How does an employer initiate a benefit distribution for a plan participant?
The necessary forms for requesting a distribution is included in the employer’s Operations Plan Retirement Manual. After a participant terminates employment, the participant usually requests payment of benefits from the Plan. This request is made either to the employer or Plan trustee. The payout distribution form is completed by the employer. The completed forms are forwarded by fax or mail to the Plan’s record keeper (Benetech).  Top 401(k) QUESTIONS: 21. Why is the 401(k) plan that works in concert with a defined benefit plan a Deferral Only Plan? The defined benefit plan usually has a contribution requirement greater than 25% of compensation considered for deductions. 401(k) deferrals and catch-up contributions are not considered in the 25% limit on deductions. Therefore there are no restrictions on deductions. If a profit sharing contribution had been made in addition to the defined benefit contribution, the profit sharing contribution would not be deductible and a 10% exc
