deductibility of contribution to underfunded db plan termination

[Guest joe22]

This cash balance plan terminated in 1999, and is in the IRS national office pending tech advice. The plan is underfunded and the employer is making up the shortfall via contributions. The company is dissolving and has decided to fund the plan in 2002 and distribute the benefits.

We have 2 questions:

1. Is this contribution fully deductible in 2002 as a result of EGTRRA changes?

2. If not, since there will not be 10 years going forward, is the balance fully deductible the last year the company exists.

If anyone has any thoughts please advise.

[MGB]

What do you mean by terminated? (How can there still be assets?)

Do you have a date of termination? This will make a difference in applying EGTRRA.

What parts of EGTRRA are you referring to? Was this under 100 participants and not able to use unfunded current liability in the past?

[Guest joe22]

the termination date was june 30, 1999 but the assets are not yet distributed due to cash balance issues described above.

The plan has under 100 participants.

I was referring to the change in EGTRRA providing that contributions made to satisfy all termination liabilities are fully deductible in the year the contribution is made.