Hello all,
Remember during late 2008 there was all the talk about deemed elections to reduce COB to raise AFTAP etc. Well, its been a while and now that we have some better ground to stand on I would like some clarification.
If 2008 AFTAP is < 80%, you may not use the 1/1/2009 COB/PFB to reduce the required contribution due for the 2009 plan year... TRUE OR FALSE?
If 2008 AFTAP is 79% and the 1/1/2009 COB/PFB are high enough so that if a portion was applied to your assets you would have what is called a mandatory burn or deemed election...this mandatory burn is applied at 1/1/2009 to increase your 1/1/2009 assets to raise the 2008 AFTAP as of 1/1/2009... TRUE OR FALSE?
Please stop me if I have a misconception or explain if false.
Thanks in advance.