A Calendar yr plan is terminating effective 8/31/2003.

The valuation date is BOY (i.e. 1/1/2003) and the annual normal cost under the Ind Agg method is $100,000.

Per Rev Rul 79-237, for Section 412, Charges and Credits are pro-rated from BOY to the termination date.

So for the above, the minmum required would be $66,667 plus interest to EOY & late quarterly charge, if any.

Is there any such pro-rating requirement for determining the deductible amount S404(a)(a)(iii) i.e. deductible = Normal Cost + 10 yr bases' charges and credits = $100k +0 = 100k.

Your thoughts please.

404 costs are not prorated. See this recent discussion.

http://www.benefitslink.com/boards/index.p...ST&f=22&t=19852

Thanks Blinkey.

That confimrs my own position.