Cash Balance Plan is frozen 1/1/07 and terminated 12/31/07. They did not fully fund the 2006 contribution - and are paying the excess tax on the contribution. They also owe a little contribution in 2007 - which isnt funded yet. They want to pay out employees. Can they pay out the employees owed - by reducing the owners payouts? I didnt know if you could do that for a cash balance plan? There isnt anything in the Corbel document that allows for that. They are not PBGC covered.
Thanks