jane murray

the plan does not allow refinancing of loans. also plan only allows one outstanding loan at a time.

so basically the participant would net zero. very strange result but i understand now. thank u both

i believe you are correct based on the methodology outlined in the other thread. can anyone else comment if this result makes any sense. im struggling why the participant nets zero.

thank you esop guy. so it seems the answer is 20,000 is the new max loan after repaying the 20,000 current outstanding balance. so that wouldnt net the participant anything. please confirm.

participant has a 150,000 account balance in a 401(k) plan. the plan allows one outstanding loan at a time. lets assume the participant took out a 50,000 loan in 2015. the current loan balance is 20,000 and the highest outstanding loan balance in the past 12-month period was 30,000. the participant wants to repay the existing loan balance of 20,000 and take a new max loan. is the new max loan (after the repayment of the existing loan) 20,000 or 40,000? 50,000 - (30,000 - 0) = 20,000 or 50,000 - (30,000 - 20,000) = 40,000

A defined benefit plan that is part of an offset arrangement with a profit sharing plan. The defined benefit plan is terminating. In the case of participants in the defined benefit plan who are totally offset as of the plan termination date, is the plan administrator required to provide a copy of the Notice of Intent to Terminate to these individuals that are totally offset and will not have a benefit payable from the defined benefit plan?

one person defined benefit plan with january 1st valuation date. the plan has a single lump sum feature. the 2017 AFTAP was certified to in june 2017 and equal to 150% and the FTAP was 95%. the plan has a substantial prefunding balance resulting in the difference in the FTAP and AFTAP. plan benefit formula is amended in august 2017 from 5% of comp. to 6% of comp. and the new formula applies to prior years of service. i assume a new 2017 AFTAP needs to be certified. that being the case, the new 2017 AFTAP taking the new benefit formula into account is equal to 120% and the new FTAP is 70%. other than the plan being subject to quarterly contributions and not being able to use the prefunding balance to satisfy the minimum contribution requirements, are there any other reasons why i would need to burn a portion of the prefunding balance to increase my FTAP to the 80% or 100% threshold? i assume a mandatory burn is not required since my AFTAP is above 80%. some insight would be helpful.

2015 AFTAP certified timely at 85% at 1/1/2016, AFTAP is presumed to be 85% at 4/1/2016, AFTAP is presumed to be 75% (85% less 10%) since actual 2016 AFTAP has not been certified. in order to avoid lump-sum benefit restriction, a presumptive burn occurs on 4/1/2016. to get the presumed AFTAP to 80%, lets say $20,000 of the prefunding balance is burned. in July 2016, actual 2016 AFTAP is certifed at 82% taking into account 2015 contribution made in June 2016. this is the final certified 2016 AFTAP. when preparing the 2016 Schedule SB, is there a deemed burn equal to $20,000 on line 12? or since the actual 2016 AFTAP is certified at 82%, the presumptive burn equal to $20,000 is disregarded? im having trouble figuring out how the presumptive burn impacts the 2016 Schedule SB.

anyone recommend a document provider I could use. I have heard good things about ft William but would like to hear other opinions. much appreciated!

plan sponsor amends plans benefit formula effective january 1, 2014 to increase benefits from 2% to 2.25% x years of benefit credit. the plan was rewritten at the time and the benefit formula in the new plan doc is equal to 2.25% of avg. comp. times yrs. of ben. srvc. it appears the new formula applies to yrs. of ben. srvc. for years prior to 2014? the plan does not specifically say that the formula only applies to years after january 1, 2014. also does the more generous benefit formula apply to terminated participants that have yet to be paid but severed employment prior to 2014?