Message Boards Digest

January 10, 2018

Here are the most recently added topics on the BenefitsLink Message Boards:

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legort69 created a topic in Distributions and Loans, Other than QDROs

401(k) RMD After IRA Rollover

An RMD-eligible 5% owner participant has a 401(k) balance at 12/31/2016. In July 2017 the participant rolls over the balance to an IRA. In Sept. 2017 he makes a lump sum contribution to the plan. In Dec. 2017 we force out an RMD from the balance created by the contribution. The Participant adamantly stated that he took the RMD from the IRA rollover and that shouldn't have forced his RMD from the plan. Any support to the rules would be greatly appreciated.
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jane murray created a topic in Defined Benefit Plans, Including Cash Balance

Terminating Plan; Can Owner Forego Receipt of Portion of Benefit?

Sole proprietor sponsors a one person defined benefit plan. The plan is overfunded on a lump sum basis but the participant is interested in purchasing an annuity upon plan termination. I'm aware that an owner can forego receipt of a portion of his benefit if he elects a lump sum. Can the owner elect to forego receipt of a portion of his monthly benefit to make plan assets sufficient? For example, the participant who is age 75 (and currently receiving RMDs) is entitled to a $15,000 monthly benefit; the plan only has sufficient assets to purchase a $14,000 annuity for the participant. Could that participant forego receipt of the shortfall? The sole proprietor is not interested in making any additional contributions to the plan.
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