I've a beginning of the year DB plan. The termination date was 4/30/04. Originally we planned on terminating the plan as of 12/31/03, but it was held up.

On 1/1/2003, the required contribution was, lets say, $60,000. The unfunded liability was, lets say, $200,000. Around 11/30/2003, the client put into the plan $200,000 to fully fund the plan so that the termination process could begin. Well, since we couldn't terminate during that year, how do I report the excess contribution that was made during the 2003 year?

I'm sure I didn't state all the facts, so I'll be ready for some questions.

Thanks ahead of time,
Andrew

I have to assume that this plan is covered by the PBGC and the $200,000 was an amount to satisfy the shortage in plan liabilities versus assets. Why the $200,000 was put in in 11/03 is beyond me. It was not necessary (and one could argue not appropriate) to put it in then "so that the termination process could begin".

Now I would ask why is the $200,000 necessarily above the maximum deductible limit? Have you tried looking at the unfunded current liability run using the lowest available interest rate (4.98% for 2003)?

Are we assuming the sponsor's fiscal year is the same as the PY?