Mike Preston

How is 150 divided?

Is w2 150k each or total? If desirable to increase dB deduction are you willing to increase w2s?

Don't can't? Huh?

It is highly unlikely that the plan would honor a DRO as you described. But a little change might work. The DRO acknowledges that the form of benefit is a 75% J&S. Let's presume for argument's sake that the Single Life Annuity would have been $1,000/month but the plan is actually paying $920/month as a 75% J&S. While both are alive the plan pays $460 to each. If participant dies first, the monthly amount payable to the alternate payee changes to 75% * $920, which is $690/month. If the alternate payee dies first, the monthly amount payable to the participant changes from $460 to $920. Easy, peasy. Note that the plan pays the same amounts no matter the marital status of the recipients. If you want to change recipients for a portion of the monies then you'll have to horsetrade one thing or another.

Good enough!

It works if the Plan is not calendar.

Well I guess it is time to just agree to disagree.

I think you are presuming a certain population ratio of NHCEs to HCEs. If there were 999 NHCEs and only 1 HCE do you really think an amendment affecting the HCE and only one NHCE would be non-discriminatory?

It does Not invalidate the request.

I have never heard it expressed quite that way. Care to provide a cite?

Elaborate please.

Tru Dat.

I don't think that position would be upheld if challenged. But I recognize that others might feel this is too aggressive.

Yes.

The limit is a cap, so whoever goes last is cut down to size.

You won't like this but the above words indicate a complete lack of understanding. Please make sure that you involve a lawyer.

Not?

Nope.

Bob, look at the attribution rules in section 1563 of the Internal Revenue code.

No issue whatsoever.

To add to the confusion, OP seems to be clinging to the idea that the original 3 page settlement agreement is not a DRO. Does everybody agree with that?

The operative word is may. In our language that also means may not.

Interesting. But the significant change would involve something other than company b adopting an identical plan.

I will if the client, aware of the sol issue decides not to file.

We don't. In fact, we file on a cash basis when we do first file to help eliminate any concern.