SSRRS

Manatee, thank you. Much appreciated.

CuseFan, thank you.

A corp. made numerous contributions to their DB Plan during the months of January thru September 2018. These contributions can either be used for the 2017 year-(of course must be within the min/max range) (as made by extended due date of 2017 return -sept. 15, 2018) or for the 2018 year. Question: Can you use contributions made in January, February, and June 2018 for the 2017 tax year and then use contributions that were made in March, April and May 2018 FOR THE 2018 tax year, or must you go in order (ie contributions made from Jan thru April 2018 for the 2017 tax year and then contr. made from May 2018 thru Sep 2018 for the 2018 tax year). Thank you.

This is from a while ago, but if possible, I would really appreciate more clarity on this. 1. If we are doing EOY Vals, would the accrual of .5 % for year of participation that would be given to a new participant (to cover 401(a0(26)) be shown in the FT only (as an A/B that was there as of beg of the yr. and no increase) or that there was zero A/B at the BOY and the .5% accrual as an increase (and shown in the TNC -and there would be no FT for this new partc.) 2. If it is shown as a Benefit increase and a TNC --if the plan is hard frozen, how is this done, is it a special corrective method that is allowed even though the plan is frozen? Or is the idea that that the plan formula is being amended to a .lower formula of .5% per yr of participation -with wear away- and therefore the net result is that only the new participant is getting an accrual of .5% for the current year since the benefit that the others have accrued until now is in excess of this new formula of .5% pr year of participation? Thank you very much.

It would be greatly appreciated if someone could shed light regarding the above. Thank you

Thank you Unfunded and CuseFan for your help. The plan is not underfunded and therefore we will add a new participant (to cover 40%) and give a benefit of .005 for the year of participation. Question: Since the plan is hard frozen should this benefit that is being given to the new partic[pant be shown as a benefit that was there already as of the beg. of the year (funding target-sort of a correction to pass 401(a)(26)) and not as an increase (and no TNC), as since the plan is hard frozen and there are no accruals to the rest of the participants, it seems strange to have this new participant getting an increase ? Thank you

Thank you.

Someone mentioned to me that a DB Plan that they administered was taken over by a new firm. The new firm is asking the prior administrator/actuary to back up (ie show the calculations for each participant) the accrued benefits for all participants that are in the most current valuation (7 participants). Is this something hat is required of the prior Actuary ? Thank you.

A frozen DB Plan (hard freeze) that is not covering enough active employees to pass 401(a)(26) can add a new participant (if all that is needed is one more participant to satisfy 40%) and give a .5% accrual for the current year as is suggested above. I have seen this solution being advised on numerous occasions. Can someone please help me understand this method, as if the plan is frozen how is this (minimal) accrual being given to a new participant (and all current participants are not given an accrual for the current year)? Is it allowed as a special corrective measure? If yes, is an amendment required stating that " an accrual of .5 will be given to a new participant to comply with 401(a)26)"? Thank you in advance for shedding light on this topic.

Thank you Andy H, David Rigby, CuseFan and Lou S.

HI, An one participant owner only DB plan wants to terminate and roll the assets to an IRA . I recall an old post where it was mentioned that since the plan is terminating and rolling the assets to an IRA the first RMD would be allowed to use the DC method. I this indeed allowable and what if for the current year he needs to take two RMDs (as the first was deferred) can he take both RMDs based on the DC Method and then roll the remaining assets to an IRA? Thank YOU.

Thank you very much. We will use 6.25% (I just hope they will be ok with this as prime has gone up considerably).

Hi, The current prime rate appears to be 5.25 (WSJ). What are plans using currently as the interest rate for plan loans? Thank you.

C.B. Zeller, thank you very much for your help and efficient information.

Thank you, the SB reported only the DB amount (ie 250,000 were the total contributions to the DB account, 225,000 was listed on the SB and the 25,000 would be reported now on the DC 5500).

Hi, Company has DB and DC (MP) Plans. They planned on making a db and DC contribution for the year ended 12/31/17. Inadvertently they deposited the DC contribution into the DB account (db plus dc contribution all went into db account, and was below DB Max). Can this be self corrected by transfering the money into the dc account? If yes, what if the transfer is made today, October 18th, as this is after 9/15?. Thank you

Hi, Company has DB and DC (MP) Plans. They planned on making a db and DC contribution for the year ended 12/31/17. Inadvertently they deposited the DC contribution into the DB account (db plus dc contribution all went into db account, and was below DB Max). Can this be self corrected by transfering the money into the dc account? If yes, what if the transfer is made today, October 18th, as this is after 9/15?. Thank you