david rigby

In general, the plan will define when a distribution is permissible. Tax laws and regulations will define how (and when) it is taxed. See IRS Publications 575 http://www.irs.gov/pub/irs-pdf/p575.pdf and 590 http://www.irs.gov/pub/irs-pdf/p590.pdf Before making a distribution, the employer is (probably) required to provide a special notice that gives an overview of how it will be taxed. You can get a headstart by ordering the above publications (1-800-tax-form).

It might be simpler to fix in the subsequent paycheck.

There are probably some unanswered questions here. This plan administrator should hire a competent pension actuary, who will know the right questions to ask. As luck would have it, many of us are contributors to these Message Boards. Another source of information, no surprise, is our friendly neighborhood webmaster, who has created http://www.benefitslink.com/yellowpages/actuary.shtml

Blinky, to be precise, the word is "sucks". Several prior uses, which we leave to the user for searching.

That is my interpretation, that the 412 minimum could be larger, but in such case, the Unfunded CL is even larger, making the former meaningless.

Section 101(b)(5) of PFEA is "(5) ELECTION TO DISREGARD MODIFICATION FOR DEDUCTION PURPOSES- Section 404(a)(1) of such Code is amended by adding at the end the following new subparagraph: `(F) ELECTION TO DISREGARD MODIFIED INTEREST RATE- An employer may elect to disregard subsections (b)(5)(B)(ii)(II) and (l)(7)©(i)(IV) of section 412 solely for purposes of determining the interest rate used in calculating the maximum amount of the deduction allowable under this paragraph.'." Some debate in our office about this. Some say it means only that the unfunded current liability (for purposes of 404) can be calculated using the "old rules". Others say that it also means you can recalulate the minimum solely for the purpose of determining whether it is larger than the (otherwise determined) maximum. Comments?

Why?

Most likely a distribution should not be made. However, the plan provisions are more important than my opinion. You don't say whether the EE actually requested a distribution. If not, then rehired, it is very unlikely the plan would permit such a distribution now.

Use this link to search. http://thomas.loc.gov/ Based on the current wording, I don't see any direct impact on DB plans. There might be some indirect impact.

Permissible? Fees are ususally set by competition and negotiation between the parties.

Try IRS Publication 590, available by calling 1-800-tax-form. I believe rollover rights extend to the spouse but not to other beneficiaries.

"Withholding notice"? Is anyone confusing garnishment with QDRO?

Not sure I understand the question. What numbers are you playing around with? How did you arrive at your estimate?

3.14 to 1. Obviously.

How about a violation of the plan terms?

Probably the individual will want advice from someone who should know, but I thought deductions from income were based on the deduction in the paycheck, not the amount of reimbursement. If the person is deducting an additional $1000 (or $700), perhaps a new "tax advisor" is needed.

Just imagine. An actuary who is a third sibling, and who has a pet llama !

You aren't taxed on it if it loses investment value either.

I thought "deductible" referred to the plan sponsor's tax year rather than the plan year. IRC section 4972. Ignoring that distinction, the answer to your question is probably Yes, but read the 4972 carefully, and references to 404. Also not sure what you mean by "carries them forward". Not sure if you are asking, but, if applicable, the 10% excise tax should only apply once, not carried over to subsequent year.

Collective bargaining agreements might include other provisions.

Have not done one of these in the last 3 years. Any new developments, regs, etc ?

Probably best to follow plan document. Sounds like the answer is Yes. This might be a minor point: Is it "5 breaks in service" or "more than 5 breaks in service"?

Now that we have gotten thru another Administrative Assistant's Day, it is clear that Hallmark needs another ocassion for selling cards. The obvious candidate must be Actuary's Day. I propose October 16 (when most of our 5500 filings are done). Any other suggestions? P.S. Some in my office think everyday is Actuary's Day. I don't understand.

My recollection is that the IRS has said Yes to this. Sorry, I cannot find the cite, but I think it was in the Gray Book. However, I suspect many actuaries may not do it that way, based on whether the change was material. Facts and circumstances for a particular sponsor will be relevant in that determination.

Maybe. I read the Q a bit differently. If you mean that the payperiod ended on March 29 (for example) but that is not paid until one week later, most likely the date on the paycheck is controlling.