Jakyasar

Just attended the ASEA PBGC webinar and the answer to my question, unless you payout before even thinking about terminating the plan, no payout can be made and all those $500 benefits must go thru the PBGC termination process.

NOIT already done

Thank you for the list, always good to know more

Hi I have not had an experience with low balances for many years and just want to confirm my findings. Checking a PBGC termination for a CB plan - official termination date is late August 2026.. There are a few participants missing but their balances are less than 7k. Some are as low as $500 Plan just got amended to increase the force-out to 7k. If the participants cannot be located, PBGC will take over their balances as lump sum since no annuities, correct? Instead of PBGC taking over, can the balances be transferred to an IRA thru a company like Penchecks? If yes, is this subject to PBGC approval? Thank you

Even if the balance is less than force-out limit? Just curious.

How was this resolved as providing partial interest is not within the plan provisions? The agent asked you to violate the terms of the plan.

As Cusefan indicated, it is available in IRS pre-approved document, at least the one I use i.e. no pro-rata interim adjustment is required is one of the options. I researched this, checked this and confirmed with the document vendor that no interest credit is provided until 12/31 i.e. if the ASD is 12/30, no interest crediting. FYI this was based on fixed interest rate only, nothing else. 100% in agreement with Corey on the 411d6 issue as well since this was also discussed with the vendor. FWIW

I think the answer is no but still would like to run this by the gurus. Owner only plan over age 50. For 2024, LLC filing as a sole-prop. For 2025, LLC elected to file as an S-corp, no w-2s were taken. Also had schedule c income over 500k. For 2026, only s-corp. I do not think 2026 catch up needs to be Roth, agree?

Thanks, that was my understanding as well, passing the midpoint test i/o ratio test for each rate group (this is for 401a4 only as no issue with 410b). it is the using individual's names for each group I had a brain freeze with.

Any takers?

Having a brain freeze for a change. Checking a CB plan. No exclusions, all are included. The 2 owners (50/50), are defined by name in their own groups i.e. group 1 - Joe Smith and group 2 - Moe Smith. All others who are rank&file are in group 3. Does each rate group need to pass ratio test or mid-point test is fine here? How about if each group for the owners is written as: Group 1: Shareholder of company - Joe smith Group 2: Shareholder of company - Moe Smith Thanks

Plan does not file 5500-EZ for 2026 as BOY was 5500-SF, if I recall correctly, I may be wrong though.

Owner+employee for many years, employee terminated and got paid during 2026 and only owner at end of 2026. Once employee got paid, applied to PBGC for exemption from further coverage and got exemption effective May 1, 2026 so the rest of the 2026 no more PBGC coverage. Question is for 2026 deduction limits. Hope explained better this time.

DB plan was covered by PBGC BOY but got an exemption during the plan i.e. not covered at EOY. What is the DC deduction limit 6% or 25%? Drawing a blank.

I am not sure removing a possible benefit (assuming that I am making sense here) is something I want to tinker with even if the interim amendment deadline is EOY in 2026. Not clear how it would affect 411d6. I am playing this a bit on the cautious side, may be too paranoid.