Understanding Optional Forms of Payment Results

Optional forms of payment results are an end product of a calculation; you pick up the results when you prepare to start making pension payments.

The system also uses optional forms of payment information when applying Section 415 limits. The 415 limits function, which applies Internal Revenue Code limits across multiple plans, uses the optional forms of payment results as the source of its benefit information. If the benefit must be limited, the 415 limits function adds the limited amounts to the optional forms of payment results.

Because you can set up multiple optional forms of payment function results for a single benefit, you always mark one form set in each qualified plan for use by the 415 limits function. Because 415 limits are based on the single life annuity (SLA) form, this form set must include an SLA regardless of whether you actually offer that form to employees.