What is affected by the FTAP % to be reported on line 14 of 2008 Sch SB?

I need to decide the amount of credit balance reduction (aka how much credit balance to burn)? Reduce enough so FTAP is at least x%(?) or reduce enough so AFTAP is at lease 60% and don't worry about FTAP?

Plan's FTAP & AFTAP are less than 80% even if the credit balance is reduced to zero. So the question is, should I worry about keeping only the AFTAP 60%+ or does the FTAP also has to be x%+ for purposes other than S436.

(AFTAP is greater than FTAP because FT for AFTAP is multiplied by the applicable % (<100) and assets are not reduced for credit balances.

AFTAP as of 1/1/2008 would govern whether quarterly contributions are due for 2009 and whether or not you can apply credit balance in 2009. In your case, it won't matter. And of course, if less than 60%, then accruals had to be frozen in 2008. Perhaps, I'm misunderstanding your question.

This said, you indicated "I need to decide . . ." Under the proposed regs on underfunded plans (August 31, 2007), it was my understanding the plan sponsor had to elect the burn in writing and further had to so elect by the end of the 2008 plan year.

As I stated in my subequent post on AFTAP, for the EOY Val, the FTAP & AFTAP on line 14 & 15 as computed in accordance with the instructions don't pertain to 2008 (& probably 2009 also).

My 2008 FTAP & AFTAP were based on the 12/31/07 valuation numbers and were well over 100% so I don't need to burn any credit balances for 2008. I would, howver, need to burn some for 2009's FTAP & AFTAP - hence my statement "I need to decide..." (which the employer will authorize, of course).

Thanks for clarifying (now I don't have to report you to the EA police!). So, unless this is a frozen plan, the burn would take place automatically to get the AFTAP to 60%.