Brand new plan with short PY for the first year.
Is one required to pro-rate charges/credits as is the case on plan termination (Rev. Rul 79-237)?
To my thinking, one is calculating annual contributions payable from the valuation date over the working lifetime of the partcipants. So for an EOY val on 12/31 say, one is calculating annual contributions payable from 12/31, and it is irrelevant if the plan is a full or short plan year?
What if the plan year is changed for an exsiting plan?
Full Version: Short PY & Min/Max contributions?
Just curious, but why would you have a short plan year for the first plan year?
QUOTE (Effen @ Aug 22 2008, 08:38 AM) 
Just curious, but why would you have a short plan year for the first plan year?
I didn't. I got this plan from a TPA where the business started June x, say, and the TPA entered the first plan year to be June x to December 31st, thinking that the plan start must be on or after the business start date!
(My understanding is the plan can be effective from Jan 1 even if the sponsor commenced business after Jan 1).
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