Schedule R, Line 3

[Andy the Actuary]

Because of funding restrictions, all lump sums distributed under a particular DB Plan in 2009 represented only 50% of the total benefit.

The instructions to line 3 Schedule R indicate, "Line 3. Enter the number of living or deceased participants whose benefits under the plan were distributed during the plan year in the form of a single sum distribution."

Thus, a fundamentalist reading of the Schedule R instructions would suggest "0" is the appropriate entry.

How have practitioners approached this question?

[Mike Preston]

0 is how I would answer.

[GMK]

For example, from IRS Topic 412:

"A lump-sum distribution is the distribution or payment, within a single tax year, of a plan participant's entire balance from all of the employer's qualified pension, profit-sharing, or stock bonus plans. All the participant's accounts under the employer's qualified pension, profit-sharing, or stock bonus plans must be distributed in order to be a lump-sum distribution." (emphasis added)