Present value of receivable contributions

[Blinky the 3-eyed Fish]

I disagree with everyone. Ok, just kidding, I agree too. I am such a sheep.

[Effen]

Has anyone seen anything regarding if the present value of contributions paid after the valuation date for the prior year? Do they need to also reflect the added discount if there were missed quarterlies?

For example, let’s say the employer misses the 1/15/2010 quarterly and makes the final contribution on 5/15/10. When I determine my assets for the 1/1/10 valuation, I know I add in the present value of the 5/15/10 contribution, but would I also further adjust it to reflect the fact that there was a missed quarterly?

1.430(g)-1(d) just states "For this purpose, the present value is determined using the effective interest rate under section 430(h)(2)(A) for the plan year which the contribution is made." There is no mention of any additional adjustments due to late quarterlies.

What is everyone else been doing?

[abanky]

I don't adjust them for the 2009 missed quarterlies... I don't think it is necessary.

[mwyatt]

Would agree with abanky. The quarterly penalty is factored into a higher amount having to be contributed to satisfy the minimum funding already; discounting for after contributions is just to get time value of money as of valuation date.

[AndyH]

Thirded. Consistent with how we do it.

[Mike Preston]

Fourthed?

[dmb]

Fifthed!

[Effen]

Thanks, I was hoping we were all on the same page with this.

[tymesup]

Seventhed.

Note that while 1.430(g)-1(d) refers to the effective interest rate under 430(h)(2)(A), the late quarterly penalty of 5% is under 430(j)(3)(A).