Guest GMP Posted February 13, 2013 Posted February 13, 2013 If a plan's AFTAP is barely above 80% and a lump sum would lower the AFTAP below 80%, is the full lump sum permitted?
SoCalActuary Posted February 13, 2013 Posted February 13, 2013 That is what the code allows now, assuming this is not a distribution for an HCE.
Effen Posted February 13, 2013 Posted February 13, 2013 The AFTAP is certified as of one point in time. It doesn't change based on what happens after that date. If the AFTAP is above 80% and lump sums are not restricted for the year, then you really can't do anything to restrict them. 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.
Hojo Posted February 13, 2013 Posted February 13, 2013 If the plans AFTAP has been certified for the year above 80%, then yes, you can pay out the whole lump sum.
david rigby Posted February 13, 2013 Posted February 13, 2013 Don't forget the high-25 limitation. 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.
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