1)A sole proprietor lawyer has a net Schedule C of 3 year average of $220,000 (after subtracting the pension plan contributions)in a three person husband/wife/brother DB plan. The lawyer also has another totally unrelated business. Do Schedule C losses on the other business count towards reducing earned income for the calculation of the 3 year average pay limit of IRC 415(B)(1)(B)?

2) The plan permits in service distributions upon atttainement of NRD and prior to retirement. Non-periodic distributions have been made every year since he attained NRD 60 to current age 71. Assume a 12/31/99 freeze date for Old Law benefits. In determining the remaining permitted benefit under 415 at age 71, do you adjust the pre-age 65 distributions forward to SSRA 65 using the 75%, 80%, 86.67%, and 93.33% factors; then actuarially increase them using the pre GATT basis from SSRA 65 to age 71; then subtract such from the actuarial equivalent of the $130,000 12/31/99 COLA maximum benefit at SSRA 65; then add the GATT determined lump sum of the actuarially increased $5,000/year 2000 COLA increase?

Last, you test the total age 71 benefit (including the AE of prior distributions) for the 100% of 3 year average pay limit of $220,000 (w/o regard to 401(a)(17))?

3)The wife terminated 12/88 with 3 year pay of $50,000, and the brother 12/31/99 with a 40,000 3 year pay; but have not been paid. The plan will be amended 1/1/2000 to add a post termination COLA to the three year pay per 415(d)(1)(B).
a) the increased benefit is a post 12/7/94 increase, so is subject to GATT lump sum maximums, right?
b)Anyone have the rates for the post termination COLA, per 415(d)(2) and (3)?