david rigby

Hyperlinked version: http://benefitslink.com/IRS/revproc2003-44.shtml Attaboy Dave!

Uh, more information please. Or excuse my ignorance. The actuary should value the actual terms of the plan document, within reason for trivial items. Does the plan include a cola? BTW, how many participants in this plan?

See page 5 (table at the bottom) of the Winter 2002 edition of The Enrolled Actuaries Report. http://www.actuary.org/ear/pdf/winter_2002.pdf

Possibly an easier way to begin this "hunt for information" is to obtain and read a copy of the Summary Plan Description. The SPD should be written in non-legal language and should provide some (but not necessarily all) information related to this question. Keep in mind that many (perhaps most) DB plans are designed to pay a benefit at retirement age, and payment prior to that time might be restricted to "small" benefits. Also note that the plan may have, but is not required to have, a lump sum option.

Would any existing loan already include an agreement between the parties on how it is repaid? It seems unlikely that one party can unilaterally change that agreement.

Disagree. I believe the equation of balance must always apply, and balance. (The only exception would be where an aggregate funding method is being used and there is no UAL.)

Typically, no. But the terms of the plan will govern this. Employee contributions to a DB plan are very rare. Is this plan sponsored by a governmental unit?

Accounting policy by "word of mouth" !

One hopes that the plan already contains the appropriate language for T-H minimums. An allocation of 1.2% likely will be a problem, especially if it is not an HCE. However, if there is another plan, the TH minimum can be "co-ordinated" and may be OK. One hopes that the actual allocation adhered to the plan provisions. If not, expect problems.

Congress giveth, and Congress taketh away. At least for now, a qualifed plan provides certain protection not available to an IRA.

I read a different emphasis in the question: 415 phase-in, although that probably is not relevant. My read of the facts leads me to answer NO to the original question: awarding any past service for benefit purposes does not "award" past participating service.

Can it? Yes. Is that sufficient? No. See DOL Reg. http://www.dol.gov/dol/allcfr/ebsa/Title_2...520.104b-10.htm "...to each participant..."

Perhaps it was out of jealousy of a better university just a few miles away.

This may not be "all inclusive" in analysis, but if a plan can be converted prior to a merger, then it can be converted without a merger.

Not sure I agree. I think you can convert a DB to DC, or vice versa. See 1.414(l)-1. http://www.access.gpo.gov/nara/cfr/cfrhtml...26cfrv5_00.html Subsection (lower case L) reads “In the case of a merger of a defined benefit plan with a defined contribution plan, one of the plans before the merger should be converted into the other type of plan…”

Be careful about a "sham termination and rehire". Frowned upon. Of course, the plan could be amended to change the definition of NRA to include (for example) age 62 with 30 years of service.

Oh boy. In order to be compliant, all I have to do is declare it?

The alternative of bringing children into the business would seem to head in the direction of passing on the excess, assuming they can earn a meaningful benefit. If they children aren't interested, I can be adopted.

What is meant by "...plan has a Puerto Rican employee ..."? Where is/was the EE located? Paid in US dollars? Above answers are correct about ERISA pre-emption.

The overwhelming majority of plans (pension, profit-sharing, 401k, etc) use a "5-year cliff" vesting schedule: 100% at 5 years of service, 0% prior to that. EGTRRA changed the requirement, prospectively, that matching contributions in a 401(k) plan must reach 100% vesting in no more than 3 years, but that change does not apply to other plans.

http://benefitslink.com/IRS/revproc2003-44.shtml

Numerous discussions on these Message Boards that indicate "No". IRS reasoning is that only "employees" are entitled to make deferrals under 401(k). For clarity and documentation, your best bet is to use the Search feature.

Well, no one shared experience so I will share how I completed the Schedule B: - All items on pages 1, 2, 3, and 5 reflect the surviving plan without regard to the merger. - All entries on page 4 reflect the plan merger, using my understanding of the Rev.Proc. section mentioned above. To produce these entries, I use 12 months for the surviving plan, plus 6 months (that is, between merger date and EOY) of the non-surviving plan. In all cases, the results of these two are added to develop the Schedule B entries. (Read the examples in section 4.07 carefully.) - The Schedule of Active Participants (Line 8c) reflects only the surviving plan. Of course, if you have a different perspective and/or experience, I am willing to learn.

Interesting. Since you say "...may be able to find the funds...", why not just ignore the possibility of rescinding the waiver application? If the sponsor has the cash available (on a timely basis), then make the contribution; the waiver will still be amortized, but you get a credit balance. All the administrative expense has already been incurred anyway. My guess is that a rescinded waiver would not count against your 3-times limit, but maybe someone else has seen this happen. (I doubt the IRS will refund the user fee.)

I think you have a 401(a)(4) issue if you do a "staggered" freeze.