david rigby

No vote. Just an opinion.

... and the plan has to include the proper language. For example, if you want to pay the 50% J&S annuity, make sure the plan provisions include the proper (amended) definition(s) of actuarial equivalent.

You might also ask the auditor for an opinion. My observation is that auditors prefer e-copies of everything.

This sounds like the owners are putting additional capital into their company, and the amount just happens to be the net amount of the paycheck(s). If so, this is a non-event to the plan (and to everyone else), so no action is needed with respect to tax withholding, 401(k) deductions, etc. Am I missing something?

40% vested in what? If this is ownership in a portion of the company (rather than ownership thru an ESOP), then you should probably look to whatever documentation you received when you were "...given a piece of the company..."

By "account", it appears this is a DC (not money-purchase) plan. - Is that correct? - Does he need spouse signature to take a distribution to IRA?

The role of the original poster may be relevant. Counsel? If you are the TPA/consultant, then you may wish to step away from the line that looks like legal advice. This situation begs for the advice, "Please talk to your ERISA counsel. If you need a referral, I can provide a couple of names."

1. what does the doc say? 2. Not likely. What does the doc say? 3. Follow the doc. 4. Vesting might not change due to any event after DOT. What does the doc say?

How is interest determined? If it's a fixed rate, this might be a cash balance benefit. If it's based on market earnings (like a DC plan), then it might be a DC plan (notwithstanding its placement within a DB document).

http://benefitslink.com/boards/index.php/topic/25826-short-plan-year-and-entry-dates/

or any later date.

IRC 1563 https://www.law.cornell.edu/uscode/text/26/1563

Unsure if I understand all your parameters, so I'll ask questions: - Is 414(p)(3) violated? - Is 414(p)(4)(A)(iii) violated? BTW, I applaud any draft QDRO that includes affirmative clear identification of what happens if he dies first or she dies first, both before and after commencement date.

Austin, I think you missed the sarcasm in mbozek's post.

To original poster, please confirm: is this an ERISA plan?

Data as of November 30, 2015 (Monday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 3.99 3.99 Aa 4.18 4.17 4.18 A 4.37 4.40 4.39 Baa 5.52 5.30 5.41 Avg 4.69 4.47 4.58 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.39 Medium-Term (5-10 yrs) 1.93 Long-Term (10+ yrs) 2.73

He may not be a control freak. He may be unemployed, and lazy. (I've seen it.) But to your question, the plan/employer does not make decisions about a POA. Isn't that a matter for the court? No in this case, it's not, because the question really isn't about POA; it's really about the husband asking for rights to control the account (directly). Seems unlikely the plan permits that. (As my momma told me, don't look for ways to help fools make fools of themselves.)

Before anything else, does the plan answer either question?

Not even a nickel.

Just a thought: Some of the phrasing above might be a bit vague. If "the pension attorney" is employed by the city and/or the plan, then that person is not (necessarily) on your side. If so, you might consider whether you need your own legal counsel. If Carol is licensed in your state, you could do worse. If she isn't, she (or another reader) may be able to provide a referral.

Yeah, use of the term "honest mistake" might be a stretch.

Yes, and there is no need to inform the participant (via 1099) how much the plan paid for the annuity contract.

FYI, I live just down the road from this. The main hospital in this chain has a cancer center named for Mr. Davis. Clearly, he made lots of money, and then gave lots to the hospital.

1. Line 8d. Yes. 2. Assuming you mean the plan purchased a paid-up annuity (and this annuity contract provides 100% of the benefits payable), the plan does not produce any 1099R. The insurance company pays all participant benefits, and must provide the 1099.

Are the participants still employed by the controlled group?