Guest josephr Posted March 9, 2007 Posted March 9, 2007 I have a brokerage client who has termed in a db plan, and has a lump sum distribution from a plan that appears to have an asset shortfall. The plan's attorney wants the participant to secure a bond for the distribution in case the company bellies up. I am no db maven, but I did a quick read of para 215 of PPA and can't find any data to support this. As a matter of fact, it appears that the plan may be restricted from making a distribution. DC/broker guy needs some help...
SoCalActuary Posted March 9, 2007 Posted March 9, 2007 There is a substantial volume of additional law on lump sum distributions and underfunded plans. One of the restrictions in found in 1.401(a)(4). If you can, find the presentation made by Joan Gucciardi at the ASPPPPPPA session which gives a better view of the subject.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now