If plan termination date is 8-1-08(cal yr plan)how does one file with IRS at this point.
Dont we have to do an 2008 val first;since there will be accrual for 2008?
Full Version: plan termination
The two things are not really related. First, you are never required to file the plan terminatinon with the IRS. If the plan is covered by the PBGC, you must file with them. Why do you ask "how" does one file... what has changed to make that process any different than before?
Yes, if the plan terminated on 8/1/2008 you will need to do a 2008 valuation. When you prepare the valuation is up to you, as long as it is done in time for them to make a contribution before the due date if necessary.
Yes, if the plan terminated on 8/1/2008 you will need to do a 2008 valuation. When you prepare the valuation is up to you, as long as it is done in time for them to make a contribution before the due date if necessary.
QUOTE (Effen @ Dec 3 2008, 02:21 PM) 
The two things are not really related. First, you are never required to file the plan terminatinon with the IRS. If the plan is covered by the PBGC, you must file with them. Why do you ask "how" does one file... what has changed to make that process any different than before?
Yes, if the plan terminated on 8/1/2008 you will need to do a 2008 valuation. When you prepare the valuation is up to you, as long as it is done in time for them to make a contribution before the due date if necessary.
Yes, if the plan terminated on 8/1/2008 you will need to do a 2008 valuation. When you prepare the valuation is up to you, as long as it is done in time for them to make a contribution before the due date if necessary.
thanks.
My question was really this:
is it correct that we cannot file with IRS until we do 2008 val;which seems a bit awkward logistically no?
Again, you aren't required to file the termination with the IRS so how could you be required to do the funding valuation first?
Also, the funding valuation isn't final until the Schedule SB is filed. Therefore, although you may be preparing the numbers that will be used on the SB before hand, it isn't a final val (and can therefore be changed) until the SB is actually filed.
It is a good idea to run a val to see if the min/max is sufficient to meet any existing shortfalls, or to inform the client of the contribution requirements, or to determine if the assets will be sufficient, but it doesn't really impact the determination letter process, since it isn't even required.
Good idea - yes.
Required - no.
Also, the funding valuation isn't final until the Schedule SB is filed. Therefore, although you may be preparing the numbers that will be used on the SB before hand, it isn't a final val (and can therefore be changed) until the SB is actually filed.
It is a good idea to run a val to see if the min/max is sufficient to meet any existing shortfalls, or to inform the client of the contribution requirements, or to determine if the assets will be sufficient, but it doesn't really impact the determination letter process, since it isn't even required.
Good idea - yes.
Required - no.
QUOTE (Effen @ Dec 3 2008, 07:21 AM)
If the plan is covered by the PBGC, you must file with them.
Even being covered by the PBGC doesn't require you to file with the IRS.
Blinky - you are correct. I ment if the plan is covered by the PBGC, then you must file the termination with the PBGC.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.