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Posted

this may be a remedial question, but can a cb plan have a vesting schedule that isn't as good as a 3 year cliff? (1-25%, 2-50%, 3-75%, 4-100%)

Posted

If we are talking about a CB plan (or other hybrid) designed to fit as an "applicable defined benefit plan" under PPA section 701, the minimum vesting requirement is 100% at 3 years. New IRC 411(b)(5).

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.

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