Michael Burkow

One of our client’s is a doctor who sponsors a DB Plan for his medical practice. The plan is not terminating and is not covered by the PBGC. We are in the process of cashing out several terminated participants. One of these former employees has a benefit worth much more than $7,000. She is married and has received her distribution election forms. However, she is not cooperating and will not return her forms. In accordance with statute and with the plan document, the default form of benefit is a joint and survivor annuity. We have checked with several insurance companies, all of whom offer the desired annuity. However, every insurance company wants a signature from the participant. This is a catch 22 because this participant is not cooperating. ⦁ Does anyone know of an insurance company that will provide an annuity for the benefit of a terminated participant without the signature of that participant? ⦁ I have heard that the PBGC now permits limited use of their Missing Participant Program for plans that are not covered by the PBGC. This plan is not covered by the PBGC and this participant is not missing. Does anyone have information or experience using the PBGC Missing Participant Program for this type of situation? Thank you. Michael P. Burkow, EA 401k America, Inc. (909) 591-1724 X. 418 michael@401kamerica.com

Thank you all for your input. The majority owner has had a 77% stake for many years. His 2022 accrued benefit is 12% of average compensation. His compensations have been in excess of $400,000 per year for many years. FYI, I plan to calculate his RMD options using a start date of 1/31/2024. That will give everyone involved adequate time to do what needs to be done.

A new DB Plan is effective 1/1/2022 and is adopted 7/6/2023. No prior qualified plans. 63 participants. The majority owner is age 80, works full time, and is fully vested. His normal retirement age is age 84 (the 5th anniversary of his 1/1/2022 entry date.) When is the owner’s required beginning date for his first RMD? Thank you in advance for your input. Michael P. Burkow, EA Available Monday through Thursday 401k America, Inc. (909) 591-1724 X. 418 michael@401kamerica.com