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248 - Retirement Planning If the ADP of NHCEs is less than 2 percent, HCEs may defer up to two times If the ADP of NHCEs is 2 percent to 8 percent, HCEs may defer an additional 2 percent If the ADP of NHCEs is more than 8 percent, HCEs may defer up to 125 percent (3) Actual contribution percentage (ACP) test (a) Applies to employer matching contributions and after-tax employee contributions under all quali ed DCP and employee contributions under a DBP, to the extent they are allocated to a separate account for each individual participant (b) The ACP test is similar to the ADP test E Highly compensated To determine whether an employee is a highly compensated active employee for the determination year, two calculations are required: (1) look-back year and (2) determination year (1) In the look-back year: (a) The employee owns 5 percent of the employer, or (b) Received compensation from the employer greater than $90,000 (as indexed in 2003); and, if the employer elects, is among the top-paid group of employees (toppaid 20 percent of employees ranked by compensation) (c) If the employer elects to use membership in the top-paid group, then the employer can choose to include fewer employees in the HCE group, even if those employees make more than $90,000 For example, if 35 percent of the employees earn more than $90,000 (as adjusted), including 5 percent owners, the top-paid group election will limit the selection of HCE group to 20 percent of employees (2) In the determination year: (1) The employee owns 5 percent of the employer only (3) Important: The employee is an HCE if he or she meets either the look-back year or determination year conditions (4) Example: Assume an employer elects to use membership in the top-paid group Jim, who started employment in 2001, has earned the following salaries each year: Year 2001 2002 2003 Compensation $100,000 $105,000 $110,000 Status Excluded Excluded Excluded.



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One distinction between normal synchronous communication and asynchronous messaging is that the former is associated with the client/server model, whereas the latter is typically associated with the peer-to-peer model In client/server systems, one party requests information and one party provides it In peer-to-peer systems, both parties produce and consume information Still as I said earlier, the difference between these two approaches is smaller than it sounds Even under a messaging scheme, there's going to be a provider and a consumer The difference is that the consumer doesn't have to request the information in order to get it; rather, the information is subscribed to so that it can be received if and when it's published by the provider





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In the example at right, masking is being applied to keep the sharpening from being applied to the sky (see inset). These areas of smooth tones do not require sharpening; doing so may well introduce lots of noise. Masking provides the ability to restrict the sharpening to only the edges in the image that meet the minimum contrast level defined by the Masking slider. Zoom in to various levels to check for sharpness in key areas and consider whether some parts of the image need more sharpening than others. The suggested values Figure 4-62 are based on raw capture; if you shoot jpg t hen some sharpening is already applied in the camera, and the optimal settings would be different. If you do as much of your work as possible in Lightroom, you may find that you never need to go into Photoshop, especially for sharpening. Though there may be special cases and images that benefit from the pixel-level editing that Photoshop provides, Lightroom s sharpening options, when properly used, may be all you need. When to turn off Lightroom s sharpening altogether If you re planning to do all of your sharpening in other software, set the Amount to 0 to turn off sharpening in Lightroom. (And if you re Exporting files for that purpose, make sure you don t apply any sharpening there, either; see 5.)

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Now that we've clarified the two basic forms of communication between systems, how do we decide which is the best one to use Although each has some performance and scalability tradeoffs, the most important factor obviously has to do with the business requirements of a given situation Certainly, interactive Web applications need to operate in a mostly synchronous manner They have many processes (transferring money, purchasing a product, etc) where synchronous communication is simply mandatory because a user needs to be assured that the operation just requested has been performed However, there may be opportunities to solve problems asynchronously as well Let's look at some of these tradeoffs in the context of the challenges we outlined earlier Connection Management Synchronous communication brings with it a difficult connection management issue Interactive Web applications must be able to maintain a large number of available connections at all times to service high demand and to handle longer usage times per connection For example, the HTTP 11 persistent connections feature improves performance for a series of HTTP exchanges, but it also frees connections at a lower rate than nonpersistent connections In contrast, asynchronous communication has to worry only about providing enough connections to ensure highly available queuing These connections are typically short-lived and don't sit idle during periods of client think time, as a persistent connection might Caching and Data Locality

Jim has earned more than $90,000 each year, but has been excluded from the HCE group because he is not a 5 percent owner or a member of the top-paid group Now assume the employer does not elect to use membership in the top-paid group for 2002 For 2003, Jim is an HCE because for the look-back years he earned more than $90,000 F Controlled group IRS rules prevent employers from setting up multiple businesses whereby one business entity provides retirement plan bene ts to key employees and another business entity that employs common-law workers provides zero bene ts When a control group relationship exists, all employees of the group are considered employees of a single employer for the purpose of satisfying rules that govern QRP A control group exists when there are:

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TABLE 26-3

Topic 76: Quali ed Plan Rules and Options - 249 (1) Parent-subsidiary relationships There is 80 percent common ownership by one or more companies in the group and the parent owns 80 percent of at least one company Consider the following example: Example: Corporation A owns 80 percent of Corporations B and C, and Corporations B and C each own 40 percent of Corporation D Therefore, Corporation D is part of the parent-subsidiary controlled group because it is 80 percent owned by rms within the group (2) Brother-sister relationships (1) Five or fewer people own 80 percent or more of the stock value and (2) the same ve or fewer people own more than 50 percent of the stock or voting power of each corporation, taking into account the ownership of each person only to the extent that such ownership is identical with respect to each business (ie, identical ownership test) Example: ABC Corporation and XYZ Corporation are owned by four unrelated shareholders Shareholder Chris Mark Emma Stan TOTAL Percentage of Ownership ABC Corporation XYZ Corporation 80% 20% 10 50 5 15 5 15 100% 100%

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