Defined Contribution Plans Volume 1:
Plan Qualification and Compliance Basics Errata

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Page 1-43
Example 1-4, line 9
"forfeited based on teh three-year cliff schedule, the ABC Plan has caused an"

Page 4-14
Compensation Test , last paragraph
“When the dollar amount used for the compensation test is increased for a calendar year, it applies to the compensation for lookback years that begin in that calendar year. For example, the compensation amount increased to $100,000 effective January 1, 2006. The increased amount applies to lookback years that begin in 2006. That means that the increase generally has no effect until plan years beginning in 2007. The IRS confirmed this interpretation in a general information letter to Watson Wyatt.”

Page 4-15
Example 4-24
"A plan has a plan year that ends December 31. For the plan year starting January 1, 2007, the plan must look at compensation for 2006 to see who satisfies the compensation test. An employee’s 2006 compensation must exceed $100,000 to satisfy the compensation test (the dollar amount in effect for 2006).

Page 4-16
Example 4-26, last line
“$100,000 amount is used because the lookback year is calendar year 2007.“

Page 4-19
Example 4-28, last line on this page
“group election for the 2007 plan year. Whether the 79 employees described above are”

Page 4-28
Example 4-36, last paragraph
“(2) Compensation test. The HCEs under the compensation test are the employees whose compensation for the lookback year (i.e., January 1 to December 31, 2007) exceeds $100,000, subject to the top-paid group election, if elected. No proration is necessary because the lookback year is a 12-month measuring period.

Page 6-27
Example 6-21, last line
“coverage issue under IRC §410(b).”

Page 7-62
Sample Test Question 1, last bullet
"The 2007 contribution totals $40,000."

Page 8-26
Example 8-27, line 10
"defined benefit contribution of $175,000 plus 6 percent of compensation ($48,000) is"

Page 9-7
Example 9-1, line 13
“because the 100 percent vesting does not occur until five years of service.  Therefore,"

Page 9-13
Example 9-8, line 8
“value of the vested portion of Reese's account is $10,395. This total represents the entire"

Page 9-32
Example 9-34, line 3
“calendar year. For 2005, Maggie is credited with 1,100 hours of service and her fifth year of"

Page 10-39
Example 10-31, title
“NOTICE OF AMENDMENT FOR A LARGE PLAN."

Page 11-31
First paragraph, line 2
“2006 Form 5500 by July 31, 2007. If the employer files Form 5558 by July 31, 2007,"