Guest The Pension Kid Posted April 10, 2007 Posted April 10, 2007 I have a plan whose normal form is J & S 50% for everyone who is married (for our sake we'll assume everyone is, in fact, married). When I calculate the 417(e) lump sum, do I calculate it using the normal form (J&S 50%) or convert it to Life only using AE first?
Guest Carol the Writer Posted April 10, 2007 Posted April 10, 2007 My guess is that you ought to compute the 417(e) lump sum based on the 100% J & S. WITH THE PROVISO that the 415 maximum is based on a Life Only annuity purchase rate. (I suggest that you get another opinion than mine on the 417(e) lump sum conversion.)
Blinky the 3-eyed Fish Posted April 10, 2007 Posted April 10, 2007 J&50% basis is correct. I believe if you look in the 417(e) regs, you will find the cite. No time to search for you. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
AndyH Posted April 11, 2007 Posted April 11, 2007 Agreed, but I think Carol's point about 415 is also correct.
Andy the Actuary Posted April 17, 2007 Posted April 17, 2007 What does the plan document say? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
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