Dougsbpc Posted April 19, 2014 Posted April 19, 2014 Have a very unusual scenario. A prospective sole proprietor client sponsors a traditional DB plan with 3 participants. His girlfriend is also a sole proprietor (in the same field) and sponsors her own traditional DB plan. Believe it or not, they just got married and she now merged her business with his. Apparently, when they met some years ago they each set up a prototype DB plan at a fund company. Is it possible to merge the traditional DB plans?
Andy the Actuary Posted April 20, 2014 Posted April 20, 2014 Yes. I believe 401(l) applies. This will simplify the QDRO later on. ? 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.
david rigby Posted April 20, 2014 Posted April 20, 2014 The question of "should they be merged" is much different. Might be best to ask this question of each plan's actuary. If the actuary is not involved in giving advice, then the principals should consider hiring another consulting actuary solely for this purpose. 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.
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