Ken Davis Posted January 31, 2003 Report Share Posted January 31, 2003 If a state teachers' retirement system offers an enhanced benefit in exchange for a voluntary contribution, but the years of creditable service are not changed, will 415(n) apply? For example, a person with 25 years service will normally receive a retirement benefit equal to 50% of compensation, but may increase the percentage to 60% with a voluntary lump-sum payment to TRS. If 415(n) doesn't apply, does that mean the voluntary contribution will have to meet the DC plan limits of the lesser of $40K or 100% of compensation? If 415(n) doesn't apply, does that mean that trustee-to-trustee transfers from 403(B) and 457(B) accounts may not be used to make the payment? Thanks in advance for any replies. Ken Davis Univ. of South Alabama Link to comment Share on other sites More sharing options...
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