Dougsbpc Posted August 21, 2013 Share Posted August 21, 2013 A floor-offset defined benefit plan will be terminated with excess assets. The plan is covered by PBGC so priority categories 1-6 must be followed. The allocation of excess will pass 401(a)4 on its own. Question: Must the excess allocation be provided before offset or after offset? For example, suppose a participant has PVAB of $10,000 prior to offset and an offset of $15,000 resulting in $0. Now he receives an excess allocation equal to $1,000. Is his distribution: A. $10,000 + $1,000 - $15,000 = $0 or B. $10,000 - $15,000 = $0, + $1,000 = $1,000 Thanks. Link to comment Share on other sites More sharing options...
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