Final Payouts from DB Plan

Owner is the last one paid out.  He makes small contribution to hit his 415 limit for his rollover.  Subsequently a trailing dividend posts to the account.  Plan does not provide for reallocation of excess assets to participants.

Can you treat that as intrinsic to the assets transferred to his IRA and roll it over or do you have to/would you transfer it to the PS Plan and allocate there as excess DB assets?

Thank you

No and yes, or use to pay or reimburse final plan expenses.

Thanks very much.  Thought maybe I was being too aggressive with that idea.

I know this isn't the question, but you said, "owner is the last one paid out.  He makes small contribution to hit his 415 limit for his rollover".

Does that mean there were other employees who were paid out first?

Was his accrued benefit = 415 maximum at the time of termination?

I just wanted to make sure he didn't pay everyone out, then make a contribution to create excess assets which he allocated to himself up to the 415 maximum, which would be a clear violation of 1.401(a)(4)-1(b)(4)

Excess assets must be allocated in a non-discriminatory manner.  In other words, not all to the owner!!!

In the limited cases we've seen, the trailing dividends were small, and since the investment from which the trailing dividend was rolled over in-kind to the IRA, we assumed the trailing dividend  actually belonged to the IRA, just posted to the wrong investment holder account.  Maybe the key here was an in-kind distribution to the IRA...