overfunded DB and new PSP - senior moments

[thepensionmaven]

We have a situation where the client has an overfunded DB which is just sitting in an investment account; client wants to set up a profit sharing plan, with a 25%, no 401K.  Client is self employed with employees, not a PBGC.

Is this doable?  Usually, we would set up  a combination DB and a 6% profit sharing plan.

Not sure how this would work with an overfunded plan when no contributions can be made.

[Larry Starr]

46 minutes ago, thepensionmaven said:

We have a situation where the client has an overfunded DB which is just sitting in an investment account; client wants to set up a profit sharing plan, with a 25%, no 401K.  Client is self employed with employees, not a PBGC.

Is this doable?  Usually, we would set up  a combination DB and a 6% profit sharing plan.

Not sure how this would work with an overfunded plan when no contributions can be made.

If there are no contributions made, then there is no contribution considered in the deductible limits which is the same as there being no DB plan at all.  Do you have some other issue of concern?

[thepensionmaven]

That's what I thought, thanks for the confirmation.