Jakyasar Posted June 13, 2021 Share Posted June 13, 2021 Hi I need to confirm the following as per my understanding. Looking into a 2020 db plan design with providing prior year service. Plan has a minimum required contribution (MRC) based on amortization of funding target. Not worried about MRC as they want to maximize contribution. Per law, 15 year amortization is effective for plan years beginning after 12/31/21 with an option of election for 3 prior years. I am thinking to elect to have 15 year amortization starting with 2020 plan year and also have the sponsor to adopt the election (election is required to adopt 15 years, as per my understanding). Am I missing anything here? Thank you, Link to comment Share on other sites More sharing options...
Calavera Posted June 14, 2021 Share Posted June 14, 2021 If you are not worried about MRC, why do you need 15 year amortization? Link to comment Share on other sites More sharing options...
Jakyasar Posted June 14, 2021 Author Share Posted June 14, 2021 Because I want to start with 15 from the beginning and not worry about later changes. Thank you. Link to comment Share on other sites More sharing options...
Calavera Posted June 15, 2021 Share Posted June 15, 2021 Then you are not missing anything. Link to comment Share on other sites More sharing options...
Jakyasar Posted June 17, 2021 Author Share Posted June 17, 2021 Thank you Link to comment Share on other sites More sharing options...
Jakyasar Posted June 25, 2021 Author Share Posted June 25, 2021 A follow up question, sorry if discussed before If I am electing to use any of the ARPA-21 provisions for funding/AFTAP/amortization for 2020, do I need to attached an addendum to the Schedule SB for 2020? For example, I used the 15 year amortization for 2020 for a brand new plan. SB, line 41a has reference to PRA 2010 only. Another example, I have an election to switch to ARPA-21 for funding for an old plan. Thank you Link to comment Share on other sites More sharing options...
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