Soc. Sec. Level Income Option

[Penman2006]

I am looking at a plan that has a Social Security Level Income optional form of benefit. The plan has an AFTAP < 60%. The level income option produces a value greater than a life annuity (until actual soc. sec. kicks in). Is that a restricted form of distribution under 436?

[Guest Xerxes]

I am looking at a plan that has a Social Security Level Income optional form of benefit. The plan has an AFTAP < 60%. The level income option produces a value greater than a life annuity (until actual soc. sec. kicks in). Is that a restricted form of distribution under 436?

Yes, that is a restricted option and cannot be paid since the Plan is < 60%.

[SoCalActuary]

I am looking at a plan that has a Social Security Level Income optional form of benefit. The plan has an AFTAP < 60%. The level income option produces a value greater than a life annuity (until actual soc. sec. kicks in). Is that a restricted form of distribution under 436?

Yes, that is a restricted option and cannot be paid since the Plan is < 60%.

Unless you use the option for specified employer payments or post a proper bond/escrow.