Leaderboard

I agree with Bri as well. I think the entire rule change eliminated the need to account for anything else other that the balance at the time. If you have a balance of $5,000 and terminate employment as of February first and are entitled to a Safe Harbor Nonelective contribution of $100 at year end, does that right to a contribution now mean your accrued benefit is $5,100? This is a rhetorical question but point out the potentially endless number of scenarios you can enter when you attempt to use anything other than the balance as of the date. It would then require and different procedure other than a simple analysis of the balance on the date of distribution. I think the elimination of the rule in place years ago opened the door for you to simply administer the provision in the most simplistic method without having to perform the additional analysis of determining what the balance 'used to be' or 'will be'. The language in the plans that I've seen seems to be pretty consistent with this. I've yet to see language that suggest adjustments to the balance on the date. Good Luck!

I should have noted that participants rarely read the SPD, UNTIL they want a distribution. Then they instantly become ERISA lawyer wannabe's. A few employers do actually read them, but it is a very small percentage, as far as I can tell.

"I may not be a lawyer but I am assisting the Plan Administrator in this matter. If I advise the Plan Administrator to reject the DRO then, at the least, you will most likely need to file a formal claim for reconsideration. Hence, it is in your client's best interest for you to ratchet down the rhetoric and help me help your client."

I have exercised moderator discretion to remove the link, rather than remove the entire post or thread. The original poster may benefit by contributing to the message boards in the future, as long as posts stay away from self-serving intents. The user community is always open to sharing, and hopes the poster is willing to participate.

an 1800 distribution isn't going to mess up anyone's social security retirement benefit unless she has so much income it pushes her into a higher bracket where more of the benefit is taxed. don't violate plan terms - pay lump sum or pay nothing - she can roll to ira and make her own installments if necessary.