Just want to clarify a few things:
1. For the calculation of the cushion amount - 'The increase in the funding target if expected future salary increases were taken into account':
Under the PUC cost method for a salary-related plan, future salary increases are already taken into consideration for the calculation of the funding target. So the only difference should come from the unlimited 401(a) 17 limit for PBGC covered plans?
2. For plans with no more than 100 participants - 'ignore the benefit increases to HCEs due to plan amendments adopted or effective during the previous two years...'
This only applies to non-salary-related plans, correct?
Thank you!
1. For the calculation of the cushion amount - 'The increase in the funding target if expected future salary increases were taken into account':
Under the PUC cost method for a salary-related plan, future salary increases are already taken into consideration for the calculation of the funding target. So the only difference should come from the unlimited 401(a) 17 limit for PBGC covered plans?
2. For plans with no more than 100 participants - 'ignore the benefit increases to HCEs due to plan amendments adopted or effective during the previous two years...'
This only applies to non-salary-related plans, correct?
Thank you!
Farber's Manual, Single Employer Plan Deductible Limits
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