Leaderboard

You can test on whatever compensation that is allwoed int he testing section of your plan documetn. Oftentimes, it'll be any comp that fits 414(s)

Belgerath, I'm not sure what your take is on this. I see it saying the RMD must be satisfied but not before the transfer.

Sounds as if the filing would not technically be timely submitted.

Agreed. I think the mistake people make is assuming that target normal cost and funding target have anything to do with reality. Bad consulting will produce bad results and there is a lot of bad consulting out there, especially with the TPAs that use a "signature for hire" actuary. Assuming interest crediting rates are less than funding rates, the funding target is generally lower than the hypothetical cash balance. This produces a Minimum Required Contribution that is typically less than the amount necessary to keep the plan 100% funded based on actual account balances. Also, as the plan matures, the maximum deductible will generally be significantly more than the amount necessary to keep the plan 100% funded. We typically talk to our clients about "recommended" contributions that will keep the plan 100% funded. Getting that recommended number to fit within the minimum and maximum usually isn't a problem, but it certainly could be if rates move dramatically.