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Posted

Company with 2 Partners and 2 employees.   The Partners are the only Participants in Cash Balance Plan.

Partner 1 has accrued a large benefit each year including for 2024.

Partner 2 accrued large benefits through 2023, received a lumpsum benefit of the large benefit in 2023 and did not receive a benefit for 2024.

Does this Plan satisfy 401(a)(26) for 2024?

Posted

no, it fails. 1.401(a)(26)-5(a) thows you into 1.410(a)(b)(1) which requires an increase in accrued benefit (assuming exceptions do not apply):

image.thumb.png.c42b1e4879e63b9264f975ea91de552d.png

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