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Our services go a long way toward reducing cost and risk

At First American Bank, we help many companies set up Defined Benefit Plans, and then we call on our many years of experience to assist you as plan administrator. Our dedicated professionals use leading industry practices and cutting-edge technology to deliver outstanding customer service and ensure compliance and accuracy. Our services include:

  • Review of employee census data to determine eligibility under the terms of the plan
  • Prepare actuarial valuation to determine contribution costs
  • Compliance testing including: Minimum participation; benefit limits; coverage; top heavy determination and required minimum benefit; deduction limits
  • Review and update participant vesting and prepare participant benefit statements
  • Calculate and certify the plan Adjusted Funding Target Attainment Percentage
  • Prepare Tax Form 5500 with related schedules, including Schedule SB and participant notice
Optional Administrative Services
  • Calculate contributions for self-employed individuals
  • General nondiscrimination testing for cash balance plans and combination defined benefit and defined contribution plans
Other Services
  • Prepare annual Pension Benefit Guaranty Corp. premium filing forms
  • Prepare comprehensive valuation booklet
  • Actuarial computations for accounting requirements
  • Actuarial cost impact studies for plan amendments, law changes and collective bargaining negotiations
  • Calculate participant retirement and deferred vested benefits
  • Calculate required minimum distributions
  • Assist with benefit distributions to retired and terminated participants
  • Tax Form 1099-R preparation
  • Represent plan before IRS, DOL, and PBGC
  • Coordinate requirements to close plan and distribute benefits
Installation Services
  • Prepare actuarial analysis
  • We offer a pre-approved document that may be used in most plan designs.
First American Bank is a full-service bank with locations in Illinois, Wisconsin and Florida.
Disclosures

Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Guaranteed by Any Government Agency | Not a Bank Deposit
The IRS requires 20% withholding on all qualified plan distributions eligible for rollover to an IRA or another qualified plan. You will report the distribution as ordinary income on your personal tax return. Depending on your personal tax bracket, you may be required to pay additional taxes on the distribution or you may be entitled to a refund. If the additional amount of tax due is substantial, you may be required to make estimated tax payments. You may also be required to pay state income taxes. You should consult your personal tax advisor before making decisions regarding your distribution.

Prior to 2020, you were required to start taking Required Minimum Distributions (RMDs) by April 1 of the year following the year in which you attained age 70 ½. That rule still applies if you attained age 70½ by the end of 2019. Once you are required to begin taking RMDs, you must continue. For 2020, the SECURE Act increased the age to begin RMDs to age 72 and then subsequently with the passing of SECURE Act 2.0 beginning in 2023, the age has been raised again. The schedule below outlines at what age you must begin taking RMDs.

Date of birth before 7/1/1949, RMD starts at age 70 ½. Date of birth 7/1/1949 to 12/31/1950, RMD starts at age 72. Date of birth 1/1/1951 to 12/31/1959, RMD starts at age 73. After 12/31/1958, RMD starts at age 75.

The same April 1 deadline applies. Thereafter, you must take RMDs annually on or before December 31. Note, two required distributions will be issued your first year if you wait until the period January 1 to April 1 to begin your RMDs. You may avoid two taxable distributions in the first year by taking your first withdrawal on or before December 31 of the year in which you attain the applicable age as shown above.

However, if you are still working, you are not required to begin RMDs from your employer sponsored plan until April 1 of the year following the year in which you terminate employment. This exception does not apply if you own more than 5% of the employer, nor does it apply to IRAs.

The annual deferral may not exceed the lesser of:

a. $23,000 for 2024;

b. the maximum deferral amount allowed under the terms of the plan; or

c. the amount that allows the plan to meet the required nondiscrimination tests.

In addition, if you attain age 50 or older by December 31, you may defer an additional $7,500 catch up contribution.
If a plan accepts rollover distributions from other qualified plans, it may also allow for employees to make a rollover contribution before they meet the plan's minimum age and service eligibility requirements. These employees would be considered 'limited participants' in the plan.
Yes, the additional 10% tax applies, with limited exceptions. Exceptions include distributions that are made to a participant after termination of employment after attainment of age 55, distributions that are attributable to an employee being disabled, and distributions that are made to cover deductible medical expenses.

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