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Showing results for tags 'defined beneift'.
I have client with a solo-DB (husband and wife) that is overfunded by about $500k. They contributed the maximum deductible against recommendations and investments were aggressive (again, against advice) and returned about 15% a year. They also have a solo-401(k) plan - the plan I administer. Both are in their mid-40's so nowhere near retirement but they are at a point where they finally understand they can no longer make contributions to the DB. Can they: 1) Rollover their DB benefits to their 401(k) and transfer the excess in the DB plan to an escrow account in the 401(k) (without excise tax) to fund employer contributions until they are exhausted? 2) Then, in a couple of years, can they start-up a new DB plan?
Client's attorney is proactively (no problems or lawsuits anticipated, just want to have an objective look) hiring actuarial firm to do actuarial equivalence study respecting client's frozen defined benefit pension plan. Client has hired a particular actuarial firm for consulting on lump sum window, and other matters through the years. The actuarial firm does not consider itself to be a fiduciary respecting the plan, but in terms of best practices, does anyone have thoughts on whether or not another actuarial firm that has never worked before with the client's plan should be selected to do the study or if it doesn't matter?