jwallace

Participant is age 78 and Final Average Pay for 3 years is $50,000 in 2002. Late retirement in the plan is the greater of The Actuarial Equivalent of the NRD benefit and the Benefit calculated at Actual Retirement. The Act Equiv bft in 2002 is $51,000 and the actual retirement bft is much lower. The Actuarial Equiv bft in 2001 was $47,000 (immaterial to this example, but it does show that last year the Act Equiv bft was less than the 415 limit). Therefore, her bft is $51,000. However, since I cannot exceed the 415 limit of 100% of 3 year pay (which is the $50,000 number above), I believe that I need to provide her with a Suspension of Benefits notice as described in IRC Sect 411(a)(3)(B) and further explained in DOL Reg 29 CFR 2530.203-3(a)(4). Also, the client only allows for in-service withdrawals to participants over age 65 and working less than 40 hours a month. Questions: 1. Do you agree that a Suspension of benefits notice needs to be issued to this participant? 2. If so, does anyone have a sample notice that may have covered this type of occurrence?

Takeover case for me today. They do not have enough money to fund the 2001 minimum funding contribution and have exhausted all business and personal loans. The outlook for the company is good, though. My client is deciding whether or not to begin compiling the necessary paperwork to send into the IRS for the waiver under Rev Proc 94-41. They want to know that if they rush around prior to March 15th, will this waiver even be granted? If anyone has applied for a waiver under Rev Proc 94-41, can you tell me whether or not it was granted?