; FAQ 610: Minimum distributions as offset to benefit

FAQ 610: Minimum distributions as offset to benefit


Can ASC determine a benefit offset for prior distributions?


If you are referring to minimum distributions (or any prior distributions from a defined benefit plan), the following steps are recommended:

1) Calculate the accrued benefit represented by the distribution. Note that for multiple distributions, calculate a cumulative accrued benefit amount.

2) Enter the amount from Step 1) as an offset in all three Offset to fields in the participant's Projected Benefit screen (Benefits \ PROJBENF).

3 ) Adjust the participant's Prior Accrued Benefit (Benefits \ ACCRBENF) because the system will not allow the current accrued benefit to be less than the prior accrued benefit.

The system will calculate the projected benefit and accrued benefit and offset them by the cumulative accrued benefits that were "distributed."