Proposed Regs 1.436-1(h)(2)

[flosfur]

I cannot quite figure out why the various % ranges are mentioned in h(2)(i) when "... less than 90% .." would have sufficed? Also, why was "at least 70% but less than 80%" range left out?

What am I missing?

[Mike Preston]

You are very late to the party. I think this has been pointed out to the IRS in the comment letters that have been sent by ASPPA and COPA. The bottom line is that they tried to get too clever and they most assuredly should just have said less than 90%. What they meant to say, but didn't end up doing so, is that the restrictions on plans with percentages less than 60% will apply to any plan with a prior year percentage of less than 70% and the restrictions on plans with percentages less than 80% but equal to or more than 60% will apply to any plan with a prior year percentage of 70% up to, but not including 90%. But I guess that would have been more words than they wanted to print.