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Showing results for tags 'timing of distributions'.
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When it comes to plan terminations, we have always obtained all benefit elections and then instructed the trustee to distribute benefits all at one time. Is this really required? For example, we handle a 10 participant non-covered traditional DB plan that terminated November 30. Is there any problem distributing the benefits to one of the two 50% shareholders of the plan sponsor now and all remaining participants 6 months from now? All participants other than the one remaining 50% shareholder would receive their full benefits (including PVABs determined up to the distribution date). The one remaining shareholder will end up waiving about 10% of his benefit. Thanks.
