Cloudy Posted May 5, 2017 Share Posted May 5, 2017 Traditional DB formula of [52.5% (AMC) + 12.5% (AMC-CC)] x Part/25, fractional accrual Partic. / Total Partic. Does this formula satisfy the requirements for a designed based safe harbor? Link to comment Share on other sites More sharing options...
My 2 cents Posted May 5, 2017 Share Posted May 5, 2017 It's a Friday afternoon (with all that implies concerning the acuity of my thought processes), but I can't think why it wouldn't be. Always check with your actuary first! Link to comment Share on other sites More sharing options...
Cloudy Posted May 5, 2017 Author Share Posted May 5, 2017 I am wondering whether 35 years is required because of the excess piece. Link to comment Share on other sites More sharing options...
My 2 cents Posted May 5, 2017 Share Posted May 5, 2017 While it is later still on a Friday afternoon, I don't think that you have to go with 35 years for the prorata step-rate formula to be safe harbor. I still think the formula you originally described ought to be a safe-harbor formula under the 401(a)(4) regulations for defined benefit plans. Always check with your actuary first! Link to comment Share on other sites More sharing options...
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