Terminating Plan maximum contribution

[Guest RBlaine]

404(o)(1)

`(A) the sum of the amounts determined under paragraph (2) with respect to each plan year ending with or within the taxable year, or

`(B) the sum of the minimum required contributions under section 430 for such plan years.

paragraph 2 is the FT + TNC + Cushion - Assets.

Plan termination in 2008 with max 2008 contribution made 10/08. Payouts in 2009. With the 2008 investment losses, employer wants to fund the amount needed to get the assets = LS's payable. Owner and daughter (less than age 26) ar the only plan participants, so no PBGC coverage.

404(o)(5)

SPECIAL RULE FOR TERMINATING PLANS- In the case of a plan which, subject to section 4041 of the Employee Retirement Income Security Act of 1974, terminates during the plan year, the amount determined under paragraph (2) shall in no event be less than the amount required to make the plan sufficient for benefit liabilities (within the meaning of section 4041(d) of such Act).

Since this is not a PBGC covered plan, do I need to calculate the FT and cushion on 2009 to make sure the total needed to fully fund LS's fits under the FT + Cushion - Assets? Do I have a special 'valuation date' of the date of distribution or use the 1/1 date used for the determination since that is what was used for 2008.