Guest Mike Mallon Posted December 20, 2000 Posted December 20, 2000 Has anyone amended/converted a money purchase plan into a defined benefit plan in one plan year. Assume the mp allocation requirements have been met for the year. Also assume that the db minimum funding requirements are greater than the mp contribution. How do you coordinate 412 and 404(a)(7)? Is their only one minimum funding standard and one deduction limit?MP/DB conversion
david rigby Posted December 22, 2000 Posted December 22, 2000 I would certainly recommend against this. Better would be to make the change on plan anniversary date. You might end up with 2 required contributions in the year of change. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
IRC401 Posted December 23, 2000 Posted December 23, 2000 Will the conversion violate 1.411(d)-4 Q&A 3?
Guest FredReilly Posted December 27, 2000 Posted December 27, 2000 Since the regulation only allows change from DB to DC separate account feature where an "elective transfer" has occurred, I don't see how you can go from one to the other without a plan termination and distribution subject to participant and spousal consent.
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