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Showing results for tags 'DB/DC minimum accrual'.
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Corporation sponsors a DB and PSP that are aggregated for testing purposes. Plan was effective 01/01/12 . The DB accrual formula was 5% per year of service for owners and 0.5% per year of service for all other eligible participants Plan is to be terminated in 2016 and was frozen effective 1/1/15 with no further accruals For 2015 the owners made a substantial contribution in order to bring plan assets as close as possible to the 417 termination liability. Is there any problem with the above? Can the IRS challenge if the average annual accrual rate in the DB is not at least 0.5% per year of service: in our case it is a little bit lower if no accrual are allowed for 2015. Thank you for your help