Overfund CB

We did a proposal for a CB plan for a sole prop, effective for 2015.  Since few if any brokers understand cash balance plans, I insisted on going on the call.  Broker refused to have us as TPA attend initial sales call sold plan to a physician 2 NHCEs who have been terminated for years and are fully vested.

Physician was told by broker that he could contribute $250k per year.  Small wonder why he did not want me on the sales call. The contribution was close to the max in the range, but still short of the max PVAB for plan years prior to 2021.

For 2021, plan definitely overfunded.  Client on extension for 2022, I quote a $0 as plan definitely overfunded, with a -11% ROR.

Client over 70, not sure, but can he rollover a portion of the overfunded to an IRA and possibly make a contribution?  Would just kick the can, I realize.

Alternatively, freeze the plan and establish a PSP for 2022 as long as the contribution made and the plan dated prior to the due-date of the extension?

Of course another alternative is to drop the client entirely, as a waste of my time.

He can adopt a profit sharing plan for 2022.  Taking a distribution from the pension plan and rolling it over won't help.  The distribution will carry out that portion of his accrued benefit, leaving the plan in the same overfunded condition as before.

What does it mean "overfunded"?  Is the plan overfunded in terms of Assets > PVAB based on 8 years of participation since 2015?   Or is it overfunded even when you look at 10 years of participation in 2024?  In the latter case you definitely want to start paying accrued benefit (as in service distribution) to avoid the problem from growing bigger.  Most likely it is a number play.  I would also review 2023 return through 06.30 (I am seeing 12-13% for some of my clients) and would try to guesstimate what the new 415 limit will be for 2024.  Another hidden surprise  there - what if interest rates shoot over 5.50%?  We are not far off right now, what if rates keep on increasing - your LS will take a dive on account of that. 

All in all it is a huge waste of valuable time IMHO.  This is unless you get paid by an hour and then it becomes a very interesting and rewarding multi-year actuarial math exercise.