Basic 417(e) lump sum question

[AndyH]

Have a takeover plan where the actuarial equivalency definition specifies no pre-retirement mortality (AMT post) and 5% interest but the lump sum section specifies that the lump sum is the greater of that or the result using the 417(e) interest and mortality.

This has been interpreted that the first calc uses no pre-retirement mortality but the 417(e) calc does.  This is a fairly new plan so there is no 417(e) transitional 411(d)(6) cutback issue involved.

Is this ok? Opinions please.

 

[Mike Preston]

Why wouldn't it?