Cash Balance Takeover

[nancy]

We took over a cash balance plan and the valuations had not been done for 2007 and 2008. As I worked through them, I discovered that they did not pass 401(a)(4) for either year. Therefore, I need to prepare an amendment and go through VCP. My question is - for purposes of the 2007 and 2008 Schedules B and SB, should this amendment be reflected ? I'm thinking that since the amendment was not adopted within 2 1/2 months after pye, I should not reflect on the Schedule B. If that's the case, it's actually also too late for 2009. Will these amendments be reflected in the 2010 funding target?

[SoCalActuary]

We took over a cash balance plan and the valuations had not been done for 2007 and 2008. As I worked through them, I discovered that they did not pass 401(a)(4) for either year. Therefore, I need to prepare an amendment and go through VCP. My question is - for purposes of the 2007 and 2008 Schedules B and SB, should this amendment be reflected ? I'm thinking that since the amendment was not adopted within 2 1/2 months after pye, I should not reflect on the Schedule B. If that's the case, it's actually also too late for 2009. Will these amendments be reflected in the 2010 funding target?

Your schedule B and SB should reflect the plan as it existed. A discrimination failure is not listed as an actionable item in IRC 412.

[ak2ary]

...and of course, there is a school of though that says if you test long enough, you will find a way to make it pass