thepensionmaven Posted January 21, 2022 Posted January 21, 2022 I'm setting up a DB and 401(k) for a prospect. All employed on the effective date enter the plan on the effective date; anyone hired after, 12 months of service. Plans will state Vesting from the effective date of the plan - DB has to be -3 year 100%, but PS will use 2/20. I do recall a thread mentioning this would not be possible?
C. B. Zeller Posted January 21, 2022 Posted January 21, 2022 I can't speak to what you may or may not recall, but I don't see any problems with anything you described. Bri and Luke Bailey 2 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
CuseFan Posted January 26, 2022 Posted January 26, 2022 Agreed. You can start vesting from plans' effective date and for BRF purposes, the statutory vesting schedules are deemed equivalent. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Mike Preston Posted January 26, 2022 Posted January 26, 2022 Has the plan sponsor ever maintained a plan before? Lou S. 1
thepensionmaven Posted January 27, 2022 Author Posted January 27, 2022 No, and I do know the rules concerning this issue.
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