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Earl

Ton of over funding - Take over plan

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I was asked to review a single participant DB plan for a 68 year old.  He has $4,500,000 in the plan.

He was planning to retire so a transfer to a PS Plan doesn't really help, even if he works till he drops.

After you tell him to get his benefit out of the plan and put his wife on payroll for as much compensation as the CPA will allow, what can you do?

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Does he have a business that can be sold to a buyer with an underfunded DB plan?

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Thank you for your reply.  He is an internist.  Don't know if that means there is something to sell but doesn't really matter as he would be trying to see the DB Plan.

I suggested trying to merge with someone about 50.  The "Partnership" could takeover sponsorship of the Plan and he could see if he could get x cents on the dollar outside the plan.  The excess would about fully fund a DB plan for someone in lower 50s I think.

 Just searching for any ideas others may have.

Thanks again

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Does he have any interest in adopting a seasoned pension administrator?! (hee hee).

Sorry I know this isn't helpful to you in the least but I couldn;t resist!!

 

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Roasted garlic? 

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We have an older owner with a wife who is 25 years younger with a DBP that is well over funded on a lump sum basis but, if I recall correctly, is either fully funded or slightly under funded on a 100% fully subsidized/unreduced  J&S basis. The liability would be even greater if they went to purchase such an annuity from an insurer. So maybe something like that is a possibility?

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I would really appreciate our communities actuaries' analysis and citations around why a 401(h) medical account could not be used to purchase single premium long term care.

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