FSA, FFC, Max Deductions

[Gary]

Plan has aggregate funding method normal cost (minimum funding) of $40,000.

412 full funding limit for 90% RPA and ERISA are less than zero.

404 Unfunded RPA is $60,000.

Client wants to and plans on funding $40,000.

So if client pays $40,000 then the quesion is:

Does the FSA show a year-end balance of zero (no FFC) or is there a credit balance of $40,000 equal to $40,000 FFC + $40,000 contribution - $40,000 AFD?

[Blinky the 3-eyed Fish]

The FFC is not affected by the contribution made so your credit balance will be 40,000.

[david rigby]

...plus interest if any portion of the contribution was made before the end of the plan year.