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  #1  
Old 10-16-2008, 04:16 PM
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Default Automatic Approval for a Change in Asset Valuation

I assume Revenue Procedure 2000-40 is defunct for single employer plans since the advent of the PPA, at least when it comes to asset valuation. If so, what asset valuation methods are acceptable under PPA. Also, is there an automatic approval for a change in asset valuation, so that it is not a change in the funding method (meaning no application)?

This is a fairly wide open question, so I look forward to the discussion. Thanks!

Last edited by volva yet; 10-22-2008 at 10:24 AM..
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Old 10-16-2008, 04:41 PM
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1) Market Value of Assets
2) Averaging method with no more than 2 years

And I think you're talking about Approvals in Revenue Procedure 2000-40, not rulings.
I know we're waiting for some relief on the asset method but nothing has come out as of yet.
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Old 10-20-2008, 04:42 PM
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Originally Posted by Actiger View Post
1) Market Value of Assets
2) Averaging method with no more than 2 years

And I think you're talking about Approvals in Revenue Procedure 2000-40, not rulings.
I know we're waiting for some relief on the asset method but nothing has come out as of yet.
Revenue Procedure 2000-40 is what led me to this question. Is a change in asset valuation require an application to change the funding method?

Last edited by volva yet; 10-22-2008 at 10:24 AM..
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Old 10-20-2008, 04:47 PM
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Revenue Ruling 2000-40 is what led me to this question. Is a change in asset valuation require an application to change the funding method?
How did a revenue ruling covering these topics (Gross income: Fringe benefits: Employer-provided aircraft: Terminal charges: SIFL rates) lead you in this direction?
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Old 10-21-2008, 08:31 PM
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How did a revenue ruling covering these topics (Gross income: Fringe benefits: Employer-provided aircraft: Terminal charges: SIFL rates) lead you in this direction?
Huh? I have the revenue ruling number at the office, so I'll verify whether that was a typo tomorrow.
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Old 10-22-2008, 08:02 AM
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The number is correct, its just that it is Revenue Procedue 2000-40

I read Revenue Ruling 2000-40, and was very confused why it was required.... until realizing there's a difference between a procedure and a ruling.
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Old 10-22-2008, 10:25 AM
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The number is correct, its just that it is Revenue Procedue 2000-40

I read Revenue Ruling 2000-40, and was very confused why it was required.... until realizing there's a difference between a procedure and a ruling.
Thanks for the correction... the names of these documents can drive me batty some times.

Back to my question...

Is a change in asset valuation require an application to change the funding method?
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Old 10-22-2008, 10:35 AM
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Revenue Procedure 2000-40 is what led me to this question. Is a change in asset valuation require an application to change the funding method?
I see what you did there.
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Old 10-22-2008, 12:10 PM
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Quote:
Originally Posted by colby2152 View Post
Thanks for the correction... the names of these documents can drive me batty some times.

Back to my question...

Is a change in asset valuation require an application to change the funding method?
Yes, a change in the asset method is a change in funding method, for which you need to either apply or use an automatic approval, if available.
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Old 10-22-2008, 03:23 PM
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Yes, a change in the asset method is a change in funding method, for which you need to either apply or use an automatic approval, if available.
When you say, "or use an automatic approval", then does that mean that the plan actuary does not have to apply for the change? Excuse me if I sound dense.
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