Cash Balance Pay Credit

[retbenser]

The pay credit is the maximum alllowable, which is 1/10 of the 415 $ limit at current age using 5.5%.

Question:

Is the pay credit (which depends on age) based on beginning-of-year age or end-of-year age?

For example, for 2010, the boy age is 45 and eoy age is 46. Is the pay credit based on age 45 or 46?

Thanks for all responses.

[SoCalActuary]

Follow the document. When is the contribution credit determined?

Until it is credited, no accrual exists. Once it is credited, you must determine 415 limit compliance.

[retbenser]

Follow the document. When is the contribution credit determined?

Until it is credited, no accrual exists. Once it is credited, you must determine 415 limit compliance.

Credit is as of end of year; I guess this means I use the eoy age. Thanks.