Lump sum payment restrictions

[Guest Quicksilver]

Can anyone explain what this amount is?

Prohibited payment.--For purpose of this subsection,

the term `prohibited payment' means--

(A) any payment, in excess of the monthly amount

paid under a single life annuity (plus any social

security supplements described in the last sentence of

section 411(a)(9)), to a participant or beneficiary

whose annuity starting date (as defined in section

417(f)(2)) occurs during any period a limitation under

paragraph (1) or (2) is in effect,

Thanks

[Andy the Actuary]

Can anyone explain what this amount is?

Prohibited payment.--For purpose of this subsection,

the term `prohibited payment' means--

(A) any payment, in excess of the monthly amount

paid under a single life annuity (plus any social

security supplements described in the last sentence of

section 411(a)(9)), to a participant or beneficiary

whose annuity starting date (as defined in section

417(f)(2)) occurs during any period a limitation under

paragraph (1) or (2) is in effect,

Thanks

Example, if the Plan paid a lump sum, the amount would exceed the monthly life only amount. Similarly, if the Plan allowed payment in 60 guaranteed monthly installments, such amount would exceed the monthly life amount. In each case, the distribution in excess of the life amount would be prohibited.

[Guest Quicksilver]

Thanks

I was hoping this provided some kind of de minimis amount that could be paid out. I think $5,000 is allowed.