justanotheradmin Posted January 31, 2019 Posted January 31, 2019 Small company with a 401(k)/PS plan as well as a pension plan. Pension plan is written as an offset so that 100% of the NHCE benefit is provided as PS in the defined contribution plan. The two owners (husband and wife) have their benefit in the DB. Would this plan be PBGC covered? It does not meet the small service professional exemption. Would the answer be different if it wasn't written as an offset, but as a stand alone plan that is tested with the profit sharing plan? Assuming 401(a)(26) passes of course. I'm a stranger on the internet. Nothing I write is tax or legal advice. I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?
Calavera Posted February 1, 2019 Posted February 1, 2019 Since all NHCEs are participants of the DB pension plan with no benefits, your plan is covered by PBGC, but you pay premium only for owners.
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