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If a governmental defined benefit plan is terminating and wants to pay


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My understanding is that govt. plans are exempt from IRC sections 401(a)(11) and 417. Also exmept from sec. 411. My conclusion is that they are exempt from the lump sum minimums under 417(e).

BYW, because they are also exempt from 411(d)(6), it may be possible for such a plan to modify its lump sum definition so that the amounts are decreased.

However, as Carol Calhoun reminds us often, there may be applicable state statute(s) that could affect either or both of these issues.

I'm curious, if the Plan is terminating, is the sponsor filing with the IRS for a determination letter?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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