I have a first year cash balance plan using Unit Credit with an end of year valuation starting in 2007. They put in $100,000 in during the year (2007) and was expected to earned $400 in interest. The actual gain was only $100.

Should a gain/loss amortization base be created in the first year?
What should my assets be on my schedule be for 1(b)(1 and 2)?

No experience gain/loss in the first year of the plan.

Current value of assets = Market Value less contribution attributable to 2007 = 100.

Assuming asset valuation method = market value, 1b(2) = 100.

Thank you.

You're welcome.

Some would argue that the assets are reduced by the contribution plus interest credits not just the contribution. You definitely do that for 2008 but again, some would argue that for pre-2008 as well.