Replacement Plan

Hi, A DB Plan rolled the excess assets into a qualified replacement plan. Some one mentioned allocating the excess each year dollar for dollar. For  example, if an employee's salary was 58,000 then you can allocate 58,000 of the excess for that year. Is this correct? Thank you.

Well, you cannot allocate more than the 415 limit for any one year.

You need to allocate reasonably ratably over not longer than 7 years. It can be fewer than 7 years, but I think you need to map out an approximate allocation schedule and stick to it. It is subject to 415, so in your above example that person could get $58k for 2021 provided (s)he had no other additions. ER is nor deducting so the 25% PS limit should not be in play. But then you should continue at same approximate amount until the escrow is exhauster.

sorry - "not" and "exhausted" - and it's not even Wednesday yet!

1 minute ago, CuseFan said:

nor

1 minute ago, CuseFan said:

exhauster

12 hours ago, CuseFan said:

sorry - "not" and "exhausted" - and it's not even Wednesday yet!

 

 

You missed [t](s)he[y]

15 hours ago, Mike Preston said:

You missed [t](s)he[y]

I've never used that extreme before, for including masculine, feminine, singular and plural all in one. So how would you expand upon this to include the neutral, those who do not gender-identify?

I like to use gender-neutral terms like "the participant" to avoid any misunderstandings.

Singular "they" should be acceptable in most situations as well.

I'm going to start adding this to all my correspondence.  Seems good enough for our Trust Agreements:

Whenever appropriate, words used in the singular shall include the plural, and the
masculine gender shall include the feminine gender and vice versa.

I don't mind singular they, but if one is to choose that pronoun, they is going to have to use singular verb forms!

Bri am using another such concept here - it's not that I'm referring to myself in the third person, I'm just not using a pronoun for my proper name.

39 minutes ago, Bri said:

if one is to choose that pronoun, they is going to have to use singular verb forms

Bo knows pronouns (for those old enough - otherwise, Bri knows pronouns)

Thank you very much CuseFan and BG5150.