"This client sold his business, it was absorbed by a larger company. Almost all of the employees went to work for the new owner. Many employees are rolling their pension accounts into the new employer's plan, some into IRAs. One employee has a loan and would like to 'cancel it out' and only roll over her tangible assets to the new employer's plan. Any reason she can't do this (split her distribution into 2 parts, roll over into new plan and get a cash distribution of her loan as a taxable distribution)?"

"Marriage was bifurcated (due to age and health of both parties both in their 80s and respondent has Alzheimer's). Court hearing set to address community property but continually postponed by petitioners and respondent's lawyers. 18 months pass; the petitioner's attorney never files a DRO. Petitioner's health declines and has a guardian ad litem. Petitioner subsequently dies but the retirement benefits has not been addressed by the courts. 2 -1/2 years later a court date is set to address retirement benefits. Petitioner's estate is now filing a DRO. Will petitioner's alternate payee status flow to her estate in a defined benefit plan? Will there be any ramifications if petitioner's counsel didn't file the DRO while his client was alive?"

"Here is a new one for me. PBGC-covered DB plan, owner plus 1 rank-and-file employee. Client pushed to have the only non-owner participant paid out in 2021 after the employee's termination. Client provided the final salary paid for 2021 based on the final payroll (even had them confirm). The final salary was lower than prior years and did not affect the average compensation. Provided the lump sum amount, and they paid out. So, the plan was covering just the owner for the rest of 2021. Went to PBGC and got an exemption from further coverage effective for the 2021 year. All good. Well, just got the actual 2021 W-2s. The employee's actual salary is much higher than the number I was provided, so it affects the 3-year average compensation; i.e., the employee was underpaid his a lump sum by $100 to $200. No 415 issues whatsoever so no MASDs etc. The question is, what happens with the PBGC exemption? Technically the plan still had a rank-and-file participant as of 12/31/2021 who with a $1.50 monthly accrued benefit and a very small lump sum due. Another question: can they pay out this participant based on the prior distribution election form (i.e., an IRA rollover)?"

"Al, the owner of the company which sponsors the PS-only plan, was taking RMDs and then passed away in 2017. His two sons, who were his 50/50 beneficiaries and who were participants and now became the 50/50 company owners, chose to not take Dad's money out of the plan. An RMD is being calculated on Al's balance each year and paid to each of the sons (split evenly between the two of them). The plan does have the 5-year-rule selected (though I thought it's only applicable if the participant dies before RBD). Is there any limit as to how long the sons can keep this going inside the plan? Is there something that will require them to take Al's money out at some point? The sons are just over 60 themselves, so they have a few years before they hit RMD status on their own accounts."