Guest Doogie61 Posted December 10, 2009 Posted December 10, 2009 I took over a plan for 2009 for which they want to terminate in 2010. Here is the deal... The 2008 valuation shows that the Normal Form is 100% JSL however, they want to payout lump sums...lol Can I convert this to a life only?
david rigby Posted December 10, 2009 Posted December 10, 2009 Can I convert this to a life only? Need more info about what you mean by "convert". 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.
Effen Posted December 10, 2009 Posted December 10, 2009 That fact that the normal form is a J&100 really has nothing to do with whether or not the plan can pay a lump sum. Also, the normal form is defined in the plan document, not the valuation. Read the plan doc. If it allows for a lump sum, then you can pay it. If it doesn't, you can amend it as part of the termination so that it can be paid. How many participants are in the plan? 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.
Guest Doogie61 Posted December 11, 2009 Posted December 11, 2009 Just three.....all owners! That fact that the normal form is a J&100 really has nothing to do with whether or not the plan can pay a lump sum. Also, the normal form is defined in the plan document, not the valuation. Read the plan doc. If it allows for a lump sum, then you can pay it. If it doesn't, you can amend it as part of the termination so that it can be paid. How many participants are in the plan?
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