plan conversion

[thepensionmaven]

I used to work for a law firm-TPA firm that prepared plan conversion amendments.

This was prior to the 411(d)(6) regs- I do not recall whether it was DB to PS or PS to DB.

We are speaking of a sole proprietor with no employees.

Since we are speaking of an owner-only plan, what is the opinion??

[Effen]

Since we are speaking of an owner-only plan, what is the opinion??

What is the question?

In general, you shouldn't "convert" any dc into a db or dc into db. Always better to terminate and start fresh.

P.S. I believe 411(d)(6) has been around since ERISA was passed.

[MoJo]

Since we are speaking of an owner-only plan, what is the opinion??

What is the question?

In general, you shouldn't "convert" any dc into a db or dc into db. Always better to terminate and start fresh.

P.S. I believe 411(d)(6) has been around since ERISA was passed.

I'm not sure it's *always* better to terminate and start fresh. Many, many more factors must be considered before that determination is made. I *always* start from the premise that "preservation" of benefits (convert, merge, etc.) is better, *unless* there is a good reason not to.

Just my 2 cents worth. Beyond that, yup: What's the question?

[jpod]

pensiondude: By any chance are you asking whether a conversion of an overfunded db to a dc somehow avoids the reversion taxes?

[frizzyguy]

Since we are speaking of an owner-only plan, what is the opinion??

What is the question?

In general, you shouldn't "convert" any dc into a db or dc into db. Always better to terminate and start fresh.

P.S. I believe 411(d)(6) has been around since ERISA was passed.

I agree with Effen with a solo situation. I want to go as far as to say that applies to all situations but there maybe that one time exception I'm not thinking of that would prove me wrong.