thepensionmaven

Perhaps, you can modify the attached Thank you.

Anyone have any AFTAP letters which the participant is supposed to receive if the plan's AFTAP is <60%?? Would appreciate a copy. steve@thepensionmaven.com

Need help calculating contribution for second year of plan.

Could I have that link please? steve@thepensionmaven.com

Standard termination. Appropriate "non-Discrimatory Reallocation of Assets" signed by each principal prior to the termination date.

This is a plan we're terminating because the Company was sold. There are 4 equal shareholders. The plan is underfunded unless these principals waive their benefits, or unless their is a "non-descriminatory re-allocation of benefits on behalf of the owner-participants such that plan assets equal plan liabilities." The plan has been filed with PBGC for termination, no intent as yet to file with IRS. It is my understanding, having dealt with PBGC before on this, that they consider a "substantial owner" as one who owns by attribution or otherwise, more than 10%.

I've got a DB plan with 4 owners who each own 25%.

Which principals can waive benefits upon plan termination? Do they have to own a certain percentage of stock in the company?

Question has come up regarding insurance in a defined benefit plan. Product being sold is whole life with renewable term rider. Based on the insurance formula, the policies for the rank and file do not qualify for the RTR rider, but face amounts for the owners obviously do qualify. Would this be construed as discriminatory?

That is why the older doctor wants to go with as DB. He had one several years ago as a sole proprietor and foolishly terminated it. Thanks.

Prospect currently maintains a profit sharing plan for two doctors and their spouses, no common law employees. One of the doctors wants to initiate a defined benefit plan, the younger doctor does not wish to participate, and wants to contribute to the profit sharing plan. I assume since these are all HCEs there is no problem setting up a DB for one owner and his wife and setting eligibility to exclude the other doctor and his wife.

Thank you very much.

Thank you for the answer. Is there particular case law or a cite you could point to?

I am in the process of terminating a DB plan, accruals have been frozen, notices have been sent out but we have not yet filed with PBGC. One of the principals has retired, wants to take his RMD and rol over the balance to an IRA. Can he do this prior to filing with PBGC? Interstingly enough, I called PBGC, spoke to one of their staff attorneys, and he has not been able to give me an answer.

If the 8 1/2 months ends on a Saturday (in this case 9/15/07), doesn't the client's check have to be dated 9/15 and if he dates his check 9/17, he's OK for deduction purposes but not minimum funding?

Business is business. Send them to us. Steve

I'm looking for a pension study group in the New York-Westchester-Southern Connecticut area. Any leads would be helpful. Thanks, Steve

I believe that as long as the common law employees receive their minimum lump sums the owner can "waive", but the waiver has to be in writing and duly signed bu the owner both as participant and trustee, assuming he is also a plan trustee, and the participant's spouse. I would not have him waive anything until the amounts he has to pay out the common law employees is determined. He's waiving the excess benefit, so in your case the 1099R would be for only the amount he is receiving as that is the amount he is actually getting from the plan. It would be very generous to "gross-up" the distributions to the common law employees, but in actuality, the y are paid their lump sum equivalents and the boss would take the rest, and waive any amount of plan liability over the plan assets. And yes, all participants receive 1099Rs.

He can still contribute to the plan as long as he takes out the minimum RMD by 12/31.

I'm reviewing a proposal for a DB/DC combo for '06. Client has a profit sharing plan and is thinking about adopting a DB relatively soon. According to my understanding of PPA, any employER profit sharing contribution in excess of 6% of eligible payroll is not deductible. Am I correct? Thanks.

Thanks, I assume safe harbor non-elective employer contributions treated the same as 401(K) contributions, ie the participant has to be over age 59 1/2?

I'm seeing conflicting information on these: are in -service non-hardship distributions allowed in a profit sharing plan? in a 401(K) plan? Thanks, Steve

I am being asked by many clients if participants can rollover from either the company's profit sharing plan or the company's 401(K) to an IRA while still employed by the employer. What are the ramifications here?

Is spousal consent required for a participant to take a loan on his company's 401(K) plan?

I thought the question was clear, obviously not, and I am sorry. The participant died after having taken one distribution about one month prior to his death. The beneficiary is the spouse, who is NOT 70 1/2. But I think you answered my question when you stated that "in subsequent years, the distributions are calculated on the beneficiary's life expectancy." Do you have a cite for that? Thanks.