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IRS Calls 'Unreasonable' a Type of Aggregate Entry Age Normal Funding Method for DB Plans
Internal Revenue Service [IRS]
[Official Guidance] June 30, 2003
Excerpt: [T]he aggregate entry age normal funding method that determines the normal cost per plan participant by dividing the sum of the present values (determined as of each participant's entry age) of each participant's projected benefits by the sum of the present values (determined as of each participant's entry age) of an annuity for each participant equal to 1 per year payable from the participant's entry age until ... retirement age does not constitute a reasonable funding method ...
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