Jakyasar Posted June 12, 2020 Share Posted June 12, 2020 Looking into a DB plan. Owner, spouse and an employee. Owner is a financial advisor and has CLU, ChFC credentials. I just cannot locate where it says covered/not covered. I remember reading something about this being an issue a few years back. If you have any thoughts/references, would appreciate if you could share. Thank you Link to comment Share on other sites More sharing options...
Bill Presson Posted June 12, 2020 Share Posted June 12, 2020 This from Ms Ilene Ferenczy might be helpful: https://ferenczylaw.com/article-defined-benefit-plans-determining-professional-status-of-plan-sponsors-for-pbgc-coverage/ William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070 Link to comment Share on other sites More sharing options...
Jakyasar Posted June 12, 2020 Author Share Posted June 12, 2020 Thank you Bill Bill Presson 1 Link to comment Share on other sites More sharing options...
Jakyasar Posted June 13, 2020 Author Share Posted June 13, 2020 Hi all Read this, not 100% clear. I checked other resources as well. Looks like it can be however, PBGC may think otherwise so this is a situation where to apply to a determination under PBGC, agree? A question. Let's says PBGC provides an official reply stating not a professional and the client takes 25% deduction under the DC plan. Gets audited by the IRS and IRS says, it is a professional. Who prevails here as IRS may demand deductions to be adjusted? Thank you Link to comment Share on other sites More sharing options...
Effen Posted June 14, 2020 Share Posted June 14, 2020 Not sure how the IRS could make that argument. What authority would they use to support it? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice. Link to comment Share on other sites More sharing options...
Mike Preston Posted June 14, 2020 Share Posted June 14, 2020 6 hours ago, Effen said: Not sure how the IRS could make that argument. What authority would they use to support it? What he is trying to say is that you are being paranoid. Effen 1 Link to comment Share on other sites More sharing options...
Jakyasar Posted June 15, 2020 Author Share Posted June 15, 2020 May be, was just curious though, thank you Link to comment Share on other sites More sharing options...
CuseFan Posted June 15, 2020 Share Posted June 15, 2020 I would request PBGC make a determination. If PBGC says not professional services and plan is covered then the plan is PBGC covered regardless of what IRS might think. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
Jakyasar Posted June 15, 2020 Author Share Posted June 15, 2020 Agreed and thank you Link to comment Share on other sites More sharing options...
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