Guest JBY Posted February 23, 2010 Posted February 23, 2010 I have a client that terminated their defined benefit plan a few months ago and is now looking to start a new one. Is there any issues with this?
david rigby Posted February 23, 2010 Posted February 23, 2010 415 401(a)(4) 416 etc. 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.
Dougsbpc Posted February 23, 2010 Posted February 23, 2010 You will need to pay attention to all those David mentioned. Over the years, we have had a few takeover plans where prior plan DB accruals were not taken into account when a second DB plan was adopted by the same employer. This is a very important consideration, especially with small plans where the company owner(s) is getting maximum benefits.
SoCalActuary Posted February 23, 2010 Posted February 23, 2010 You will need to pay attention to all those David mentioned.Over the years, we have had a few takeover plans where prior plan DB accruals were not taken into account when a second DB plan was adopted by the same employer. This is a very important consideration, especially with small plans where the company owner(s) is getting maximum benefits. You also need to determine whether the company prior to now is a part of a controlled group or ASG within 415 meaning. If the person was not a majority owner, you might need an attorney's determination about aggregating the old & new plans.
Andy the Actuary Posted February 23, 2010 Posted February 23, 2010 .There has to be a pretty darned good explantation why this happened. If it was just to get the money out of the plan, then starting a new plan could be perceived as a subterfuge of the normal retirement age regs. 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.
SoCalActuary Posted February 23, 2010 Posted February 23, 2010 .There has to be a pretty darned good explantation why this happened. If it was just to get the money out of the plan, then starting a new plan could be perceived as a subterfuge of the normal retirement age regs. Eggplantation? Oh sorry, not what you meant!
david rigby Posted February 23, 2010 Posted February 23, 2010 Eggplantation? Oh sorry, not what you meant! Maybe he did mean that. 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.
Andy the Actuary Posted February 24, 2010 Posted February 24, 2010 Eggplantation - A farm where eggs are planted 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.
david rigby Posted February 24, 2010 Posted February 24, 2010 Eggplantation - A farm where eggs are planted Brings new meaning to the chicken-or-egg debate. 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.
SoCalActuary Posted February 24, 2010 Posted February 24, 2010 Eggplantation - A farm where eggs are planted Well, that eggsplains everything.
Andy the Actuary Posted February 24, 2010 Posted February 24, 2010 I'm thrilled no one castigated me for my egg-galitarianism. 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.
GMK Posted February 24, 2010 Posted February 24, 2010 Oh, ho. Now I'm shell shocked and scrambled, for sure. You guyz yust crack me up wit' yer yokes.
dmb Posted February 24, 2010 Posted February 24, 2010 Oh, ho. Now I'm shell shocked and scrambled, for sure. You guyz yust crack me up wit' yer yokes. All egg talk is giving me eggzema!
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