Contributory DB Plan Involuntary Cash-outs

[DTH]

When determining the small benefit cash-out amount in a DB contributory plan are employee contributions part of the vested accrued benefit. If not, could you direct me to the Code site.

[MGB]

Yes, they are a part of the accrued benefit that is used to determine if the limit is exceeded. There is no distinction in the law between employer-derived benefit and employee-derived benefit for this purpose.

[DTH]

Thank you ... I won my bet!

[david rigby]

In the U.S., most of the contributory DB plans are sponsored by a governmental organization. If that is the case here, please use caution in applying the Code.