luissaha Posted February 22, 2011 Share Posted February 22, 2011 A plan in critical status adopted a rehabilitation plan to forestall insolvency (i.e., the plan is not reasonably expected to emerge from critical status). It is likely the plan will have a funding deficiency next year. It appears under IRC 412(b)(3) that if a plan is in critical status, has adopted a rehab plan, and complies with the rehab plan, the minimum funding rules of IRC 412 do not apply. Nevertheless, I have heard some practitioners take the position that IRC 412(b)(3) is only applicable for critical plans that have adopted a rehab plan that will get them out of critical status within the rehab period. To my knowledge there is no guidance from the IRS yet on this issue, but I imagine many plans are in a similar situation. Has anyone heard anything on this? Any help would be appreciated. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now