Leaderboard

From the instructions for this line: The highlighted portion seems to describe your plan, so it might make sense to check "N/A" as described.

In general, the required contribution in a defined benefit plan is based on the difference between the market value of assets and the actuarial present value of accrued benefits, measured on the plan's valuation date. A significant decline in the market value of assets could result in an increase in the plan's required contribution (conversely, a sudden rise in the value of plan assets could result in a reduction in the maximum contribution, possibly to the dismay of an employer who was looking forward to a large tax deduction). The increase in the required contribution due to a drop in plan assets may not be dollar-for-dollar however, as the "funding shortfall" amount is amortized over a period of 15 years. This only speaks to the minimum required contribution under ERISA 303 / IRC 430. Plans may have a funding policy that directs the employer to contribute an amount larger than the required minimum. Cash balance plans may use an interest crediting rate based upon the actual rate of return of plan assets, which may even be negative (although the "preservation of capital" rule of 26 CFR 1.411(b)(5)-1(d)(2) prevents the interest credit rate from being negative on a cumulative basis). Proponents of these formulas claim that it ensures that plan liabilities will always be in line with assets; in other words, if the sponsor contributes the amount of the pay credits each year, then the assets will always equal the hypothetical account balances. This may be true, however it can be problematic for smaller plans, especially those that are tested together with a DC plan.

That an employer’s obligation to contribute to a multiemployer pension plan ends in circumstances not of the employer’s choosing is not by itself an excuse from withdrawal liability. Your client needs to lawyer-up, yesterday.

Allowed, yes. Advisable I'll leave that to others. As to where and how it is stored, it could be a Prohibited Transaction if not stored and held by a non-party in interest. Since gold bullion is not a "qualified asset" you may have higher bonding requirements and would not be able to file a Form 5500-SF.

Again, assuming this is participant directed, if the funds all came out of one TDF, and the participant does not change their investment mix for future deposits, every platform I have ever worked with the repayments would be back to the same TDF. I suppose there are situations where this might be different, but I do not think they would be common norms or industry standards. The entire payment, both principal and interest, is re-deposited into the participant's account, unless there is some admin fee applied to the payment before deposit or the loan is treated as a pooled investment which is no longer very common. Typically the loan accounting will take the prior outstanding balance, add interest to it from the last payment and then apply the payment to reduced the outstanding balance. Each loan system might be a little different in how they apply this but it's all going to be pretty close.