What is a Benefit Offset?
A benefit offset is a set of circumstances that result in the complete or partial loss of retirement plan benefits. Often, this loss has to do with the fact that funds were borrowed from some type of retirement account, and were never repaid. Federal regulations allow providers to withhold up to 10% of the face value of the plan, when a beneficiary ends up owing money to a plan. Also, a benefit offset can occur when the beneficiary also has another source of benefits that must be taken into account. Here are some examples of how the benefit offset can occur, and what should be done to prevent the occurrence. When it comes to retirement plans, many people opt for a 401K plan. One of the advantages about this type of plan is that it is possible to borrow money from the balance and then pay it back at a later date. Unfortunately, beneficiaries don’t always get around to repaying the full amount of the loan. At the point of retirement, the remaining balance is deducted from the benefits th
A benefit offset is a set of circumstances that result in the complete or partial loss of retirement plan benefits. Often, this loss has to do with the fact that funds were borrowed from some type of retirement account, and were never repaid. Federal regulations allow providers to withhold up to 10% of the face value of the plan, when a beneficiary ends up owing money to a plan. Also, a benefit offset can occur when the beneficiary also has another source of benefits that must be taken into account. Here are some examples of how the benefit offset can occur, and what should be done to prevent the occurrence. When it comes to retirement plans, many people opt for a 401K plan. One of the advantages about this type of plan is that it is possible to borrow money from the balance and then pay it back at a later date. Unfortunately, beneficiaries don’t always get around to repaying the full amount of the loan. At the point of retirement, the remaining balance is deducted from the benefits
