Leaderboard

I think I like this explanation very very much. Based on this I can see how you could argue that the amortization is still level.

I've always took level amortization to mean, not less frequently then level amortization. That is you can't have negative amortization, ballon payments, interest only or similar but I see nothing wrong with making excess payments to reduce principal. Though much like making excess payments on your mortgage it doesn't reduce your future scheduled payments just pays the loan off soome than originally intented.

I believe they must enter immediately. In order to totally disregard this service for eligibility purposes under the "rule of parity" the employee must have been a PARTICIPANT at the time the break periods begin. I grant you that this seems ridiculous, but that seems to be the literal interpretation of IRC 410(a)(5)(D) and ERISA 202(b)(4). Never quite understood the sense of this, but my early mentor in this business told me to never try to make sense out of it all...