Andy the Actuary Posted November 30, 2007 Posted November 30, 2007 Under the present morass, plans that have terminated are no longer subject to 412. So, if a plan terminated 12/31/2006, we would not file a schedule B for 2007. Has anyone traced the thread to conclude the 430 funding standards no longer apply after the plan is terminated? We could have the scenardio where a plan is 79% funded in 2008 and terminates 12/31/2008 in a nondistress scenario with the Plan sponsor agreeing to make the plan fully funded at point of distribution. So, the question is can we pay unrestricted lump sums in 2009 while the plan is in limbo with its 5310 filing? 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.
tymesup Posted November 30, 2007 Posted November 30, 2007 I'd be leary of paying anybody while the 5310 was being looked at. Hopefully, the plan states that payments are made as soon as administratively feasible. Bad break for the affected participant, though.
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