Guest Dumb & Dumber Posted February 16, 2012 Posted February 16, 2012 What benefit options to you believe are available to the following participant: PVAB = $2,000 AFTAP is 60-80 Plan requires consent if PVAB is over $1,000 Plan only allows lump sums for benefits less than $5,000 Is the participant's only option to receive 1/2 of the PVAB?
Andy the Actuary Posted February 16, 2012 Posted February 16, 2012 IMHO, (provided that's what the Plan document specifies), the Plan should distribute $2,000 if elected. Section 436(d)(5) provides that a prohibited payment does not include "the payment of a benefit which under section 411(a)(11) may be immediately distributed without the consent of the participant." Section 411(a)(11) only refers to the $5,000 threshold and does not reference the $1,000 involuntary cashout limit prescribed Section 401(a)(31)(B). 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.
mattmc82 Posted February 17, 2012 Posted February 17, 2012 agree with Andy unless this was somehow an HCE
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now