Schedule SB - line 23

[Effen]

Has anyone thought about how to complete line 23 of the Schedule SB if you are funding for a lump sum? Line 23 allows you to choose "Prescribed-combined", "Prescribed-seperate", or "subsitute" and "substitue mortality tables must be applied in accordance with the terms of the IRS ruling letter."

The instructions for line 23 state that "Mortality tables described in Code Section 430(h)(3), ERISA section 303(h)(3), and section 1.430(h)(3) ... must be used to determine the funding target..."

However, 430(h)(4) or 1.430(d)-1(f)(4)(iii)(B) state that if you are funding for a single sum, "the current applicable mortality table under 417(e)(3) ...is substituted for the mortality table under section 430(h)(3)"

So, if I am funding for a lump sum, and using the 417(e) mortality it doesn't seem that I have any possible options since the 417(e) mortality is not one of the prescribed tables under 430(h) or 1.430(h)(3).

Any ideas?

[Andy the Actuary]

Any ideas?

Same idea regarding the use of no pre-retirement mortality for one-person plans.

[JAY21]

So the 417(e) table maybe can still be considered the "prescribed table", since that is what is called for under IRC 430 (by reference), so maybe we still just reference it as a prescribed table (actually a prescribed table within the prescribed table regs section.....).