Applying Credit Balance to Quarterly Contr Requirements

[dmb]

I hate to revisit this topic, but i'm still not sure which way to go with this. It seems the concensus of this board is that if for a 2008 calendar plan year with quarterly conbtribution requirements, a credit balance election is made in April of 2009 to apply the entire 2008 funding requirement and no cash contributions are made, the funding requirement is met and there is no penalty discount for late quarterly contributions since any credit balance in essence applies the credit balance as of 1/1/08.

However, it seems to me that the proposed regs say that the quarterly contribution is deemed satisfied on the date the credit balance election is made, and if late, a penalty discount would apply.

I also realize that final regs may confirm the concensus of the board, but until then is there any cite or publication that is being relied upon to support the concensus?

Thanks.

[Andy the Actuary]

First, by board, presumbably you mean benefitlink bulletin board?

If so, then concensus may give you warm fuzzies but not a hook to hang your hat on. There is no guidance per se, at least that any of the BL posters appear aware of. You may find helpful the posts at http://benefitslink.com/boards/index.php?showtopic=42518

[AndyH]

I don't think there is agreement at all that a 4/09 designation satisfies 2008 quarterlies without interest penalty, for exactly the reason you cite - the proposed regs, as well as verbal statements in various forums. It is an argument, maybe it makes sense, but it is not the conservative view.