Guest Patrick Foley Posted May 29, 2003 Posted May 29, 2003 Being exempt from Code Section 411, a church plan can cash out benefits without regard to the 411(a)(11) limit, and it can eliminate optional forms of benefit. Is there any restriction on amending the plan to increase the cashout limit as applied to vested participants who have already terminated before the amendment?
mbozek Posted May 30, 2003 Posted May 30, 2003 No - the cashout limit can be raised retroactrively in either an ERISA or non ERISa plan. mjb
MGB Posted May 30, 2003 Posted May 30, 2003 That is not correct. The cashout limit cannot be raised in an ERISA plan above the 411(a)(11) maximum (5000), neither retroactively or prospectively.
mbozek Posted May 30, 2003 Posted May 30, 2003 My comment was intended for ERISA plans which are amended to permit a cashout above 5000 with the employee's consent but was inartfully worded. mjb
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