FAPInJax

I do not have sex distinct 1994 Group Annuity tables. The only table I am seeing is the 1994 Group Annuity (GATT) table. I cannot match that APR regardless of which mortality table I use. I would suggest contacting the other actuary and obtaining the mortality table.

The easiest way to obtain an APR is to go under Data Entry / Tables / Annuities. You can enter the post-retirement interest rate and mortality table and the form of annuity. Hit print and a table will be generated with the results.

Well, the first question is whether your document permits the payment of the early retirement benefit as a lump sum. Many documents do not which means the lump sum is always equal to the present value of the accrued benefit payable at normal retirement age.

Congratulations! Enjoyed our many conversations over the years.

The last thing they should worry about would be the 2018 valuation costs (since he will presumably be receiving 2+ million in lump sum. Note the comment above regarding the increase in the limit that would become effective 1/1/2018 (his age would not change from 12/31/2017 to 1/1/2018 and it could produce even more money) If I remember correct what the $ limit is for 2017 then a cost of living of only 1.43% would kick it up to 220,000

Why would you think he has to have 3 years of compensation? This would be an awful condition to establishing a defined benefit plan. The average compensation will be determined as the LLC progresses into the future.

Way to go! Enjoy your well deserved retirement

You could also make your life simple and vest everything at 20%.

Once an RMD starts from a DB plan - the form of annuity and frequency does not change (unless the plan terminates and a lump may be available). The first payment may be April 1 and the next payment will follow the frequency elected by the participant (usually monthly but I have seen annual). The choice of monthly will cause the next payment to be May 1, then June 1, etc. The choice of annual means the second payment is due April 1 of the following year. The amount of the RMD does not change unless the participant is continuing to work accruing additional benefits. The additional benefit can then be added to the original form of annuity and frequency or a different form may be elected.

Ah! Missed that little ditty. Thanks for catching it!

True. However, the original question was only whether the dates are different for RMDs for DB versus DC.

The rules are the same for DB plans

I agree. The ability to get the early retirement benefit can not be eliminated. The example provided would have the member eligible at 6/30/2018 when they have 10 years of service

Thanks! Good to go

So each ratio test for be for the separate source of money using it's eligibility criteria. Any reason that you can think of that the coverage for the (k) and (m) would include the same people (especially knowing that I have at least one person that I can see who is not eligible for the match) - my number of HCE and NHCE participants do not change between the (k) and (m).