Lets say I have a plan that is 95% funded in 2008 and qualifies for the transition rule. Therefore, I have no shortfall amortization charge since I was > 92% funded.
However, I think I still owe quarterlies in 2009 because I had a funding shortfall in 2008, even though I didn't have to amortize any of it.
Agree?
Full Version: Confirming if Quarterlies would be required
Agreed
agreed.
How about this.
Facts 1-1-2008:FT = 2,000,000
Assets=3,000,000
FSCOB=1,000,001
TNC=500,000
FSCOB of $500,000 applied
Facts 1-1-2009:FT=2,200,000
Assets=2,800,000
FSCOB=500,001
TNC=600,000
Since as of 1/1/2008, $1 = FT - (Assets - FSCOB) >0, Quarterlies apply for 2009.
Plan Sponsor may:
(a) Pay quarterlies of 125,000 and 100,000 by 9/15/2010
(b) Burn 500,001 of FSCOB as of 1/1/2009
(c) Apply 500,001 of FSCOB as of 1/1/2009 and pay 99,999 by 4/15/2009
(d) Apply 125,000 of FSCOB to each of first four quarterly contributions and then pay 100,000 by 9/15/2010
Only (a) does not require an employer election
And is it any wonder that each morning "they" ask me what day it is?
How about this.
Facts 1-1-2008:FT = 2,000,000
Assets=3,000,000
FSCOB=1,000,001
TNC=500,000
FSCOB of $500,000 applied
Facts 1-1-2009:FT=2,200,000
Assets=2,800,000
FSCOB=500,001
TNC=600,000
Since as of 1/1/2008, $1 = FT - (Assets - FSCOB) >0, Quarterlies apply for 2009.
Plan Sponsor may:
(a) Pay quarterlies of 125,000 and 100,000 by 9/15/2010
(b) Burn 500,001 of FSCOB as of 1/1/2009
(c) Apply 500,001 of FSCOB as of 1/1/2009 and pay 99,999 by 4/15/2009
(d) Apply 125,000 of FSCOB to each of first four quarterly contributions and then pay 100,000 by 9/15/2010
Only (a) does not require an employer election
And is it any wonder that each morning "they" ask me what day it is?
QUOTE (Effen @ Nov 18 2008, 05:37 PM) 
Lets say I have a plan that is 95% funded in 2008 and qualifies for the transition rule. Therefore, I have no shortfall amortization charge since I was > 92% funded.
However, I think I still owe quarterlies in 2009 because I had a funding shortfall in 2008, even though I didn't have to amortize any of it.
Agree?
However, I think I still owe quarterlies in 2009 because I had a funding shortfall in 2008, even though I didn't have to amortize any of it.
Agree?
Agreed, but if the plan is frozen the quarterly is $0 since you have no normal cost and no amortization. (I should add that this assumes that 2009 is funded at 94% or better or that the freeze was in effect for all of 2008).
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.