MGOAdmin Posted February 24, 2015 Posted February 24, 2015 I have a Cash Balance Plan year of 1/1 - 12/31. Am I able to amend the plan this month adjusting the crediting rate to the market rate of return prospectively (for March thru Dec.)?
Effen Posted February 24, 2015 Posted February 24, 2015 411(d)(6) still applies to past accruals and the crediting rate is part of the accrued benefit. Therefore, you can't really change the accrual rate on the previously accrued benefits without at least monitoring them to make sure the participants would never get less under the new formula. It may be easier to term the old plan and start a new plan. 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.
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