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The penalties may be imposed on either the Plan Administrator or the Employer. (Usually one and the same for small plans, but not always). You can strike fear into him by quoting the penalty amount. And don't forget that the IRS can impose penalties as well. Also, was the plan amended as required (or restated) for the termination? Yet another landmine. Probably goes without saying that you should get paid up front before doing any work... Note the following from the DOL FAQ's on the DFVCP program: Q15. Can plan assets be used to pay the civil penalties assessed under ERISA § 502(c)(2)? No. The plan administrator is personally liable for the payment of civil penalties assessed under ERISA § 502(c)(2). Civil penalties, including penalties paid under the DFVCP, cannot be paid from the assets of an employee benefit plan. Willful failure to file can result in CRIMINAL penalties on top of all the other fun. I'll bet you can scare him sufficiently, but if not, tell him to enjoy bankruptcy and possible criminal charges. Playing Russian Roulette with the DOL is an unrewarding form of entertainment. (I know I'm preaching to the choir on this.)

Leaving aside church plans and governmental plans, an annuity under or from an individual-account (defined-contribution) retirement plan—whether a qualified joint and survivor annuity, qualified optional survivor annuity, qualified preretirement survivor annuity, or something else—is what results from using the distributee’s account balance (or the portion of it the distributee uses to get an annuity). A typical individual-account plan does not provide a benefit subsidized by the employer, or that invades others’ individual accounts.

The CB plan has an actuarial equivalence definition to determine the monthly benefit. If the plan writes it own monthly checks, there ya go. Otherwise, an outside insurer would charge its own proprietary amount to make those monthly payments. (Higher or lower than the theoretical balance.)

Hi This was discussed before as I posed the same question, cannot remember when, you will need to research. It is prior to August 2021 as I had the client file 5330 prior to 7/31 deadline. Hopefully you have a 5558 extension. The 401k gurus out there said the exemption for HCE/owner does not apply. If you are late to deposit, you will need to provide lost earnings, no matter who it is.

Agree with well-stated thoughts above. Like most things, there is a place, however limited, for the product. I have thought that it basically protects the recipient from his/her own investment inexperience/ignorance/inertia in some cases. 20 years ago we market-priced annuity products quite often for DB plans that were terminating---but I've never in 45 years of consulting seen a DC plan participant ask for it.

Impossible. The rationale is the mutual fund expense is intrinsic to the investment itself. IT's a cost of operting the "company" that you are investing in. Even though it is not the same, it is tantamount to reimbursing a participant who invests in IBM for the rent IBM paid on its real estate. I know it's a crazy analogy but it is spot on. You are investing a "business" that is in the business of investing money and one of the expenses of that business is to pay a fund manager. Anything you do in this regard would be an employer contribution, and with it goes everything that applies to employer contributions (document provisions, testing, 415 limits, etc). In other words, forgettaboutit!