Defined Benefit Plan networth calculation...nelsona?

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Mach7
Posts: 166
Joined: Sun Dec 11, 2011 3:19 pm

Defined Benefit Plan networth calculation...nelsona?

Post by Mach7 »

I have a company Defined BENEFIT plan (Canadian corp) where i am employed.

I have been in the plan since 2003. hOW do i calculate the networth of the plan in order to calculate my exit tax for US relingquishment...(to determine my expat status)?

Also....do these plans fall under 3520/3520a reporting requirments to the IRS ??
Mach7
Posts: 166
Joined: Sun Dec 11, 2011 3:19 pm

Post by Mach7 »

Just doing some research..and a lot of individuals say to multiply your montly income by 18, or yearly by 15 for a rough estimate. In other words for every 100 dollars of pension income you receive. you multiply this amount by 18k in order to acheive the networth of the plan.

So...in looking at what my pension would give me on a monthly basis (if I liquidated it right now..(or retired right now), my company pension calculator says i would receive $1017 per month (one thousand and seventeen dollars)..therefore if using this 'rule of thumb' my company defined pension plan would net worth (as of today) approx. 180k ?

Does this sound like a reasonable calculation?

I am using what is referred to as the 'rein rule of thumb' for calculating a defined pension networth.

Am i on the right track here.

Thanks to all in adavance :)
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