CarolineK

Thank you for the quick responses!

I'm working on a calendar year plan (2012). The employer made contributions and already filed their tax return but they didn't meet minimum funding requirements. They have already made contributions in 2013 (to deduct for the 2013 plan year). Can I use these new contributions to satisfy the minimum funding requirement for 2012? And if so, how does that affect my maximum deductible for the 2013 plan year? OR do they need to amend their 2012 tax return?

I will try this. Thanks for all your responses.

The lump sum is the greater of the value using both the 417(e)(3) rates and applicable mortality and the actuarial equivalent rate. In addition, the greater of the calculation using the old actuarial equivalent and the new actuarial equivalent must be used until one year after the date of adoption of the amendment. Since your actuarial equivalent was using 30-year treasury and not the segment rates, you should do this calculation too.

We asked the same question and we're unclear on the answer. At this time, we are trying to determine if it is even an option. I believe that they do want to terminate in a standard termination. All benefits can be paid to participants if the owners waive their benefits. They were just hoping to get something from the plan and were in negotiations to the former owner regarding the benefits owed him. We can try to contact the PBGC along with filing the Form 500, but from past experience it seems that filing the Form 500 does little to bless the termination of the Plan. They can always come back on audit and disagree with the terms of the termination.

He was a substantial owner until he retired. Would that help?

The Plan is covered by the PBGC.

I'm working on a plan in which a highly compensated former employee is currently receiving benefits. The Plan Sponsor is considering terminating the plan. The active highly compensated employees will have to waive benefits to ensure the participants get paid. My question is: Can the Highly Compensated Former Employee also waive some of his benefits at plan termination? Thanks!