412(i) Plans and forfeitures from annuity product

[Guest picwrc]

How do you handle a terminated participant's forfeiture from the annuity? Usually there is a surrender charge, if the annuity is surrendered in the first "so-many" years, specified by the insurance company.

[AndyH]

Goes towards the salesman's yacht club dues.

[Belgarath]

I'm not certain what your question is here. The docs I have seen define the participant's accrued benefit as the cash surrender value of the life and annuity policies. So the surrender charge comes "off the top" in a manner of speaking, then the participant receives his vested percentage of whatever is left. Remaining forfeitures reduce the employer contribution. (I'm ignoring top heavy requirements here for the moment and assuming that the values are sufficient to satisfy the TH minimum.)

[Lori Friedman]

Quint, you just took a really cheap shot at Ned Ryerson. I'm sure he's outraged.

[Guest Ned Ryerson]

It is tough to be outraged today. I am working from the deck of my yacht out on the harbor.

But death is in the air, so who wants insurance?