Method Change + Auto Approval

[David]

I have a calendar year DB plan with a BOY val date. I just want to check to see if this is correct:

2008 val asset method = market

2009 val asset method = average (no IRS approval required)

2010 val can switch back to market without IRS approval.

Is that correct?

[Effen]

That is my understanding. You have one more "free" switch in 2010.

[david rigby]

Correct. See Reg. 1.430(g)-1(f)(3).

Note that Rev. Proc 2000-40 (section 3.10) provides blanket permission to change to FMV anytime. Such permission does not exist in the current reg, although it is difficult to imagine the IRS denying such request.

[David]

Thanks!