flosfur Posted March 12, 2009 Posted March 12, 2009 Has the IRS issued any guidance on this? What if, as is the case for 2008, the return on assets is negative? Is the credit balances reduced!? I hope not!
Guest Xerxes Posted March 12, 2009 Posted March 12, 2009 No specific guidance on how to calculate, but it is clear that with a negative return you would bring the prior year beginning of year credit balance forward at the negative rate. I am using the old schedule B method of (2I)/(A+B-I) in the meantime.
Andy the Actuary Posted March 12, 2009 Posted March 12, 2009 similar thread http://benefitslink.com/boards/index.php?showtopic=41441 The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
flosfur Posted March 13, 2009 Author Posted March 13, 2009 No specific guidance on how to calculate, but it is clear that with a negative return you would bring the prior year beginning of year credit balance forward at the negative rate. I am using the old schedule B method of (2I)/(A+B-I) in the meantime. You mean the credit balances can decline!?
Effen Posted March 13, 2009 Posted March 13, 2009 I agree that the COB will most likely decline during 2008 due to market value losses. However, I now believe this entire downward spiral in the market is the result of Congress continued drive to get rid of credit balances. In fact, I'm surprised AtA didn't pick up on this. Just like the Feds going after Al Capone, they realized they couldn't take credit balances away directly, so they looked for another way to destroy them. So, in PPA they got the COB tied to real market returns, then all they needed to do was cause a financial crisis so great that no investment would be safe and COB's would get reduced. Obviously the plan was hatched during the early 90s because they had to have time to give lots of cash to the financial sector to provide prop up their dubious lending practices. Then, just before everything collapsed, they passed PPA and the trap was set. They instruct the accountants that everything should be marked to market, then point out the bad dept just hanging around in the financial sector and boom, markets start to fall and COBs are reduced, and those that remain can’t be used because the AFTAP will be less than 80%. By 2010, all COBs will be gone… mmooohaa haa haaa {maniacal laughter}. It was a brilliant plan. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Guest RBlaine Posted March 13, 2009 Posted March 13, 2009 It was a brilliant plan. It may be a brilliant plan, but I don't think any of the Congresscritters are smart enough to come up with it, much less actually plan ahead. Maybe, Cheney or Soros? Both working together, pretending against the love that....
david rigby Posted March 13, 2009 Posted March 13, 2009 It was a brilliant plan. Congress and "brilliant" in the same discussion! Very funny. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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