I have a short plan year (7/1/2009 to 12/31/2009) beginning of year valuation. I could only find in the regulations that the amortization payment is prorated for the short plan year.
Did I miss it or is the Target Normal Cost for the full year (not prorated)?
Full Version: Short plan year - Target Normal Cost
QUOTE (Dinosaur @ Mar 1 2010, 07:43 AM) 
I have a short plan year (7/1/2009 to 12/31/2009) beginning of year valuation. I could only find in the regulations that the amortization payment is prorated for the short plan year.
Did I miss it or is the Target Normal Cost for the full year (not prorated)?
Did I miss it or is the Target Normal Cost for the full year (not prorated)?
If your benefit accrual in the short year is smaller because it is a short year, then your TNC is smaller; but the basis of the TNC is to pay for the benefit being earned in the period.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.