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In determining if there are late quarterly interest charges due for the 2002 calendar plan year, when are the prior year's RPA liabilities redetermined?

I am thinking that in accordance with 412(m)(7) and 412(l)(7)©(i)(III), if you use an OBRA interest rate for the 2002 valuation which is above 6.00% (the limit at 105% of the range), you MUST redetermine last year's RPA liabilities using 120% of the range as in effect on 1/01 (i.e. 7.10%). If at or under 6.00%, then don't redetermine the liabilities.

I am less than certain.

Additionally, I looked at the Sch B instructions for 2002 and it replaces MUST with COULD, effectively. Meaning that you might not be required to recompute.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

  • 2 weeks later...

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