Plan Termination of DB Plan

[Egold]

I have an overfunded DB plan.

Distributions will be made in October.  Two Participants are over 73 and are required to take RMD.

If all participants choose a lump sum distribution, are the excess assets allocated to the PVAB minus the value of the RMD, or are the excess assets allocated to each participant's PVAB?

In the second case, the over 73 participants would receive a larger share of excess assets.

[Connor]

IMO, it would be the latter, with my reasoning being that the allocation of excess assets would happen before distributions are made, and the RMD is carved out of one's benefit when the payouts actually occur, especially since the RMD is not payable until 12/31/25 (or perhaps 4/1/26).

[CuseFan]

As long as the allocation is nondiscriminatory and done in accordance with or not contradictory to any specific plan provisions for such you can do whichever way you want.

[Egold]

Thank You

[david rigby]

Please review the actual plan language.  It may already answer the question.  Or it might rule out a particular alternative.