david rigby

Are we assuming that the IRC 412 minimum for the cash balance plan is something less than the 10.5%? Has there been an actual cash contribution to the CB plan, or just an "allocation"? If so, is any of it deposited in the following plan year? Do plan year and company fiscal year coincide?

Or read the excellent Q&A column here .

The 5310 is an IRS form. The IRS website has some statistical information, but neither your question nor that form number seems to be included. http://www.irs.gov/taxstats/content/0,,id=...d=97166,00.html Your reference to the PBGC implies you are inquiring about DB plans. The PBGC website has some statistical information, but it seems to be related primarily to "trusteed" plans. http://www.pbgc.gov/publications/databook/default.htm

As implied by QDROphile, there is a difference between a "former participant" and "an inactive participant".

See Q&A-2 from IRS Notice 89-52: "Q-2: What are the consequences of a late payment of a quarterly installment? A-2: Section 412(B)(5) requires that the funding standard account ("FSA") be charged with interest at the appropriate rate, consistent with the rate or rates of interest used under the plan to determine costs (the "applicable interest rate for the FSA"). However, if there is a late payment of a quarterly installment, a portion of the interest charged to the FSA is based on the rate required under section 412(m)(1). The amount of interest charged to the FSA attributable to the late amount is based on 175% of the Federal mid-term rate (as in effect under section 1274 for the first month of the plan year) or if greater, the otherwise applicable interest rate for the FSA. The interest is charged from the due date to the date the late amount is actually contributed (regardless of the date such contribution is deemed to have been contributed under section 412©(10)). However, with respect to the first quarterly installment for the 1989 plan year, the interest rate under section 412(m)(1)(A) (i.e., 175% of the Federal mid-term rate) will not apply until 30 days after the publication of this notice in the Internal Revenue Bulletin. Furthermore, for a nonmultiemployer defined benefit plan, if the aggregate amount of all underpayments of quarterly installments and other payments required under section 412 exceeds $1,000,000, a lien in favor of the plan may arise under section 412(n) on the property of the person who failed to make the payment to the plan.

As pointed out by mbozek, the correct revenue ruling should be 81-114, http://www.taxlinks.com/rulings/1981/revrul81-114.htm

Not likely. http://benefitslink.com/boards/index.php?showtopic=16430 In addition to that link, there may be other discussion threads on this point. Click on the Search button at the top of the page.

Probably should start by reviewing the plan document provisions related to payment of expenses, not just what the employer typically does.

1. Does the plan say anything about the timing of the contribution? 2. Sounds like negative earnings. Welcome to the 21st century.

I am saddened to see such phrases as "morality aside" and "putting aside the moral issue"? Morality is always relevant. True, there might be differences of opinion, but that does not negate the issue.

Does it matter? For example, if the projected benefit is the 415 limit (either one), it may not matter how you got there. Let's be reasonable out there.

Kirk's summary appears to be consistent with most similar prior discussions on these Message Boards. And has been suggested before, a consensus here is (or should be) just as good as statutory authority.

Nothing very obvious on the DOL/PWBA website. Perhaps you can go there and ask them that question. http://askpwba.dol.gov/

Not trying to read something sinister into the original question, but it seems so simple as to be surprising. I wonder if there is something else going on. For example, is someone trying to arrive at a particular answer? Is this a new plan?

Your reference to scanned forms is probably the Form 5500. As you state, the 5310 and instruction can be printed from the IRS website. Just fill it in. BTW, if he "insists on doing it himself", why is he asking your help?

I don't think this question should be concerned with any non-qualifed plan. The qualified plan is required to follow the terms of the plan, and applicable statute and regulations. Many non-qualifed plans merely define a target, offset by whatever the qualified plan provides. Thus, the non-qualifed plan is not required to mimic the qualified plan by including an actuarial increase post NRD.

Not quite all non-cash incentives are crap. For example, an extra week of vacation.

naked pizza party with cash.

Based on similar inquiries on these Message Boards, I'll bet there is an expectation that the condominium will be used by an employee/officer/owner. Uh oh. For example, http://benefitslink.com/boards/index.php?showtopic=7482 Take Kirk's advice.

In case you are not aware, you can look for those other discussion threads using the Search feature.

Link to that Rev. Ruling http://www.benefitslink.com/IRS/revrul2001-51.shtml

Just to be sure, what interest rate and mortality table is this based on?

I am certainly no expert, but is it not possible that a divorce award would give her X% of his income, including retirment income, and all of that would be part of alimony? If alimony, he would deduct it and she pays the tax. Is this plausible?

Thomas is great: http://thomas.loc.gov/cgi-bin/bdquery/z?d104:HR03448:|TOM:/bss/d104query.html|

It is possible that, when he takes a distribution from his plan (apparently a DC plan), then the money resides in his personal account(s). Perhaps that will automatically generate payment to her. Let's not forget to read the document.