metsfan026 Posted January 24, 2023 Share Posted January 24, 2023 Good afternoon! We took over a Cash Balance Plan and for '21 it appears they were using these interest rate s (they used the corridors under BBA): However, I see that this table hasn't been updated for Plan Years Beginning in 2022. Does anyone know when these will be updated, or what can be used instead? Thanks in advance! Link to comment Share on other sites More sharing options...
C. B. Zeller Posted January 24, 2023 Share Posted January 24, 2023 That table won't be updated, since the pre-ARP segment rates are no longer available to be used for plan years starting in 2022. What is the exact definition of interest crediting rate in the plan document? Does Notice 2021-48 section III.B.3 shed any light on your situation? ugueth 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Lou S. Posted January 24, 2023 Share Posted January 24, 2023 Try here (we just switched to the ARP/IIJA Table for the applicable year of change) https://www.irs.gov/retirement-plans/pension-plan-funding-segment-rates Link to comment Share on other sites More sharing options...
metsfan026 Posted January 24, 2023 Author Share Posted January 24, 2023 22 minutes ago, Lou S. said: Try here (we just switched to the ARP/IIJA Table for the applicable year of change) https://www.irs.gov/retirement-plans/pension-plan-funding-segment-rates Thanks! Which ones are you using: Link to comment Share on other sites More sharing options...
Lou S. Posted January 24, 2023 Share Posted January 24, 2023 Those are the ones. Link to comment Share on other sites More sharing options...
metsfan026 Posted January 24, 2023 Author Share Posted January 24, 2023 Just now, Lou S. said: Those are the ones. Thanks, so are you using 4.75 / 5.18 / 5.92? Or just the 5.00 / 5.45 / 6.23? Link to comment Share on other sites More sharing options...
metsfan026 Posted January 24, 2023 Author Share Posted January 24, 2023 28 minutes ago, C. B. Zeller said: That table won't be updated, since the pre-ARP segment rates are no longer available to be used for plan years starting in 2022. What is the exact definition of interest crediting rate in the plan document? Does Notice 2021-48 section III.B.3 shed any light on your situation? The document defines them as: The “Code Section 417(e) interest rate” means the adjusted first, second and third segment rates applied under Code Section 430(h)(2)(C), computed without regard to 24 month averaging under Code Section 430(h)(2)(D) and without regard to the adjustment for the 25-year average segment rates provided in Code Section 430(h)(2)(C)(iv). Link to comment Share on other sites More sharing options...
Lou S. Posted January 24, 2023 Share Posted January 24, 2023 We're defaulting to 95% corridor of 4.75/5.18/5.92 rates unless there is some reason not to. Link to comment Share on other sites More sharing options...
metsfan026 Posted January 24, 2023 Author Share Posted January 24, 2023 1 minute ago, Lou S. said: We're defaulting to 95% corridor of 4.75/5.18/5.92 rates unless there is some reason not to. Thank you! Link to comment Share on other sites More sharing options...
C. B. Zeller Posted January 24, 2023 Share Posted January 24, 2023 I realized I assumed you were talking about a plan that defines interest crediting rate with reference to the funding segment rates. But you didn't actually say that. So, when you said "they were using these interest rate s," using them for what purpose? Lou S. 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Lou S. Posted January 24, 2023 Share Posted January 24, 2023 That's a good point. My comments were all related to funding rates for the valuation. So if you're asking about something else, then my comments might not have relevance. Link to comment Share on other sites More sharing options...
metsfan026 Posted January 25, 2023 Author Share Posted January 25, 2023 6 hours ago, Lou S. said: That's a good point. My comments were all related to funding rates for the valuation. So if you're asking about something else, then my comments might not have relevance. Sorry, I should've been more clear. It was the funding rates for the valuation. Thank you for your help! Link to comment Share on other sites More sharing options...
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