is presented in a separate browser tab. The.pdf is formatted in a view that is appropriate for printing the allocation information. If you selected Yes to fund the contribution, a pending roster will be submitted. If you selected No, your allocation will not be saved and you will continue to the next contribution step that is applicable to your plan. Note: This button is not available for you to select until you have answered all questions on the page. Back Button You are returned to the previous contribution page and no calculated allocations are saved to the notebook. Page Dynamics: 151 Contributions

152 The instructional text below the page title and the following message is presented, replacing the questions below the employee grid, when the calculated Due amount is $0.00. No Top Heavy Minimum contributions due. The following message is presented when Yes is selected for the default funding question (Do you want to fund the total contributions of $<999,999,999.99> at this time?). o Pending transactions for $<999,999,999.99> will be submitted for the above accounts by clicking Save and Continue. The funding question documented above is replaced with the following question when no bank information is established for the plan or the funding account(s) are insufficient for the contribution. o Do you want to generate an In Progress payroll roster for the total contributions of $<999,999,999.99> at this time? o The above message is replaced with the following message when there are insufficient forfeiture funds and no ACH instructions are on file for the plan. An In Progress roster will be submitted for the above accounts by clicking Save and Continue. These transactions will not be processed or confirmed until funding is received. Please submit funding to process this transaction. o In addition to the alternative message, a dialogue window is presented with the following message when submitting the in progress payroll file. The forfeiture account(s) do not contain enough money to fund the Top Heavy Minimum contribution and there are no banking instructions on file. Please contact your Plan Account Manager to fund this allocation. Note that this contribution allocation will not be contributed into participant accounts until we receive the assets to fund the contribution. The Save and Continue button remains disabled when page level errors are presented. You have two options when this occurs, use the Back button to correct the errors (if possible) or select the Save & Exit link at the top of the page to close the application. 152 Contributions

153 Contributions: Page Exit (Top Heavy Minimum) Overview: After the Forfeiture Reallocation contribution step, the application will present an exit page if there are specific reasons that you cannot continue through the Contributions pages. How did I get here? After selecting Save and Continue from the Forfeiture Reallocation contribution page the exit page is presented when the Forfeiture Reallocation contribution allocation results in specific scenarios that must be addressed offline. What happens next? After reviewing the page, Clicking the Save and Exit button to notify your Plan Account Manager who will contact you to discuss next steps. Available Actions: Action Save and Exit Description This action saves your online testing progress and notifies your Plan 153 Contributions

154 Account Manager of the specific scenarios that need to be addressed. Back This button will bring you back to the last step in the Forfeiture Reallocation contribution page. Page Dynamics: The exit page will list the reasons that the process cannot be continued. This could include any of the following: o The system was unable to determine the allocations for the employees due to a Minimum Coverage failure. o Pending transactions are being processed that impact the plan year currently being tested. o Thank you for completing the Compliance testing information gathering process. Your Plan Manager will contact you when your Compliance Tests are complete. o You are finished! Thank you for completing the Compliance testing information gathering process. You may exit the application. Refer to Chapter 12 (Page Exits) for more details regarding the Top Heavy Minimum page exit. 154 Contributions

155 Chapter 8 Test Results You ve gotten this far. Now it s time to see how the rubber meets the road to see how the plan meets its compliance obligations. In this section you will read about the following activities: Running tests Review results Identifying and processing corrective actions

156 Tests: Run Tests (less than 10,000* employees) Overview: The page is used to run and review the compliance tests. There are two views of this page depending on the number of employees in the census but the purpose is the same to run the tests. This view is presented when the employee total is less than 10,000 employees. How did I get here? Selecting Save and Continue from the last step of Contributions or select Save and Continue from the Welcome page where this was the last page accessed when exiting the application from the prior login session. What happens next? Review the results and determine if any corrective actions are necessary. Download the reports for each test as necessary. Available Actions: Action Run Tests Button Back button Description Select to execute the test(s) identified for the plan. Selecting the Back button returns you to the previous page. Page Dynamics: Clients can customize the number of employees that determine which view to present of this page, the default value is 10,000. When the total number of employees on the census is less than the default or customized amount the tests are run and results are presented almost immediately. 156 Test Results

157 Tests: Run Tests (10,000* or more employees) Overview: The page is used to run and review the compliance tests. There are two views of this page depending on the number of employees in the census but the purpose is the same to run the tests. This view is presented when the employee total is equal to or greater than 10,000* employees. How did I get here? Selecting Save and Continue from the last step of Contributions or select Save and Continue from the Welcome page where this was the last page accessed when exiting the application from the prior login session. Fields: What happens next? All you have to do is wait for the that tells you the tests are complete then you can log back in to review the results.* Don t forget, you must include your before running the tests! Element Name Address entry field Description This is where you enter the address of the person(s) you want to receive notification the tests have run and results are ready for review. You can enter up to 25 addresses; just include a comma between each address. Make sure not to enter a space in between addresses or you will get an error. All addresses must be in the proper format example@ .com Addresses entered (and the Run Tests or Save & Exit is selected) the next time you access this page the same addresses will be defaulted in the entry box. If you remove any defaulted addresses those will no longer be saved and defaulted for the next time. 157 Test Results

158 Available Actions: Action Run Tests Button Back button Description Select to execute the test(s) identified for the plan. Selecting the Back button returns you to the previous page. Page Dynamics: Clients can customize the number of employees that determine which view to present of this page, the default value is 10,000. When the total number of employees on the census is equal to or greater than the default amount or customized amount the tests are run and the only option presented is to exit the application. An notification is delivered to each addresses specified letting you know the tests are complete and results are available for review. When you select the Run Tests button, step 2 of Test Results is presented with a message letting you know you will be notified at the address provided when the results are available. Take note of the message instructing you to contact your Account Manager if you don t receive an within 24 hours of executing the tests. 158 Test Results

159 Tests: Review Test Results Overview: You can review the test results, view reports, access corrective actions (if applicable) or start the compliance testing process over from this page. How did I get here? Selecting Run Tests from step 1 or select Save and Continue from the Welcome page where this was the last page accessed when exiting the application from the prior login session. What happens next? Review the results and determine if any corrective actions are necessary; all corrective actions can be initiated from this page. You can also download the reports for each test as needed. Fields: Element Name Message notifications Test Description Any informational or warning messages specific to the results are presented at the top of the page. At least 1 compliance test failed and additional action is required. Top Heavy Minimum Contributions are due for XX/XX/XXXX XX/XX/XXXX. Make Minimum Contributions of $99, Provides a list of Compliance tests that are established and executed for the plan. 402(g): run by default when the plan allows for Elective 159 Test Results

160 Deferrals. 415 Limitation: 402(g) test results are required as input when the plan allows for Elective Deferrals. 414(s): this test must be added by your Plan Manager, if you do not see this test in the list and feel it should be run for the plan, contact the Plan Manager. Minimum Coverage: 402(g) and 415 limitation results are required as input. ADP/ACP: 402(g), 415 and Minimum Coverage results are required as input. Top Heavy for Plan Year MM/DD/CCYY MM/DD/CCYY: determines the top heavy status of the plan for the next test year. General Non-Discrimination: this test must be added by your Plan Manager, if you do not see this test in the list and feel it should be run for the plan, contact the Plan Manager. Deductibility : this test must be added by your Plan Manager, if you do not see this test in the list and feel it should be run for the plan, contact the Plan Manager. Test Status Corrective Action Indicates the status of the test execution. Statuses include: Not Run Passed Failed Indicates a summary of actions specific to each test ran including subtests and grouping options. Test Name Test Status Sponsor 402(g) Limitation Passed No action required. 402(g) Limitation Failed Your Plan Manager will contact you to determine the appropriate course of action. 415 Limitation Passed No action required. 415 Limitation Failed Your Plan Manager will contact you to determine the appropriate course of action. 414(s) Passed No action required. 414(s) Failed At least one definition of compensation exceeds the 414(s) ratio test. Your Plan Manager will contact 160 Test Results

161 you to determine the appropriate course of action. Minimum Coverage Passed No action required. Minimum Coverage Failed Your Plan Manager will contact you to determine the appropriate course of action. Minimum Coverage Failed The Plan is part of a control group with non-participating employers. The plans may be aggregated for testing purposes. Contact your Plan Manager at (555) to determine the appropriate course of action. ADP / ACP Passed No action required. ADP / ACP Failed View Contribution of $< >. ADP / ACP Failed Corrective contributions are complete. No action required. ADP / ACP Failed View Excess Distribution of $< >. ADP / ACP Failed All refunds have been re-characterized. No action required. View report for details. ADP / ACP Failed Corrective distributions are complete. No action required. ADP / ACP Failed View Contribution of $< > Or View Excess Distribution of $< Test Results

162 ADP / ACP Failed Contact your Plan Manager at (555) to determine the appropriate course of action. ADP / ACP Failed The Plan is part of a control group with non-participating employers. The plans may be aggregated for testing purposes. Contact your Plan Manager at (555) to determine the appropriate course of action. Top Heavy for Plan Year <MM/DD/CCYY - MM/DD/CCYY> Top Heavy for Plan Year <MM/DD/CCYY - MM/DD/CCYY> General Non- Discrimination General Non- Discrimination Passed Failed Passed Failed This plan is not Top Heavy. No action required. This plan is Top Heavy. Additional action may be required. If this plan operated as a Safe Harbor plan, discuss these results with the Plan Manager. (Learn more link) No action required. Your Plan Manager will contact you to determine the appropriate course of action. Deductibility Passed No action required. Deductibility Failed The total of the employee contributions for the year exceeds the deductibility limit for the plan type. Contact your Plan Manager for more information. 162 Test Results

163 Reports Additional Information Displays None or a report icon. Select the report icon to launch a PDF file of the test results. This section provides additional reporting pertinent to the compliance test notebook. The following reports are available: Plan Features Summary Report: Listing of the Plan Features details established the test year. Census Detail Report: Complete snapshot of the Census employee information. Census Discrepancy Report: Outstanding employee discrepancies with a severity of Warning. Don t worry that you won t see any severity of error in this report, tests can t be executed when there are outstanding error discrepancies. HCE Determination Report: Listing of the results from the HCE Determination performed in the 2 nd step of Census. Key Determination Report: Listing of the results from the Key Determination performed in the 2 nd step of Census. Available Actions: Action Start Over link Save and Exit button Description When you click this link you will see a message pop up asking if you really want to delete the test results. If you select Cancel then nothing happens but if you select the Continue button the test results will be deleted and you will be taken back to step one of the Plan Information section. This allows you to step through the sections, updating information along the way if needed and run the tests again. Allows you to close and exit the ecompliance application. Page Dynamics: Multiple Corrective Actions can be produced for the following tests: Minimum Coverage: o Tested separately by Non-Excludable and Otherwise Excludable groups. Determined by Minimum Coverage Permissive Disaggregation test option ADP/ACP o Tested separately by Non-Union & Union groups Occurs when the plan has both groups and Money Type Eligibility does not exclude Unions o Tested separately by Non-Excludable and Otherwise Excludable Determined by Minimum Coverage Permissive Disaggregation test input o Tested separately by Locations Determined by ADP/ACP Test Separately by Location test option 163 Test Results

164 Tests: Corrective Contribution Overview: The Test Results: Process a Contribution page provides you with the ability to view and fund ADP/ACP corrective contributions due because the plan failed the non-discrimination test(s). How did I get here? From the Review Test Results screen, you clicked the link to process a corrective contribution as the result of a failed test. What happens next? If you determine that you would like to fund the contribution, a roster will be submitted. Fields: Element Name Corrective Contribution Details Table Description Provides plan sponsors with the ability to view and fund ADP/ACP corrective contributions due because the plan failed non-discrimination test(s). Available Actions: Action Save to File Print Description This button allows you to save the information in the table in a spreadsheet format. This button launches a.pdf presentation including all information in the table. 164 Test Results

165 Do you want to fund the total contributions of $XX,XXX.XX at this time? Provides plan sponsors the ability to fund the contribution due and specify the amount to fund from the available forfeiture accounts and ACH bank account. Page Dynamics: The money types that are presented for both ADP and ACP corrective contributions are based on Plan Features settings. The money types should be reviewed before funding the roster. The Done button is disabled until the user selects yes or no to the funding question. 165 Test Results

166 Tests: Excess Distribution (Vesting Percentage) Overview: The Test Results: Process an Excess Distribution Vesting Percentage page is the first step in the Excess Distribution wizard. This page provides you with the ability to review Vesting percentages associated with the corrective distributions due because the plan failed the ACP non-discrimination test(s). How did I get here? From the Review Test Results screen, you clicked the link to process a corrective distribution refund as the result of a failed test. What happens next? Enter the vesting percentage for each HCE due a refund, then select Continue to proceed to the next step in the wizard. Fields: Element Name Excess Distribution Vesting Percentage Table Description The Excess Distribution Vesting Percentage Details Table provides plan sponsors with the ability to view and distribute ADP/ACP corrective excess distributions because the plan failed the non-discrimination tests. Available Actions: Action ACP Vesting % Description Entering the ACP Vesting % and tabbing out causes the Vested ACP Excess and Forfeited ACP Excess columns and calculated amounts to appear for the corresponding employee. 166 Test Results