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Posted

Hi

It has been a long time since I came across this as all my plans are done on volume submitter.

Somewhere in the corners of my old memory I remember that if DC plan is done as standardized prototype and if the DB plan is done a volume submitter, it was not permitted to be set up this way. Only standardized plans can be set paired??

What am I not remembering here?

Thank you

Posted

A standardized plan probably won't allow for the DB top heavy minimum to be provided in the DC plan. If the only participants are the owners - since I really hope they're not using a standardized document if they have employees - then it probably isn't a big deal since there would be nobody eligible for a top heavy minimum anyway. Regardless I would restate the plan onto a nonstandardized document asap.

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

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