Comments for The VIA retirement plan blog http://pensionblog.com Thoughts on plan design, pensions and retiree medical Wed, 04 Jan 2012 20:34:34 +0000 hourly 1 http://wordpress.com/ Comment on Off-Year GASB 45 Accounting by Rita http://pensionblog.com/2010/05/13/off-year-gasb-45-accounting/#comment-533 Wed, 04 Jan 2012 20:34:34 +0000 http://pensionblog.com/?p=279#comment-533 Hi Mark,

An interesting read on off-year valuations and ARC implications. Can you please send me the memo that you had indicated in your blog. I am trying to see how I can adjust the ARC when level % of pay is used for off-year valuations.
Thanks a bunch.

Cheers
Rita

]]> Comment on 2011 PBGC Reportable Event Waivers by Déjà vu: PBGC Extends Reportable Event Relief for 2012 « The VIA retirement plan blog http://pensionblog.com/2010/12/07/2011-pbgc-reportable-event-waivers/#comment-518 Mon, 12 Dec 2011 13:48:40 +0000 http://pensionblog.com/?p=562#comment-518 [...] a year to the day after providing relief for the 2011 plan year, the PBGC released PBGC Technical Update 11-1. This notice provides guidance for the 2012 plan year [...]

]]> Comment on Plan Sponsors Should Prepare Now for 2012 Pension Interest Rates by Steering Clear of Pension Benefit Restrictions « The VIA retirement plan blog http://pensionblog.com/2011/10/21/plan-sponsors-should-prepare-now-for-2012-pension-interest-rates-2/#comment-511 Fri, 25 Nov 2011 16:50:44 +0000 http://pensionblog.com/?p=998#comment-511 [...] asset performance and declining valuation interest rates during 2011 will cause some pension plans to face benefit restriction issues for the first time in [...]

]]> Comment on What’s the Impact of 2012 IRS Retirement Plan Limits? by larry reynolds http://pensionblog.com/2011/10/20/whats-the-impact-of-2012-irs-retirement-plan-limits/#comment-377 Tue, 25 Oct 2011 20:52:34 +0000 http://pensionblog.com/?p=970#comment-377 please place me on mailing list

]]> Comment on The Value of Tax Deferral by The Value of Tax Deferral http://pensionblog.com/2011/10/19/the-value-of-tax-deferral/#comment-367 Mon, 24 Oct 2011 14:52:14 +0000 http://pensionblog.com/?p=957#comment-367 [...] What about a Roth IRA or 401(k)?  As it turns out, Roth and regular 401(k) results are identical if your marginal tax rates are equal at contribution and withdrawal.  Roth is better if your marginal rate at withdrawal is higher than at contribution time; otherwise a regular 401(k) is better.  And they both blow the taxable account out of the water. via pensionblog.com [...]

]]> Comment on Deferred comp plans: when they’re a great choice, and when they’re not by Jim van Iwaarden http://pensionblog.com/2011/10/12/deferred-comp-plans-when-they%e2%80%99re-a-great-choice-and-when-they%e2%80%99re-not/#comment-318 Fri, 14 Oct 2011 21:54:24 +0000 http://pensionblog.com/?p=934#comment-318 Bruce, thanks for your comments!

Qualified plans do have the limits you describe, but they’re much higher than most people realize. With a base contribution of 5-7½% of pay for rank-and-file employees, deductions in excess of $200,000 are possible with a cash balance / profit sharing / 401(k) combination. See an explanation at http://vaniwaarden.com/cash-balance-plans.

401(k)’s are qualified plans, so they’re deductible with a 2011 limit of $16,500 plus $5,500 catchup at 50 and above. A match or profit sharing contribution is needed to reach the $49k defined contribution plan limit. NQDC is unlimited but not deductible.

]]> Comment on Deferred comp plans: when they’re a great choice, and when they’re not by Bruce Brumberg http://pensionblog.com/2011/10/12/deferred-comp-plans-when-they%e2%80%99re-a-great-choice-and-when-they%e2%80%99re-not/#comment-317 Fri, 14 Oct 2011 19:21:37 +0000 http://pensionblog.com/?p=934#comment-317 Some good short thoughts on nonqualified deferred compensation (NQDC) compared to qualified plans. I would say the main reason to do an NQDC plan is that the qualified plans have limits on how much you can contribute and how much income you can base the contribution on. For many high-earners, this is just not enough to put away for retirement. Plus NQDC plans can allow distributions when you’re still working.

You might be interested in looking at an independent site devoted to nonqualified plans at http://www.mynqdc.com/.

There is specific FAQ that goes through the comparison between qualifed and nonqualified retirement plan rules and flexiblity:

How does NQDC differ from regular deferred compensation arrangements, such as 401(k) plans?

link to it at: http://www.mynqdc.com/faqs/how-does-nqdc-differ-from-regular-deferred-compensation-arrangements-such-as-401k-plans/

]]> Comment on Final Hybrid Plan Regs: Market Rate of Return by What’s Important for Plan Sponsors in IRS Hybrid Plan Notice 2011-85 « The VIA retirement plan blog http://pensionblog.com/2010/10/25/final-hybrid-plan-regs-market-rate-of-return/#comment-312 Thu, 13 Oct 2011 14:40:46 +0000 http://pensionblog.com/?p=512#comment-312 [...] The scope of the announcement is relatively narrow and only applies to certain hybrid plan rules and regulations. These rules were spelled out in a combination of proposed and final regulations issued in October 2010. [...]

]]> Comment on Now is the Time for Retirement Plan Decisions by What’s Important for Plan Sponsors in IRS Hybrid Plan Notice 2011-85 « The VIA retirement plan blog http://pensionblog.com/2011/10/07/now-is-the-time-for-retirement-plan-decisions/#comment-311 Thu, 13 Oct 2011 14:29:47 +0000 http://pensionblog.com/?p=887#comment-311 [...] balance and PEP plans). The notice is pretty technical (of course), but the IRS also published a nice summary of what’s affected by the relief. Here’s what it means for plan [...]

]]> Comment on Now is the Time for Retirement Plan Decisions by Now is the Time for Retirement Plan Decisions http://pensionblog.com/2011/10/07/now-is-the-time-for-retirement-plan-decisions/#comment-306 Wed, 12 Oct 2011 19:21:06 +0000 http://pensionblog.com/?p=887#comment-306 [...] Note: We’ll be focusing on cross-tested profit sharing plans and cash balance plans. These plans allow owners to make large tax-deferred retirement contributions in exchange for providing a generous employee retirement allocation (usually 5% of pay if there’s only a profit sharing plan, or 7.5% of pay if there’s a cash balance plan too). via pensionblog.com [...]

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