Hojo

This is disappointing.

There's also the possibility that you have to be actively employed at Age 55 to be eligible for early retirement. You probably don't need an attorney but rather just need to keep asking questions as to why the participant is not eligible for early retirement.

It depends on the terms of the plan. From what you're saying it appears that your ex-spouse may not be eligible for early retirement and their earliest retirement date is actually their normal retirement date which is age 62.

We looked at purchasing an annuity but the annuity provider could not locate the participant. Based on their preliminary pricing the annuity cost was significantly less but, again, they couldn't complete the contract. We believe that the participant was possibly using a stolen SSN and false name and currently doesn't want to be found so I doubt this money will ever get to anyone anyway.

Yeah, no one responded there or had any examples in that thread either. The example I'm working with has a hypothetical balance of ~$11,500 which, using their spreadsheet method, turns into a payment of almost $30,000. That seems a tad excessive.

Does anyone have experience filling out the MP-100 for a missing participant in a cash balance plan? If so, is the present value reported equal to the hypothetical account balance or do you need to calculate a life annuity at normal retirement using the plan assumptions and then convert back using the PBGC assumptions?

Hopefully a quick question that I think I know the answer to..... Regardless of penalties and other fees, filings, etc and assuming a flat $ CB credit for simplicity... If a sole prop reports $200,000 on a Schedule C for 2018 and 2019 and has a $50,000 minimum required contribution to their CB plan for 2018 but does not actually make the contribution, the Plan compensation for 2018 is $200,000 minus 1/2 SE Tax and no other adjustments. If they make a contribution in 2020 of $120,000 for 2019 and 2018 and deduct those contributions in 2019, then the plan comp for 2019 is $200,000 minus 1/2 SE Tax minus $120,000. Is this correct?

Yes.

I swear my brain is turning into mush these days.....did the SECURE Act extend the deadline to adopt a DB plan until the date of the tax filing as well? Meaning, if I have a company that has a 6/30/2020 plan year end, do I have until the tax deadline to adopt a plan or must it still be signed by 6/30/2020?

Unless it's a required cashout he can start at a later date.

We know the real reason is because they're trying to double up the 415 limit, but let's see what the OP has to say......

I have to agree with this statement. The plan sponsor may wish to investigate further and pursue further actions, but as the TPA you've taken the responsible action and asked, received a certified response and alerted the sponsor.

Ditto

My thought would be that the forms were executed properly and the only delay is administrative so I would move forward with the distribution as is. Just my opinion of course.

Has been for a while now. At least the last year and a half, maybe more. Everything can be emailed to STFilings@pbgc.gov

I sent a direct message.

This. I think your simple answer is that there is no QDRO in place for this plan.

On a similar topic, for non-PBGC plans our plan document essentially states that the benefits should be allocated based on PVAB or another non-discriminatory allocation. I've taken the position that an owner could treat it as a PBGC plan in the sense that all non owners would get their full benefit and then the remainder be allocated to the owners based on PVAB. It hasn't been challenged to date, but do you think there would be an issue?

Thanks, that's what I thought. I'm just more annoyed that I have to wait for the 20- until 4/1.

I know this topic has been covered, but figured I'd start a new thread for this year. Two questions: 1) Are we expecting a faster response on renewals since they can be submitted through pay.gov? 2) Do we have to wait until 4/1/2020 to use the 20-prefix or should we start using it as soon as our application is filed (assuming we meet all relevant criteria of course)?

I think Dave missed the "new plan" part. I will ask for as much history as they have regarding hours and salary.

What was his status on the valuation date 1/1/2018? Active, so count him for 5500.

Just a quick question about a plan that is slightly overfunded, by about $200,000. Owner only sole prop. Could the sponsor leave the plan active, roll their current 415 limit benefit from the plan and the leave the excess assets in the plan. Then invest the remaining $200,000 in a money market account so not to gain interest. In 3 years when their new 415 limit is $200,000 more, take the excess? I know there's a lot more to it, but trying to keep it as simple as possible.

Ran into an interesting scenario, a sole-prop is getting 1099 income and reporting on a Schedule C. The person is also getting a 2.25% interest in an LLC and getting income reported on a K1. While both are subject to SE, I don't believe that they can be combined under the sole prop to set up a new retirement plan. Am I right, or can they be combined to forma larger level of compensation?

Based on the questions you're asking, I think you need to speak to the plan's actuary to get an expert opinion on this particular case.