Guest cde Posted May 2, 2003 Posted May 2, 2003 Can anyone cite a reference regarding withdrawal liability payments considered as employer contributions? Are there situations where the present value of future liability payments are considered an asset?
Guest Brian4 Posted May 2, 2003 Posted May 2, 2003 For purposes of funding calculations, withdrawal liability payments are treated like employer contributions. See IRC section 412(b)(7)(A) and Treasury Regulation 1.404(g)-1. What purposes did you have in mind? I have seen financial statements for multiemployer plans that show withdrawal liability contributions receivable. For these plans, the actuary subtracts these from assets for funding purposes, and recognizes the contributions when they are made.
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