AndyH Posted September 30, 2010 Posted September 30, 2010 Are you truncating or rounding? Any guidance from the IRS other than the SB instructions that say to truncate entires on SB?
Effen Posted September 30, 2010 Posted September 30, 2010 Seems like you answered your own question - SB instructions say truncate. We're truncating like good little children. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
dmb Posted September 30, 2010 Posted September 30, 2010 Seems like you answered your own question - SB instructions say truncate.We're truncating like good little children. Agreed. The original instructions say round to nearest .01, but current instructions say truncate to .01.
Andy the Actuary Posted September 30, 2010 Posted September 30, 2010 You youth have no shame -- truncating in public! The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
AndyH Posted September 30, 2010 Author Posted September 30, 2010 Just to be clear, I am asking about the signed AFTAP, not the !@#@$!!&%##! SB.
Effen Posted September 30, 2010 Posted September 30, 2010 I heard Holland say many times the final AFTAP needs to match the SB, so I truncate in both places ... sometimes even using my real name. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
AndyH Posted September 30, 2010 Author Posted September 30, 2010 I agree with you, but I also heard him say the (2008 I acknowledge) SB is filled with errors and was done before the regs were issued, although he did say that the instruction have a better chance of being correct than the form. So how do we know the instructions are "correct". Also, my relius software calculates the rounded AFTAP, and it creates a validation error if you override it. So therefore I ask as we truncate and truncate what others are doing. Is everybody going to go back and revise their March AFTAPs to make sure they are truncated? That's the zen question of the day.
david rigby Posted September 30, 2010 Posted September 30, 2010 Nothing written in front of me, but I recall more than one statement at the 2010 EA meeting: round down. At least one of the speakers was from the IRS/Treasury. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
My 2 cents Posted October 1, 2010 Posted October 1, 2010 Our understanding is that a plan with an AFTAP of 79.9+% would not be a plan whose AFTAP is at least 80%. 80% means at least 80.00000%. Our vote is for rounding down, especially when faced with a borderline result. Always check with your actuary first!
dmb Posted October 1, 2010 Posted October 1, 2010 Just to be clear, I am asking about the signed AFTAP, not the !@#@$!!&%##! SB. Given that there doesn't seem to be any other written instructions, only what people may have or may not have said, it seems the #%&@#*! SB instructions are all we have to go on.
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