Credit Balance Timing

[Guest snakeeyes]

Suppose a plan is going to be subject to a benefit restriction in 2009 and has enough credit balance to avoid the restriction.

Can a plan sponsor elect to use the credit balance first to offset the minimum then see what is left over to avoid the restriction, or does the restriction take precedence?

The proposed reg under 430(f) states that the minimum offset is applied as of the valuation date, while the reg under 436 states that any mandatory burning of credit balance is applied as of the 436 measurement date. So, I'm thinking that if I finish my funding valuation first and have a sponsor election to use the credit balane to offset the minimum, I can do that first (assuming the final regs don't change this).

Any other thoughts?