COB adjustment

[Guest jmrodrig]

I have calendar year plan (BOY VAL.)with COB of 23000 from 2007 schedule B line 9 o. This was reported on the 2008 Schedule SB.

No contribution was required for 2008 plan year so no reduction is COB was needed.

With the 2009 valuation, the plan has now had a minimum requirement. If the sponsor wishes to elect to use the COB toward the Min. Req. Contr., they will due so as of 1/1/2009 (plan valuation date).

My question is, is it correct that I adjust the 23000 by the Plan's Actual Rate of return for the 2008 plan year BEFORE it is used to offset contribution?

In other words, if Plan's 2008 ROR was -10%. Is the amount available to be used on 1/1/2009 20,700 (23000 x .9)?

I appreciate your help.

[Mike Preston]

You are correct.