Line 38 of Schedule SB

[JAY21]

Line 38 of the 2009 Schedule SB states "Excess contribution for current year (excess, if any, of item 36 over item 37).

Is everyone just taking that statement (37-36) at face value and ALWAYS putting the difference between items 37 and 36 on that line regardless of what the client is actually electing for a pre-funding CB ?

The instructions to Line 38 talk about putting on line 38 the maximum amount the client "may elect" to add to the pre-funding credit balance.

If the client does not want to add to the pre-funding CB are you putting $0 on line 38 or still stating the 37-36 amount and then addressing the amount added to the pre-fundiing CB on item 11(d)(b) on the subsequent year's Sch SB (portion of funding to be added to pre-funding CB) ?

Thanks for any input.

[Effen]

We are doing what is says... 37-36. I didn't think this related to their actual election. You would report what they actually elected on line 11(d) on the next year's SB.

At least that is how we are doing it.

[Andy the Actuary]

For calendar year plan, election to add 2009 excess contributions to PFB as of 1/1/2010 must be made no later than 9/15/2010. Thus, it is possible that 2009 SB has already been filed (e.g., by 7/31/2010) by the time election to add to PFB is made. Thus, in the wake of instructional uncertainty, you would report the full (eligible) excess on the 2009 SB.

[AndyH]

We are doing what is says... 37-36. I didn't think this related to their actual election. You would report what they actually elected on line 11(d) on the next year's SB.

At least that is how we are doing it.

Same here.