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Old 02-03-2008, 03:16 PM
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Default IRS Notice 2008-21

Here is Notice 2008-21, only six pages.

This basically says the IRS will finalize the regs some day, and you should do 2008 calculations based on the law and proposed regulations. The final regulations will only apply for 2009 plan years.

The other important item is some relief for end of year valuations and the AFTAP calculation.
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Old 02-04-2008, 12:08 PM
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Quote:
Originally Posted by Rick_G View Post
Here is Notice 2008-21, only six pages.

This basically says the IRS will finalize the regs some day, and you should do 2008 calculations based on the law and proposed regulations. The final regulations will only apply for 2009 plan years.

The other important item is some relief for end of year valuations and the AFTAP calculation.
In your opinion, do you have permission by 10-1-08 to certify the 2008 AFTAP based on the 12/31/07 EOY valuation? cite?
If so, do you use the same logic and adjustments made for the 2007 prior AFTAP that were based on the 12/31/06 valuation?
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Old 02-06-2008, 03:35 PM
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In your opinion, do you have permission by 10-1-08 to certify the 2008 AFTAP based on the 12/31/07 EOY valuation? cite?
I don't think so. Notice 2008-21 only addresses calculation of the 2007 AFTAP:

Code:
In the case of a plan that, under § 430(g), has a valuation date that is 
the last day of the plan year for each of the plan years beginning in 
2006, 2007, and 2008, for purposes of applying the benefit limitations of 
§ 436 for the plan year beginning during 2008, a certification of the 
plan’s AFTAP for the prior plan year (the 2007 plan year) is permitted
to be made by determining the FTAP for the 2007 plan year as follows:

The IRS is thinking about allowing similar calculation of the 2008 AFTAP for a plan with an end of year valuation date:
Code:
If statutory authority similar to that in these technical correction provisions 
is enacted, the IRS and the Treasury Department are considering including 
rules in the final regulations substantially similar to those set forth in 
Part III(B) for the determination of the prior year AFTAP for a plan with 
an end-of-year valuation date with respect to plan years after 2008.
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Old 02-06-2008, 03:53 PM
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Many actuaries over on the COPA forum have decided they can pretty much do anything reasonable for 2008. They will be using the 12/31/07 valuation results, as you suggested.
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