david rigby

Better than Jim Holland's opinion is the statute: IRC 436(h)(2) includes "...before the first day of the 10th month..."

Hey, what's up with that?

Generally, the maximum deductible is the Target NC, plus 150% of the Target Liability, plus another "cushion" amount for future salaries, minus the assets. Often, the difference between the minimum and maximum is quite large, even for well-funded plans. But, of course, you should have this discussion with the plan's actuary.

I agree with mjb's suggestion as a plausible explanation.

From page 23 of the 5500 instructions: "Schedule B – Statement by Enrolled Actuary.” A stamped or machine produced signature is not acceptable.

... beyond all recognition....

Did she accrue a benefit during the PY? Does the actuarial valuation show a contribution is needed under IRC 412? (P.S. It's a DB plan, not a DC plan.)

Just my opinion, but this does not sound like an expense related to plan administration. But I've been wrong before. Perhaps the PA (and plan's ERISA counsel) can document the process(es) and uses of this webcalculator in sufficient detail to allocate a portion (less than 100%) to plan administration?

I'm not aware of an exception to the spousal signoff rules for plans like the Teamsters plan, and the years in question should not be relevant. Probably reinforces the advice from QDROphile to get legal advice from someone who has (much) more than a passing knowledge of ERISA and QDRO's.

I don't think this is correct, at least as far as the pension plan. Is it possible your pension plan is sponsored by a governmental agency or church (which may be exempt from spousal permission requirements)?

It may be an obvious statement, but the postings in this Message Forum could provide you some useful background. Also, this summary from the DOL may provide soem assistance: http://www.dol.gov/ebsa/Publications/qdros.html

BTW, don't forget that a plan that goes in and out of Top Heavy status is considered to have a change of vesting schedule (assuming the plan defines two different vesting schedules for this purpose).

http://www.irs.gov/newsroom/article/0,,id=108362,00.html

No expert I, but that coverage is limited, as stated in the linked item: In my limited understanding, it appears that some (not necessarily all) of these "securities" are exempt from SEC oversight/regulation. However, they resemble insurance products, but no one (insurance regulators, auditors, etc) required any reserving.

Perhaps I misunderstand the facts. It seems to me that, if you are purchasing an annuity, then you no longer care about EE and/or spouse signoff (although perhaps the insurance company cares); the only course of action is to purchase a QJSA. Perhaps you could give the EE a choice of other J&S options in the plan, but I'm not sure that is necessary. The other possible action is to "threaten" to do this, as a trigger to get the EE/spouse to signoff on the lump sum. BTW, I assume the plan is purchasing the annuity for $x per month, no matter what it costs, rather than taking the $35K and purchasing whatever annuity it will buy.

Isn't that a description of "credit default swaps"? Unregulated, unaudited and unsecured. Somebody was asleep at the wheel.

The IRS considers a COLA to be part of the accrued benefit. For example, see GrayBook Q&A 2006-32 and 96-39. BTW, so does the PBGC. See BlueBook Q&A 98-2. Also, see recent court case: Gary Williams v. Rohm and Haas Pension Plan Seventh Circuit, decided 8/14/2007 Case. No. 06-2555

Hmmmm. I wonder if this sponsor will be looking for another auditor.

Sloppy? Malpractice? You decide. BTW, has anyone discussed this with the actuary to see if the "excess" really is an excess? The PA should probably get its ERISA attorney to review this, then take the attorney's advice. Just a thought.

Several prior discussion threads on this topic. Recommended reading. Try the Search feature with "illegal alien".

Does the plan language require/permit a contribution only to the extent it is deductible? BTW, don't forget IRC 4972

Doesn't the fourth month begin September 30, 2008?

Even if only one plan, you may be able to split it into two plans ("spinoff) and then terminate "plan A". I doubt that would be advisable, but it may be possible.

Got an employer that sponsors a 401(k) plan? If so, use it.

I vote for today. "spirit of the law".