ERISA25 Posted February 10, 2011 Posted February 10, 2011 The calculations for determining withdrawal liability (both partial and complete) tend to look at an ER's contributions over past 5 years or so. What happens if you have only been in plan for one or two years? How is the calculation done?
Effen Posted February 10, 2011 Posted February 10, 2011 As far as I know, you do the calculation the same way, you just have 1 or 2 years in your numerator and therefore a smaller share of that year's change. If you have only been in for a few years, you might under the de minimis limits. Also, some plan's allow a "free look" that you might want to check out. 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.
ERISA25 Posted February 10, 2011 Author Posted February 10, 2011 As far as I know, you do the calculation the same way, you just have 1 or 2 years in your numerator and therefore a smaller share of that year's change. If you have only been in for a few years, you might under the de minimis limits. Also, some plan's allow a "free look" that you might want to check out. Thank you for your response. I guess this is something that is assumed (it makes sense) because I cannot find anything in the regs.
Guest Smash Posted March 14, 2011 Posted March 14, 2011 The plan may have a free look rule, in which case the withdrawal liability could be 0.
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