415 limits for variable annuities

[Guest]

Is a 415 adjustment allowed for a variable annuity paid from a db plan? EG the monthly payment has increased, because of the stock market performance to greater than the db limit. Can that increase still be paid out of the db qualified plan or must it be paid out of the excess plan?

[Guest Kathleen Toth]

Did you ever resolve this? I am facing similar questions about the use of a variable with a DB and wondered if you came to any conclusions after I saw this old message.

[Guest]

I never really got an answer; I'm thinking it's ok because 415 applies to funding issues?

[Lorraine Dorsa]

IRC 415 is a maximum benefit issue (and only peripherially a funding issue).

I've never worked with variable annuities, but I know of no exception to IRC 415 which would allow payment of benefits in excess of the limit.

------------------