Reducing owner's benefit

[dmb]

I have a client with a DB plan that contains the 100% owner, his wife and a common law employee. The plan year end is 7/31/02. The minimimum required contribution would otherwise be in $150,000 range and the client is strapped for money. I realize the timing is not good, but is there anything i can do to reduce the owner's benefit. He has also almost fully accrued his benefit. Any suggestions would be appreciated. Thanks.

[Mike Preston]

There is nothing that can be done to reduce the owner's benefit, per se. However, if the owner being strapped for cash indicates that he, like many others in the US, have reevaluated their retirement horizons, it may be appropriate for the actuary to assume a later retirement age than was used in a prior valuation.

[dmb]

Thanks Mike, that was my first thought also. I just wanted see if there might be an option i wasn't aware of.