david rigby

Seems likely the IRS will treat this as a compensation program, rather than a qualified plan. Thus, they will expect amount to be subject to FICA tax and not eligible for rollover.

Do we know that or just assume it?

If the individual CB accounts receive an "interest accrual" based on the investment return of the funds chosen by each participant, would that not foul-up "definitely determinable"?

Generally, the plan should define the conditions. For example, will it be offered only to those under 62, or those under 65? IMHO, this option is never cost-neutral to the plan. For that reason, I recommend against including it.

I'll let the attorneys comment on duty, but.... - it might not be an error. - you work for the plan, right?

Do you mean participant? or alternate payee?1. If the QDRO states one form of distribution (which is permitted by the plan), but a different form is used, how is that "support"? 2. Does the Plan have its own ERISA counsel? It should.

Is this "voluntary contributions"? If so, isn't that accounted for as if it were a separate DC plan? (In 25+ years, I've never seen voluntary contributions; I could be wrong.)

Facts are few and far between. More specific? (Please turn off CapsLock key.)

Where is the duly adopted resolution to terminate?

Someone in my office got an advance copy today. 390 pages!

Not much chance of that!

This may be an issue of deciding which is worse. IMHO, the worse alterntive is always having to prove a distribution was made when the ex-EE gets the letter from the SSA. So.... I suggest put them on the SSA now, and use the D code as soon as you are able.

Andy, possibly an ABCD issue as well?

File the 5330 as soon as possible. The 10% cannot be waived, and you probably cannot "pre-pay" any interest and/or penalty. If there is any possibility to "advance" some other contributions (made for a later plan year), that is worthy of consideration. You cannot change the funding method on the amended Schedule B, but you can consider whether any assumptions should be changed.

It is difficult to see how IRC 412 would apply, after reading 412(h).

Several prior discussion threads on this topic. You may wish to try the Search feature. A keyword such as "severance" may help.

Blinky is correct about the "letter of the law". However, that does not mean it is better to terminate; it might be better to freeze the DB plan; we don't know all the facts. It is usually best to have all facts on the table when making plan design decisions.

March 30, 2007 Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.43 5.43 Aa 5.80 5.83 5.82 A 5.97 6.00 5.99 Baa 6.25 6.54 6.40 Avg 6.01 5.95 5.98 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 4.50 Medium-Term (5-10 yrs) 4.60 Long-Term (10+ yrs) 4.87

Report them on a Schedule SSA (don't worry about whether they have already been reported).

Surely this was discussed at the Enrolled Actuaries meeting, earlier this week. Any attendees able to provide feedback?

The original proposed solution ignores any possible FICA tax.

- "2006" should refer to a fiscal year beginning in 2006, not (necessarily) ending in 2006. - See Q&A5 of IRS Notice 2007-28 for discussion about plan amendments in the last 2 years.

I read it slightly differently. - First, note the phrase in A12 "... four safe harbor rules..." Thus, there may be other methods (although I'm not sure what). - Second, it appears Blinky is referring to the first sentence that begins "Another approach..." I agree that a literal reading refers to the entire DC account balance; but that implies that "defined benefit minmum" (in the same sentence) refers to the cumulative DB minimum, rather than the 2% as Blinky states. I skimmed the GrayBook, and found nothing on point.

Hmmm. IMHO, resubmitting an original filing is about the same as submitting an amended filing, and neither will be successful. If it were me, I would re-list the same D's from 2001 on the next SSA, ignoring the possible duplication. BTW, since mergers are involved, is it possible that a changed EIN is the "culprit"?

Is the ADP test passed?