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Posted

We are correcting some missed minimum distributions for a DB plan and sending in the VCP. The instructions indicate to make missed payments with an additional payment for "loss of use" of the money. Has anyone seen guidance for DB plans on what rate to use in this situation? Is it the plan stated actuarial equivalence, the trust asset rate, or maybe some other "reasonable" fixed income index? Is anyone familiar with an internal IRS document that may shed some light?

Thank you for any input!

  • 8 months later...
Posted

I have the same question: how do I determine the appropriate interest rate to use for correcting a defect involving corrective distributions in a DB plan? Is it the plan's rate of return on its assets?

Thanks for your help with this.

  • 1 year later...

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