Guest Smokin Posted April 26, 2011 Share Posted April 26, 2011 The anti-cutback regulations seem to permit the substitution of a single sum payout for a joint and survivor annuity benefit option if certain conditions are met (ie equivalent value, only for those not in pay status). Any thoughts? Link to comment Share on other sites More sharing options...
QDROphile Posted April 26, 2011 Share Posted April 26, 2011 Not for amounts accrued under a money purchase pension plan, including restricted transfers. Link to comment Share on other sites More sharing options...
Guest Smokin Posted April 27, 2011 Share Posted April 27, 2011 The anti-cutback regulations seem to permit the substitution of a single sum payout for a joint and survivor annuity benefit option if certain conditions are met (ie equivalent value, only for those not in pay status). Any thoughts? You're right which leads to the question, how does one differentiate a money purchase plan from a profit sharing plan (other than by designation in the plan document given that profit sharing plans no longer require profits Link to comment Share on other sites More sharing options...
QNPG Posted April 27, 2011 Share Posted April 27, 2011 The anti-cutback regulations seem to permit the substitution of a single sum payout for a joint and survivor annuity benefit option if certain conditions are met (ie equivalent value, only for those not in pay status). Any thoughts? You're right which leads to the question, how does one differentiate a money purchase plan from a profit sharing plan (other than by designation in the plan document given that profit sharing plans no longer require profits Not sure if this is the obvious answer, but money purchase pension plans have a required contribution and are subject to Code Section 412 (minimum funding requirements). Profit sharing plans are not. "Great thoughts reduced to practice become great acts." William Hazlitt CPC, QPA, QKA, ERPA, APA Link to comment Share on other sites More sharing options...
Tom Poje Posted April 27, 2011 Share Posted April 27, 2011 the other place to check in the document is the distribution section. money purchase plans have to have an option for J and S Link to comment Share on other sites More sharing options...
ESOP Guy Posted April 27, 2011 Share Posted April 27, 2011 One needs to look to see if the plan says it is a MP plan. A PS plan can have required contributions, and a J&S distribution section—even normal form. Ok, very rare to see either one, but the mere existence of those features does not make a plan a MP plan. Link to comment Share on other sites More sharing options...
QNPG Posted April 27, 2011 Share Posted April 27, 2011 One needs to look to see if the plan says it is a MP plan. A PS plan can have required contributions, and a J&S distribution section—even normal form. Ok, very rare to see either one, but the mere existence of those features does not make a plan a MP plan. I would hope that the supporting trust document would make some reference to the minimum funding requirements of Code Section 412 at some point in the allocations and contributions section. I guess I was looking at it from that perspective. A plan name doesn't necessarily designate a plan a certain type of plan either. I've seen many odd names which had no bearing on the type of plan and required contributions included. "Great thoughts reduced to practice become great acts." William Hazlitt CPC, QPA, QKA, ERPA, APA Link to comment Share on other sites More sharing options...
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