Effect of ERISA Full Funding Credit on ARA

[Guest HaroldA]

I'm attempting to complete the 2004 Schedule B for one of our clients, and I'm not sure what (if anything) I should show in the Accumulated Reconciliation Account (ARA).

The 2003 Schedule B reported the following:

line 9e = 100,000 (add'l interest charge on late quarterlies for the 2003 plan year)

line 9q(1) = 8,000,000 (ARA due to add'l funding charges)

line 9q(2) = 50,000 (ARA due to add'l interest charges)

line 9q(4) = $8,050,000 (total ARA)

The plan had an ERISA full funding credit of $4,000,000 for the 2004 plan year.

I think the balance in the ARA (line 9q(4) of 2003 Schedule B) gets eliminated because of the full fuding credit. Is that correct?

What do I do with line 9e from the 2003 Schedule B? Does this get reported on line 9q(2) of the 2004 Schedule B?

What should I report on lines 9q(1) and 9q(2) on the 2004 Schedule B?

PLEASE HELP!

[david rigby]

The FFC for 2004 will elimnate the Reconcilation Account for 2005. Assuming there was no FFC for 2003 (which seems unlikely), the 2004 Sch. B should have:

Line 9q(1) should be 8,000,000 x (1+i).

Line 9q(2) should be 50,000 x (1+i) + 100,000

[Guest HaroldA]

So then for my 2005 Schedule B, assuming there was no additional funding charge and no interest charge for late payment of required quarterly contributions for the 2004 plan year, I would have:

9q(1) = 0

9q(2) = 0

Is this correct?

[david rigby]

That is what I would expect.