AFTAP for 2007

[Guest saeissler]

Assume calendar year plan.

Am I correct that a formal AFTAP certification has to be issued for 2007 in writing to the plan administrator or else the presumption for 2008 will be less than 60%, and that this presumption will create restrictions on amendments after 1/1/2008 and restrictions on distributions and accruals after 4/1/2008?

[Penman2006]

That is my understanding. Also, I think that a participant notice would be required within 30 days of the date the restriction on accelerated payments or benefit accruals applies.

[Guest saeissler]

That is my understanding. Also, I think that a participant notice would be required within 30 days of the date the restriction on accelerated payments or benefit accruals applies.

Thanks Penman.

[SoCalActuary]

Assume calendar year plan.

Am I correct that a formal AFTAP certification has to be issued for 2007 in writing to the plan administrator or else the presumption for 2008 will be less than 60%, and that this presumption will create restrictions on amendments after 1/1/2008 and restrictions on distributions and accruals after 4/1/2008?

You don't have to issue a 2007 AFTAP, and one of two things will result.

1. The 2008 AFTAP is issued, and the consequences of that are used.

2. The restrictions start 4-1-08, or until the 2008 cert is done.

But you can do the 2007 AFTAP, and buy time until 10-1-08