Guest Star Seeker Posted October 11, 2002 Posted October 11, 2002 I have a prototype profit sharing plan. It now provides that for distributions made more than 90 days after the last valuation date the participant will be paid 5% interest in lieu of re-valuing the plan to reallocate the earnings. Plan provides for annual valuations and has pooled accounts. TPA has requested using 0% interest. My mind is screaming that this can't be done, but I can't find any authority on this. Any suggestions?
QDROphile Posted October 11, 2002 Posted October 11, 2002 How about the ERISA and tax provsions that require the plan to be administered in accordance with its terms?
Guest Star Seeker Posted October 11, 2002 Posted October 11, 2002 TPA wants to amend plan to change to 0%.
Kirk Maldonado Posted October 11, 2002 Posted October 11, 2002 I don't think that is permitted under the Section 411 regs. Kirk Maldonado
Guest Star Seeker Posted October 11, 2002 Posted October 11, 2002 which? The amending to reduce or the attempting to short the participant?
QDROphile Posted October 11, 2002 Posted October 11, 2002 My limited comment on the 0% is that the amendment would be stupid and inflammatory. Almost a guarantee of a challenge. If the plan is amended, it should be to eliminate the reference to interest at all, not to change the percentage to zero. No comment on how to implement.
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