david rigby

I have no idea if this is correct. My software seems to allow for this, but does not provide enough information to check it (that is, no q's at projection). I get a 100%J&S (60M, 57F) value of 14.551313. For reference, my male life annuity at 60 is 11.95511.

Not enough information. What advice have you already recieved from legal counsel?

How different are these? But I digress. From numerous discussions on these Message Boards, it appears that the determination of controlled group or affiliated service group is often incorrectly diagnosed. So be careful.

Hmmm. I'm not an accountant, but I would be nervous about a CPA who suggests an incorrect tax filing can be fixed in this way.

ERISA 204(g) is analogous to IRC 411(d)(6). My read of 204(h) is that is unrelated to the vesting schedule. There are other issues to respect when the vesting schedule is changed under IRC 411(a)(10). Notice is possible, but not required. See Reg. 1.411(a)-8T(b)(1). http://www.access.gpo.gov/nara/cfr/cfrhtml...26cfrv5_00.html

Always amusing when an individual wants to do business with a "friend", often resulting in higher administrative costs than the economy of scale available to the Plan.

To what notice are you referring?

mbozek's comment about 4021(b)(9) is valid. There is ambiguity in the statute. Equally valid is anybody's experience with it. I wish Blinky had said that first.

Good advice. The counsel will also advise that, under some circumstances, an owner may be able to waive a portion of benefit upon plan termination, in order to "wipe out" the underfunding. Since this is a PBGC rule, the question about PBGC coverage must come first.

I found nothing in the Gray Book.

Not my understanding. Can you explain?

Duh! The very essence of adverse selection.

I see nothing in IRC 423 http://www.fourmilab.ch/ustax/www/t26-A-1-D-II-423.html or the regs http://www.access.gpo.gov/nara/cfr/cfrhtml...26cfrv5_00.html which permits different eligibility for different employees, other than section 423( b)(4). No mention of collective bargaining. Notice subsection (5) requires the same “rights and privileges” for all employees who are “granted such options”.

Or put another way, even if the nephew portion/transaction is not a problem, the other 5/6 was a problem from the very beginning.

http://www.irs.gov/pub/irs-pdf/p502.pdf

http://www.benefitslink.com/boards/index.php?showtopic=7759

Similar, perhaps identical, language is included on page 228 of the Seventh Edition of the same book (1992).

Asusming you are the plan sponsor, your duty is to the plan, and to ensure that the day-to-day administrative functions are performed according to the terms of the plan, and the requirements of the law. I'm not an attorney, but it seems that if you have reasonable expectation that a participant may commit fraud, it is appropriate that the plan sponsor "do the right thing". The plan's ERISA counsel will guide you.

But if you can adjust the next wire transfer easily, that might also be an acceptable solution. (Might depend on when that next transfer is.) Written documentation of your actions is advisable.

What happened to the voluntary contributions while in the DB plan? Tracked with individual accounts? Credited with interest? If so, how was that determined? BTW, how long did this feature exist? What was the pattern of usage? HCE’s only?

Probably some similar discussion in earlier threads. Might also help to refer to tax treaty. http://www.irs.gov/pub/irs-trty/

ERISA section 403 is 29 CFR section 1103. http://www4.law.cornell.edu/uscode/29/1103.html (No guarantee that this site is up to date.)

Some prior discussion: http://www.benefitslink.com/boards/index.p...t=0entry78262

Having spousal consent requirements would take the teeth out of the"requirement" now wouldn't it? The MRD is not eligible for rollover. What do you mean "is not taking his/her MRD"? The plan does not have to request the participant's permission. The term "required" seems to fill the same role as a "force-out".

Look for the reg here: http://www.access.gpo.gov/nara/cfr/cfrhtml...26cfrv5_00.html