Lump Sum cashout (timing/value)

[Guest jmrodrig]

I want to be clear.

Calendar year DB plan with lookback month of November.

Participant terminated this month (December 2009). If they are paid out in January 2010, it is my understanding that the 417(e) lump sum should be valued using 2010 mortality. But would I use the December 2009 segment rates or the Novemeber 2008 segment rates?

Thanks in advance.

[david rigby]

I vote for November 09 minimum present value segment rates for a plan year beginning in 2010.

http://www.irs.gov/retirement/article/0,,id=177406,00.html

[Guest jmrodrig]

That logistically makes sense. I remember hearing some time ago that the termination date of a participant and payment date effect the mortality and segment rates but was unsure.

Thank you for your response.

[Andy the Actuary]

I would vote for using whatever the Plan prescribes.

[david rigby]

I would vote for using whatever the Plan prescribes.

Also good advice.