Independent Actuaries Blog Category: Defined Benefit Plans

Have You Noticed All of the Participant Notice Requirements?

There are potentially more participant notices that apply to a retirement plan than can be counted on both hands. Not all notices apply to all types of plans and some only apply to certain participants. Some are required quarterly, some … Continue reading

Is it Better to Take Monthly Pension Payments or a Lump Sum?

The decision to take a monthly pension payment at retirement or to receive a one-time lump sum after departing your company depends on a number of variables. Upon quick review, taking the lump sum can provide you with more flexibility whereas … Continue reading

What Can You and Jeb Bush Have in Common?

A CPA acquaintance of mine recently forwarded this article to me (I had missed it when it was first published). The article reports that GOP presidential candidate Jeb Bush contributed an average of $350,000 per year into a defined benefit pension plan, … Continue reading

How Do You Balance a Budget?

  Q: How do you balance a budget? A (from Congress): Reduce future pension plan contributions. Once again pension contributions are connected to budget deals in Washington, DC. The Bipartisan Budget Act of 2015 (BBA 2015) extends the interest rate … Continue reading

IRS Prohibits Lump Sum Offerings to Current Retirees

On July 9, 2015, the IRS issued notice of their intent to amend regulations prohibiting defined benefit plans from offering a lump sum option to participants already in pay status (Notice 2015-49). At first glance, this seems like an extreme … Continue reading

IRS Announces Pension Plan Limits for 2015

Believe it or not 2014 is quickly approaching its end and that means updated retirement plan limits. Earlier this week the IRS announced these new limits for 2015. Some limits increased from 2014 to 2015, and some stayed flat. Highlights include: … Continue reading

Expanding Possibilities for Cash Balance Plans

On September 19th the IRS issued both new proposed regulations and final regulations that update regulations originally issued in proposed form in 2010 covering Cash Balance and other hybrid pension plans. While the IRS did not address all questions left … Continue reading

Utilizing a Defined Benefit Plan in Business Transitions

In August, Karen Dunn, co-owner of Independent Actuaries, Inc., presented information on Utilizing a Defined Benefit Plan in Business Transitions. Several clients and colleagues attended the presentation which covered several topics, including: A general overview of Defined Contribution vs. Defined … Continue reading

Building Highways through Pension Funding Relief

As of today, it looks like the much debated H.R. 5021 – Highway and Transportation Funding Act of 2014 is finally on the brink of becoming law. What does this have to do with retirement plans? The expenditures in the … Continue reading

IRS Updates its 401(k) Plan Fix-It Guide

The IRS has updated its 401(k) Plan Fix-It Guide. You can find the Guide at http://www.irs.gov/pub/irs-tege/401k_mistakes.pdf. While the Guide’s 52 pages can seem intimidating, the first three pages contain a chart of the most common errors in plan operation. Review … Continue reading