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With 401(k)s, there have been many new laws that required the plan document be amended. And the whole document needs to be restated every 5 or 6 years. When was the last time an amendment or restatement was required of a SEP or SARSEP document?

Fabulous coinage: rocket surgery. Now it is in the public domain and I intend to use it.

Yeah, who advised you and what is their motivation/reasoning for such advice? It may be excellent, perfectly legitimate advice, or it may be someone who wants to generate a commission. Or someone who doesn't know what they are talking about. I make no judgment - just be cautious.

If he is already over age 59.5, it might very well be that his highest 35-year average earnings for purposes of determining his social security benefit has been established from prior wages. Each year is adjusted for inflation. If his earnings now would be higher than some of his prior earnings (adjusted for inflation), then Gburns may be correct. Otherwise, deferring would not impact his social security benefit. Best to run it through the calculator.

One way to post a link is to copy and paste with the little switch in the upper left hand corner of the "Reply to this topic" window switched up. Then switch it back down for all the deluxe word processing options.

Zoraster - "cash balance" or "traditional" are simply methods of determining the amount of benefit payable at some event. They have nothing to do with the benefit delivery. Cash balance plans don't have to pay lump sums, and traditional plans can offer forms of payment other than annuities. The big advantage of cash balance plans in the small plan market is the ability to control the cost of the benefit and to allocate the same "value" of benefits to people of different ages/compensation levels.

The OP stated that this was not an employee only issue, the coverage would be spouse and employee and that they were interested in reimbursing for the cost of this additional coverage, however much that might be. But, there is also the complication which would be caused if the spouse's coverage tiers did not include an "Employee and Spouse" but instead had "Family". How would the OP know how much to reimburse for their employee's portion? I think that the OP could get some guidance from the public sector plans.

Where does this stuff come from? That's creative, to say the least.

Where does this stuff come from?