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Subject:  defined benefit plan Date:  9/17/2001  6:17 PM
Author:  zims Number:  31918 of 88003

I am retired and my inactive S Corp. is the sponsor of the defined benefit plan. The problem is that the plan is overfunded and there is a 50% penalty plus state and federal tax. The total taxation is close to 90% on the overfunded portion. My retired wife and I are the sole participants and sole principals of the S Corp. Does anyone have any ideas re: the overfunding? Thanks
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