"amended plan last 2 year" rule regarding max deduction

[himt4]

With regards to the rule that you can deduct up to the unfunded 404(a)(1)(F) current liability. There is that part that you can not take into account any benefits that were the result of a plan amendment that increased benefits in the last two years.

I request feedback regarding whether a brand new plan is or is not considered an amended plan (i.e can a brand new plan deduct up to its 404(a)(1)(F) current liability in year one?)

Let me know if there is any official confirmation that supports the answer, or whether the answer is just the current conventional wisdom based on reasonable interpretation.

[AndyH]

"Adoption of a new plan is considered to be an amendment for this purpose."

Gray Book 2006-14. Not official, but as close as you are going to get.

[Blinky the 3-eyed Fish]

That directly contradicts the speaker at the 2004 or 2005 LA Benefits Conference. I can't remember if it was Holland or Pippins.

[SoCalActuary]

Jim Holland in 2006 at LABC said that new plan was not an amendment.

[FAPInJax]

Question 14 from the 2006 EA meeting stated that "Adoption of a new plan is considered to be an amendment for this purpose." addressing the deduction for a new plan.

[AndyH]

Is that different from what I said?

[Blinky the 3-eyed Fish]

I wasn't at the 2006 LABC, but it's nice to know there is consistent thinking amongst the IRS on this and other topics. My goodness, I just want to know what the rules are!