Guest Doogie61 Posted December 1, 2009 Posted December 1, 2009 Question is this... Val date 1-1-09 Funding Target = $ 500,000 Assets = $ 475,000 Phase in percentage 94% Target Normal Cost =$50,000 What's my minimum contribution?
abanky Posted December 1, 2009 Posted December 1, 2009 when was the plan effective? Any credit balances?
Guest Doogie61 Posted December 1, 2009 Posted December 1, 2009 when was the plan effective?Any credit balances? Assume it's been around for 5 years 01/01/04 effective and that there are no credit balances.
Effen Posted December 1, 2009 Posted December 1, 2009 Did you have additional funding charges in 2007? 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.
Andy the Actuary Posted December 1, 2009 Posted December 1, 2009 Your facts appear so straightforward. Is there some subtlety with which you're concerned? 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 Doogie61 Posted December 1, 2009 Posted December 1, 2009 Yes Andy... When the assets exceed the funding target that "excess" reduces the Target normal cost. Is that the excess over the Funding Target after it has been "adjusted" by 92% or is that only to determine whether a shortfall amortization base needs to be developed.
Andy the Actuary Posted December 1, 2009 Posted December 1, 2009 In short, it appears you were questioning whether contribution is 50K or 45K. Concur with Abanky. I.e., excess assets are "net" assets in excess of FT, not in excess of phase-in percentage of FT. 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 Doogie61 Posted December 1, 2009 Posted December 1, 2009 Thank you Andy .... you are correct that was my question!
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