SSRRS

Thank you so much mming, for your sharp and efficient idea. Just wondering 1. Since the event (termination) that made the 8955 necessary, took place during 2022, can they claim that therfore it is their job to make sure it was done in 2023 (or anything required after the 22 audit year they are not suposed to look into?) 2. Although there is no dfvcp for the 8955, however, if you use the dfvcp for the 5500, then you can file the 8955 as well with the dfvcp. Do you think it is an idea to amend the 5500 and ck off the dfvcp as well and then can file the 8955 with the dfvcp. Or just give a copy of the 8955, even if don't have proof of filing? 3. Can you use dfvcp during an audit? Thank you!

In a DB plan audit they are asking for the 8955 for that year as 2 employees terminated in the year of the audit 1. Technically you have until the following year to first report the new termination and vested benefit. 2. How do you prove the 8955 was filed if it was mailed ( prior to 2024 still mailed) with regular first class mail? A. Thru showing a copy of the signed and dated form that was mailed in? B. And must a signed copy be located or suffices if just have a copy of the form that was mailed? Thank you

Thank you. The non active referred to the DB Plan sponsored by the entity that is not active anymore.

Hi, Thanks as always for all the insights. Two PBGC DB Plans sponsored by same owner (controlled group). One of the entities is not active anymore. Both DB Plans are frozen. If the non-active DB is merged with the active DB (benefits etc carried over) is this subject to the PBGC termination process with filing all the many forms or is the only form needed is a 5310-A as it is not a termination rather a merger? Is there any downside to merging as opposed to terminating the non-active plan? Thank you!

Hi, Thank you as always. Someone mentioned to me that he was on a conference call with an actuary that works for the PBGC. The actuary suggested, as a remedy for overfunding (since the 417 (e) rates have gone up to the 5% range and lump sums have gone down) to amend the plan's equivalence to the 2% range and this would help raise the liabilties and reduce the overfunding. Is this reasonable to use an interest rate that is quite low, for the plan equivalence, and is considerably lower than the current 417(e) rates? Can it be justified? This could help solve many overfunded plans, and especially owner only plans (that don't mind raisingvthe liabities fir themselves). Thank you.

Thank you Effen!!!

And what if took RMD, properly showed it as income on annual return, and paid the taxes, however, forgot to put it on the 5500SF. 1. Should the 5500 SF be amended to show the RMD on the benefits paid line? 2. What is the ramification if forgot to list om the 5500SF a RMD THAT was taken or a rollover from the pension plan to an IRA? Thank you!

Thank you. Effen. 1.The plan that he was meant to take his RMD issued the 1099R. The plan that he acctually inadvertently took the RMD from did not issue the 1099R. 2. Would things be better if the plan that he actually took the RMD, in error, had issued the 1099R?

Thank you Effen. He reported the RMDs on his annual personal returns and paid the taxes. It is just that he took it from the wrong plan. If he pays the plan back (since he was not suposed to take his RMD from this plan) can that be a remedy?

Thank you Effen, as always. You mention that If owner 1 of this controlled group, took his RMD from Plan B instead of from Plan A, it needs to be rectified. 1. Can this be done by now taking his RMDs from Plan A for the past few years and then putting these RMDs into plan B, to.pay back the rmds inadvertently taken from plan B? He took the right amount the past few years just from the wrong plan. 2. Would the 5500s need to properly reflect the RMD from plan A, or is it enough that the 5500 for plan B shows the RMD each year, and the remedy was done by taking from plan A and putting it back into plan B? Meaning it is explainable why the plan B 5500 shows the annual RMD, as inadvertently it was tak taken from.plan B, and it was later rectified ? Thank you!

Thank you Cherry Park Advisory. The plan is frozen, and lump sums are not paid under this plan. Therefore, the ramifications of the AFTAP restrictions are less. The PBGC filings are up to date as well.

Hi, Thank you as always for the insights. The owner of Corp that sponsored A DB plan (traditional) passed away in July 2024 at age 61 and 8 months. The plans NRA is 62. The plan default (if no election was made) is first to the wife, if no wife, then the distribution goes to the children. The wife was entitled to a lump sum in 2024. However, the election forms etc. were not finalized, not due to beneficiaries fault, until May 2026. 1. Can you calculate the lump sum as of 2024, and then give interest since the lump sum was not paid until 2026. 2.Or must you actuarialy increase the accrued benefit from 2024 until the payout date of 2026, and then calculate the lump sum as of 2026? 3. Or are both methods ok? Thank you

Two corps have the same owners and are a controlled group. Instead of opening one DB Plan to cover both corps, two DB plans were set up. One DB plan for each corp. One owner was placed in plan A that covered him and the employees of corp 1 and the other owner was placed in the plan B that covered him and the employees of corp 2. 1. Owner 1 in plan A was supposed to take an RMD from plan A. Inadvertently took the RMD from plan B. Is this an issue, or since this is a control group, the plans technicly cover both entities? 2. What if owner 1 in plan A for a few years deposited his contributions into plan B, Inadvertently? Thank you for any insights into this!

C.B. Zeller...this is artwork. Thank you!

Thank you very much Effen and CuseFan, as always. If you would write the next pension book out there, I would be right up front to purchase it.