Bill Presson

Peter, you think the service agreement allowed the TPA to ignore the regs and documents?

As Peter suggested, the current TPA is wrong.

I’m confused by the 11/1/24 date mentioned for the 5500. What does that mean?

Of course.

We've already gotten one for 2025 plan year. Very odd.

FWIW, I would look to find a new RK.

Can it set the termination date? Possibly according to some. Can it replace the amendment to bring the plan up to date with all the laws/regs? I don’t see how. But get counsel involved.

If you are the alternate payee, YOUR counsel should be preparing the DRO. If not, YOUR counsel should be reviewing the DRO.

If it’s overfunded, why is the money still invested?

I would recommend ERISA counsel immediately. We’ll help with missing restatements but not the lack of actually establishing a plan.

The document will specify.

Rollover money never counts in the incidental test. “Seasoned” money is a euphemism for the ability of a plan to allow distributions of profit sharing money held in the plan for two years. You get out of the incidental test because it’s taxed just like any profit sharing money distributed after two years. The insurance companies like to cloak that aspect.

Rollovers don’t count in the incidental test. That means your premiums have to be less than 50% of nonrollover funds. You don’t get to ignore the test by paying with rollover money. Also look at the document. Many say the insurance must be surrendered at retirement age.

Don’t let someone that’s never done anything with a retirement plan intimidate you.

Yes ma’am. There is no attribution under 1563 between the father and the son under the circumstances you describe.