DATAIR 401(k) with Cash Balance Plan Design 1

Transcription

1 DATAIR 401(k) with Cash Balance Plan Design N. Main Street Anytown, IL (630) sales@datair.com Three Digit Plan Number: 100

2 Employee Census Key SVC Ages Dates Percent Owner PS FS Gender PA AA ARA Birth Hire Part Retire Compensation Hours Worked HCE OEX Janie Ash Taylor Birch Sally Cypress Todd Filbert Susie Ironwood John Redbud Sam Zelkova Y Total: F /05/75 08/22/05 01/01/08 10/01/37 $59,50 * 7 27 M /18/79 11/16/06 01/01/08 04/01/41 $49,50 * F /08/63 01/03/02 01/01/08 05/01/25 $85,00 * 5 34 M /28/86 09/14/07 04/01/08 03/01/48 $55,00 * 9 40 F /03/91 10/10/03 01/01/10 01/01/54 $44,50 * M /19/67 07/03/02 01/01/08 09/01/29 $64,00 * 11 7 M /16/58 03/14/03 01/01/08 11/01/20 $440,00 * Y $797,50 Count Compensation Active Fully Vested Benefits Active Partially Vested Benefits Active Without Vested Benefits Terminated with Vested Benefits Terminated without Vested Benefits Terminated with Deferred Vested Benefits Terminated - Paid Out Currently Receiving Benefits Inactives Ineligibles 0 $0 0 $0 7 $797,500 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 * Employee worked more than minimum hours required for service credit. Key: AA=Attained Age FS=Future Service HCE=Highly Compensated Employee OEX=Otherwise Excludable PA=Participation Age PS=Past Service ARA=Assumed Retirement Age

3 Contribution Summary Contribution Compensation 401(k) Safe Harbor 401(m) Employer Comp Cash Balance* Comp Total Contrib Total Owner Total 255,000 23, , , , Employee Total 357,500 14,300 10, , , , Totals: $612,500 $37,300 $10,725 $0 $18,375 $160,838 $189,938 Contribution Detail Contribution Age Ret Age Own Compensation 401(k) Safe Harbor 401(m) Employer Comp Cash Balance* Comp Total Contrib Total Owner Sam Zelkova x 255,000 23, , , , Subtotals: $255,000 $23,000 $0 $0 $7, $150, $157, Employee Janie Ash ,500 2,380 1, , , , Taylor Birch ,500 1,980 1, , , , Sally Cypress ,000 3,400 2, , , , * Cash Balance Contribution represents the estimated pay credit to the hypothetical account and not the actual funding requirement.

4 Contribution Summary Contribution Detail Contribution Age Ret Age Own Compensation 401(k) Safe Harbor 401(m) Employer Comp Cash Balance* Comp Total Contrib Total Employee Todd Filbert ,000 2,200 1, , , , Susie Ironwood ,500 1,780 1, , , John Redbud ,000 2,560 1, , , , Subtotals: $357,500 $14,300 $10,725 $0 $10, $10, $32, Totals: $612,500 $37,300 $10,725 $0 $18,375 $160,838 $189,938 * Cash Balance Contribution represents the estimated pay credit to the hypothetical account and not the actual funding requirement.

5 Deductible Contribution Limit Total DC Participating Compensation 25% of DC Compensation 6% of DC Compensation $612,50 $153, $36,75 Total Employer DC Contribution $29,10 DC Contribution as Percent of DC Compensation (must be 25% or less) 4.75% DC Contribution Passes Deductibility Test Total DB/DC Participating Compensation 25% of DB/DC Compensation DB Minimum Required Contribution at Val Date (MRC) DB Maximum Contribution (404(o)) $612,50 $153, $138, $160, DB/DC Deductibility Test Does Not Apply DC Contribution is 6% or less of DC Participating Compensation. 404(a)(7) combined plan limit does not apply. DB Contribution must be at least MRC and no more than DB Maximum.

6 410(b) Minimum Coverage Test Passed 410(b) Minimum Coverage Test I. Ratio Percentage Test - Passed A. Benefiting B. Not Benefiting C. Total Passed Satisfied Plan Eligibility Number of Participants NHCE's HCE's Total D. Percentage (A/C) 10% 10% E. Ratio Percentage (NHCE's/HCE's) d (must be 70% or more) Ratio percentage exception codes: a=only HCE's, b=no HCE's benefiting, d=all NHCE's benefiting II. Average Benefit Test - Passed A. Nondiscriminatory Classification Test 1. NHCE's Concentration Percentage 2. Safe Harbor Percentage 3. Unsafe Harbor Percentage 4. Ratio Percentage Passed d Ratio Percentage is greater than or equal to Safe Harbor Percentage - Passed All Together Benefit Basis Annual Accrued-to-Date B. Average Benefit Percentage Test w/o PD with PD w/o PD with PD 1. Average Benefit Percentage of NHCE's Average Benefit Percentage of HCE's Average Benefit Percentage (B1/B2) % % % % (must be 70% or more) Pass Pass Pass Pass Equivalent Contribution Basis Annual w/o PD % Fail with PD % Fail

7 410(b) Minimum Coverage Test H C E B E N O E X Att Age Testing Age Past Svc Testing Annual Compensation Benefit Accruals Annual Method Accruedto-Date Percentages Benefit Basis Annual Accrued-to-Date w/o PD with PD w/o PD with PD Equivalent Contribution Basis Annual w/o PD with PD Non-Highly Compensated Janie Ash Y , Taylor Birch Y , Sally Cypress Y , Todd Filbert Y , Susie Ironwood Y , John Redbud Y , Subtotals: $357, Total NHCE's 6 Average Benefit Percentage Highly Compensated Sam Zelkova Y Y ,00 1, Subtotals: $255, Total HCE's 1 Average Benefit Percentage Average Benefit Percentage Test % % % % 29.34% 36.94% Pass Pass Pass Pass Fail Fail

8 Top Heavy Test The Plan is Top Heavy for the Next Plan Year Employee Classification Employees Considered Account Bal/PVAB Receivable Excluded Bal/PVAB Prior Distributions Adjusted Bal/PVAB Percent of Total Key Employees 1 236,15 236, % Non-Key Employees 6 77, , % Totals: 7 $313, $ $ $ $313, %

9 Top Heavy Test (detail) Distributions Key Status Total Bal/PVAB Receivable Excluded Bal/PVAB Current Year Prior Year (-1) Prior Year (-2) Prior Year (-3) Prior Year (-4) Adjusted Bal/PVAB Key Employees Sam Zelkova Key 236,15 236,15 Subtotals: $236,15 $ $ $ $ $ $ $ $236,15 Non-Key Employees Janie Ash Non-Key 12, , Taylor Birch Non-Key 10, , Sally Cypress Non-Key 20, , Todd Filbert Non-Key 11,10 11,10 Susie Ironwood Non-Key 7,02 7,02 John Redbud Non-Key 15, , Subtotals: $77, $ $ $ $ $ $ $ $77, Excluded Employees Grand Total: $313, $ $ $ $ $ $ $ $313,265.64

10 401(a)(26) Minimum Participation Test (Detail) Passed 401(a)(26) Minimum Participation Test A. Total Number of Employees B. Excludable Employees C. Total Not Excluded (A-B) D. Total Benefiting E. 40% of (C. Total Not Excluded) F. Lesser of 50 or (E) Passes 401(a)(26) Minimum Participation Test if (F) not greater than (D)

11 401(a)(4) Minimum Allocation Gateway Minimum Allocation Gateway -- A. Percentage of NHCEs benefiting primarily in the DB plan B. Highest HCE DB/DC Aggregate Allocation Rate 29.64% Minimum NHCE % C. Lowest NHCE DB/DC Aggregate Allocation Rate D. Average NHCE DB Equivalent Allocation Rate E. Lowest NHCE DB/DC Aggregate Allocation Rate (415(c) Comp) Passed - Highest HCE DB/DC Aggregate Allocation Rate Exceeds 25% and the Lowest NHCE Rate Is at Least 5% Plus 1% for Every 5% of Excess % 6.71% 0.71% 6.71% F. Average NHCE DB Equivalent Allocation Rate (415(c) Comp) 0.71% Ash, J Reg (a)(4)-9(b) for DC plans combined with DB plans allow 401(a)(4) cross testing (i.e. contributions are tested as equivalent benefits) if the combination: (1) is Primarily Defined Benefit in Nature (A. is more than 50%), Or (2) satisfies a Gateway Requirement. The Gateway is satisfied If : (a) B. is less than 15% And no more than 3 times C., (b) B. is 15% to 25% And C. is at least 5%, Or (c) B. exceeds 25% And C. is at least 5% plus 1% for each 5% increment (Or portion thereof) that B. exceeds 25%, Or (3) E. is 7.5% Or greater, Or (4) consists of Broadly Available Separate Plans.

12 401(a)(4) General Test (Rate Groups) Passed 401(a)(4) General Non-Discrimination Test A Rate Group passes if the Ratio Percent is 70% or more, or if the plan passes the Average Benefit Percentage Test and the Rate Group's Ratio Percentage is greater than or equal to the mid-point between the Safe and Unsafe Harbor Percentages. Average Benefit Percentage Test - Passed NHCE's Concentration Percent % Safe Harbor Percent % Mid-Point Unsafe Harbor Percent % 21.25% All Together Passed Method: Annual without Permitted Disparity Non-Highly Compensated Employees Highly Compensated Employees Norm MVAR Rate Number Greater Percent in Number Greater Percent in Ratio Group Rate or Equal Total this Group or Equal Total this Group Percent Pass/Fail Pass

13 401(a)(4) General Test (Rate Groups) All Together Passed Method: Annual without Permitted Disparity H C E Norm Rate MVAR Rate Group 1 > > Sam Zelkova Y Y Number of HCE's in group: Total number of HCE's: Percent of HCE's % Janie Ash * Taylor Birch Y Sally Cypress * Todd Filbert Y Susie Ironwood Y John Redbud * Number of NHCE's in group: Total number of NHCE's: Percent of NHCE's % Ratio percent of NHCE's/HCE's: 50%

14 Combined Participant Account Statement John. Redbud Employee Number: Date of Birth: Date of Employment: Date of Participation: 08/19/ /03/ /01/2008 SSN: Gender: Attained Age: Retirement Age: M Source of Funds Beginning Balance Contribution Gain/Loss Forfeitures Distributions & Adjustments Ending Balance Prof shr 100 Pooled 3,00 1,92 4,92 401(k) ADP Safe Harbor Nonelective 100 Pooled 1,92 1,92 Salary Reduction 100 Pooled 3,00 2,56 5,56 Matching 100 Pooled Cash Balance 100 Cash Balance 2, , Total: $6,30 $8, $ $ $ $15, Vest Pct Total Account Balance: $15, Total Vested Amount: $15,081.01

15 Combined Participant Account Statement Sam. Zelkova Employee Number: Date of Birth: Date of Employment: Date of Participation: 10/16/ /14/ /01/2008 SSN: Gender: Attained Age: Retirement Age: M Source of Funds Beginning Balance Contribution Gain/Loss Forfeitures Distributions & Adjustments Ending Balance Prof shr 100 Pooled 30,75 7,65 38,40 Salary Reduction 100 Pooled 22,50 23,00 45,50 Matching 100 Pooled 2,25 2,25 Cash Balance 100 Cash Balance 150,00 150,00 Total: $55,50 $180,65 $ $ $ $236,15 Vest Pct Total Account Balance: $236,15 Total Vested Amount: $236,15