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Posted

Has anyone worked on the calculation of the AFTAP for an EOY val in accordance with Notice 2008-21? It appears you are allowed to use results from 2006 but are limited in adding back 2006 contributions. The Notice talks about a 90%/110% calculation to determine that limitation, but it seems a bit confusing. Any input would be appreciated.

Posted

I believe that this limit refers to the method of plan asset valuation. So, if you are using fair market value, then this limit should not apply. If you are using some sort of smoothing method, then you need to apply this 90%/110% calculation.

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