ogilviesann

I have a 457(b), non-governmental plan that we will answer basic questions for a 401(k) client. The document was drafted to begin distributions upon severance of employment or at age 70 1/2. They can choose a lump sum payment or 5, 10 or 15 year installments. One of the participants asked if he is still working at 70 1/2 and chooses to take a 10 year installment payout, if he retires 3 years in, can his payout be accelerated so that he can take the balance? The document isn't clear, but there doesn't appear anything that would stop the acceleration. His financial advisor who worked with them to set this up many years ago has no clue and is asking me. We don't specialize in 457 plans so I want to ask the experts in this group. Thanks for any insight you can provide.

We have a 401(k) plan that uses a bundled insurance product that each participant has control over for their investment choices. During the 2015 plan year, the plan trustee/15% owner of the company named his brother as the investment broker for the plan. He is only receiving commission from the insurance company. Is this allowed or is he a disqualified person and we have a prohibited transaction? The definition of family member is spouse, ancestor, lineal descendant and any spouse of a lineal descendant. The commissions he is being paid appear to be reasonable. I just want to make sure I let them know that it's okay to retain him as I initially told them that I didn't think they could. Egg on my face, of course

The owner's spouse did defer, so we know that the TH minimum kicks in. The TH minimum only goes to non-key and the SH Match does count toward the TH minimum. The plan is integrated though and we just need to know if it's acceptable to allocate the TH Minimum first and then allocate the balance of the $7000 left to everyone else on a pro rata basis. The $7000 contribution is small, so it won't fully integrate.

We have a SH plan that is top heavy. They have only put in the SH match since amending to add 401(k) provisions. This year the CPA wanted to put in a $7000 PS. This contribution amount is not sufficient to integrate. Can we reduce the PS for the owner and his spouse so that all of the non-keys get the TH minimum or can we allocate the $7000 on a pro rata basis and then increase the PS for those who didn't get the full 3% with the prorata allocation and SH Match. I have reviewed the plan document and it only addresses when there is more than necessary to integrate, not less.