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Need for Money Purchase Pension Plans


Guest jhannifan

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Guest jhannifan
Posted

I have a client that has both a profit sharing plan and a money purchase pension plan. My understanding of the changes made in the 2001 tax act are that they will no longer need the MPP plan for 2002 and beyond. Is this correct?

Also, assuming it is terminated, should it be terminated 12/31/01 or sometime in 02?

Thanks.

Posted

Need nore info. Why does sponsor have both plans?

Even if sponsor no longer "needs" the MP plan, that does not imply it should be terminated. Perhaps it will be frozen. If so, some advance planning should be done to determined when is the best time to make the amendment for that. Also possible that the plan will continue unchanged.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Guest Ray Williams
Posted

Change your settings to show posts back through 7/16/01- then read the Tread " Death of the MPP". This is a long discussion of the same issue

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