J2D2 Posted January 28, 2003 Posted January 28, 2003 Retiree who is receiving monthly pension from defined benefit plan has asked if he can assign the monthly payments to a revocable trust he has established. He represents that he is taxable on the income of the revocable trust. Pension plan does not currently allow the arrangement requested by the retiree. Other than the anti-alienation rules (and the lack of authorization in today's plan document), what other problems/issues do you see with the retiree's request? Thanks.
mbozek Posted January 28, 2003 Posted January 28, 2003 Isnt there a provison in the nonalienation regs that allows a participant to make a revocable election to a third party in writing of some or all benefits? A revocable living trust is really the alter ego of the participant for tax purposes since it is a grantor trust under IRC 671 and the income is taxed to the grantor (participant). Otherwise the part. can assign/endorse the check to the trustee. mjb
Kirk Maldonado Posted January 28, 2003 Posted January 28, 2003 I think that assignments are limited to 10% of the participant's benefit. Kirk Maldonado
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now