Final Funding Regs

[JAY21]

I wasn't expecting an automatic change in valuation date to be allowed for 2009 but if I'm reading the final regs correctly it appears to offer such for 2008, 2009, and 2010. I'd appreciate any confirmation and other interpretations to the following questions:

1. So a plan using an End-of-Yr valuation date through 12/31/08 has automatic approval to change to a Beg-of-Yr val date as of 1/1/09 ?

2. Do you interpret this as being a multi-year option for years from 2008-2010 so in theory could you do a EOY-Val for 12/31/08, BOY-val for 1/1/09, then back to a EOY val for 12/31/09 ? Kind of an extreme example but just trying to flush out the full scope of options available.

See attached for the section I'm talking about (red-boxed section).

Valuation_Date_Change_Final_Regs.pdf

[david rigby]

Yes, and yes. I think your reference to "12/31/09" in (2) should be "12/31/2010"?

Likely, the IRS will never object to a change to BOY, consistent with Rev. Proc 2000-40 (and its predecssor RP 95-51).

[ScottR]

Yes, I think you're reading it correctly. We're free to change val dates in 2008, 2009, and 2010. I'm pretty sure I heard confirmation of this at the ASPPA Conference.

.. Scott

I wasn't expecting an automatic change in valuation date to be allowed for 2009 but if I'm reading the final regs correctly it appears to offer such for 2008, 2009, and 2010. I'd appreciate any confirmation and other interpretations to the following questions:

1. So a plan using an End-of-Yr valuation date through 12/31/08 has automatic approval to change to a Beg-of-Yr val date as of 1/1/09 ?

2. Do you interpret this as being a multi-year option for years from 2008-2010 so in theory could you do a EOY-Val for 12/31/08, BOY-val for 1/1/09, then back to a EOY val for 12/31/09 ? Kind of an extreme example but just trying to flush out the full scope of options available.

See attached for the section I'm talking about (red-boxed section).