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Showing results for tags 'cb'.
Found 4 results
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Has anyone been denied a determination letter for an IDP cash balance plan? I have a client that restated an IDP to a preapproved plan. The original IDP had never obtained a DL, so they wanted to get a DL for the original plan. We sent in the application last May (2019) and just received a letter stating that due to Rev Proc 2019-4, section 12 they are not able to issue a determination. Has anyone heard this before? The IRS agent stated that they are notifying a lot of applications of this. Any input would be appreciated, even if you just let me know it happened to you. -
Looking for guidance to convert 412e3 plan into Cash balance plan. Am a single owner S-corp 44 years with 2 years into 412(e)3 plan with Whole life and Annuities. Life insurance was not required personally and seems foolish now to got sold into policy by the CPA. (should have been a red flag that CPA is the sales agent). I was not even mentioned about the CB plan option that looks more attractive with conservative investment strategies and flexibility compared to 412e3. Can the 412e3 converted into Cash balance plan instead of Termination? Any references for good companies with this kind of experience will be appreciated. Goal is to fund the pension plan in 10-12 years instead of stretching for 20 years. -
Have always used Qualified Joint and Survivor at current age as the normalization factor for the most valuable benefit when testing a traditional DB plan. We have used this even if testing with a DC plan that does not have QJSA as the normal form of benefit. If testing a Cash Balance plan I assume we need to use Lump sum available as the normalization factor for the most valuable benefit when testing correct? Thanks.
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I have a potential client that has 3 owners and no employees. They would like to set up a plan to defer some of the taxes. Is there any benefit to setting up a cash balance plan vs. a defined benefit plan? Or does it not matter since there are no employees and therefore no discrimination testing? Note - there will never be any employees. Thanks
