Change of Valuation Date

[tymesup]

Suppose a small plan had a beginning of year valuation date for

calendar year 2007.

The 12/31/07 proposed regs permit a change to an end of year val date

for 2008.

Can the plan change the val date back to BOY for 2009? 2010?

Thanks for any help.

[david rigby]

I think that is not addressed by prop. regs. However, it may be reasonble to look at Rev. Proc. 2000-40; section 3.13 permits a change to BOY anytime, subject to the restrictions in Section 6.

[tymesup]

2000-40, Section 6 provides "Approval … does not apply to … the following changes … the val date is being changed and the val date was changed in any of the four preceding plan years”. I don't think this solves the problem.

[david rigby]

So far, that appears to be correct.

The IRS could issue additional guidance that would permit the scenario you suggest.

[ScottR]

Suppose a small plan had a beginning of year valuation date for

calendar year 2007.

The 12/31/07 proposed regs permit a change to an end of year val date

for 2008.

Can the plan change the val date back to BOY for 2009? 2010?

Thanks for any help.

Not without specific IRS approval, based on what we know now. You can use whatever date you want in 2008, but any subsequent change requires IRS approval.