Guest babs51 Posted August 9, 2006 Posted August 9, 2006 I have a one-man DB plan - participant has been receiving a LA annuity for the last 10+ years. If plan were to terminate today, there would a reversion of assets to the corporation after his payout or purchasing an annuity. If he were to die while plan is still in existence, since benefits would obviously cease, do all remaining assets become a reversion to the corporation?
david rigby Posted August 9, 2006 Posted August 9, 2006 Is he receiving the 415 benefit? If not, amend the plan to increase the benefit, before purchasing the annuity. 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.
Guest babs51 Posted August 9, 2006 Posted August 9, 2006 Is he receiving the 415 benefit? If not, amend the plan to increase the benefit, before purchasing the annuity. I'm asking if annuitant receiving LA annuity from the plan should suddenly die, do all remaining assets in the plan become a reversion to the corporation?
david rigby Posted August 9, 2006 Posted August 9, 2006 If depends. If the plan purchases an annuity, probably not. 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.
Larry M Posted August 9, 2006 Posted August 9, 2006 It must be late in the day - or year - please tell me, what is an "LA annuity"?
SoCalActuary Posted August 9, 2006 Posted August 9, 2006 I suspect it means "life annuity" annuity - but repetition is a problem that just keeps coming back.
Mike Preston Posted August 9, 2006 Posted August 9, 2006 It must be late in the day - or year - please tell me, what is an "LA annuity"? Lazy A** Annuity? Nah. Maybe from the department of redundancy department? Yeah, that's it.
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