david rigby

We know what you mean, but you may wish to consider avoiding the word "kickback" in the future.

The method used by the IRS for the Schedule B (for DB plans) is: i = 2I/(A+B-I), where A = BOY value B = EOY value I = net investment return amount (not rate) = B-A-Contributions+Payments The result (i) is a rate/percent. This formula assumes all transactions occur in the middle of the period, so it may not be appropriate for all uses, especially if the transactions are "front-loaded" or "back-loaded" in the period. However, it usually provides a reasonable value, even for comparison purposes.

"Most" is usually not considered a statistic. Can you share what evidence you have to support this claim? Thanks.

So what? The Plan is terminating, and should not be held hostage to a missing participant. BTW, be sure you have done all you can to verify whether the participant is still alive.

How about an immediate annuity? Insurance companies are usually glad to sell them.

Don't forget about vesting, including a possible partial termination.

A partial termination is obvious from the facts stated. But why not freeze and/or terminate the plan? You can be sure the employees will be asking for a distribution of some kind, and won't want to wait until 2009.

... but the plan administrator should not ignore the possibility of fraud. In the words of Dr. House, "Everybody lies."

That may be too much generalization. No guarantee that this is up-to-date: http://www.prudential.com/media/managed/St...Withholding.pdf

Not quite. UC will be required in 2008 and beyond for purposes of determining minimum and maximum. This does not preclude any other method for other planning/budgeting purposes. This may be what myatt intended by his phrase "...continuing my current methodology as well for the client..." Sad to think that the excellent text books by Barnet Berin and Arthur W. Anderson will no longer get much use.

Is this a cash balance plan? (Not contradicting Mike, just asking.)

The 20% withholding applies to distributions that are eligible for rollover. RMD are not rollable. Here is the 2007 form W-4P: http://www.irs.gov/pub/irs-pdf/fw4p.pdf

In the Nov. 23 Federal Register, the IRS cancelled the hearing: http://a257.g.akamaitech.net/7/257/2422/01...df/E7-22893.pdf

Unfortunately, you are mistaken. IRA's, yes. Qualified plans, no.

Any chance this is phishing, and the letters are not really from the IRS?

If you amend, be careful that you don't create a discriminatory set of circumstances.

While you work on the "can" part of your questions, consider the "should". Will the sponsor experience another round of the same employees reducing or stopping the deduction (along with its extra paperwork, angry employees, etc)?

Data as of 30-NOV-07 Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.34 5.34 Aa 5.85 5.66 5.76 A 6.00 5.98 5.99 Baa 6.34 6.54 6.44 Avg 6.06 5.88 5.97 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 3.22 Medium-Term (5-10 yrs) 3.79 Long-Term (10+ yrs) 4.36

More discussion: http://lawprofessors.typepad.com/laborprof...l-comments.html

Agreed. I doubt the IRS would be very forgiving on this point.

Does this help? http://www.abanet.org/publiced/preview/bri...c07.shtml#06856

The AP benefit is determined by the QDRO, not by whether or not the plan continues. BTW, is there a QDRO, or is your question hypothetical?

You can use this to search for a CUSIP: http://activequote.fidelity.com/mmnet/SymLookup.phtml/

This refers only to the certification, not to the "valuation deadline".

By "reported", are you focusing solely on "shown on the Schedule B"? Or is this also a question about deduction? In general, a contribution cannot be made for X plan year before the plan year begins. If you have some amount not yet included on the B, is there any reason you cannot amend the 2006 B?