cushion amount

[Gary]

A db plan w/ < 100 participants amends formula effective 1/1/07 on 3/5/2008.

When the plan does their 12/31/2010 valuation can they reflect the 3/5/08 amendment?

While 12/31/2010 is more than two years after adoption of amendment the 1/1/10 start of plan year is less than two years after 3/5/08.

In other words the plan may have to use plan provisions as of 12/31/2007 to determine cushion amount for 12/31/10 valuation.

Section 404(o) does not explicitly address this specific logistic from what I see, but it may be addressed somewhere.

An actual cite is of course appreciated.

I feel as if I have read something on this somewhere but did not see it when revisiting 404(o)

thanks.

[tymesup]

My understanding is that 2 years, as per the Code, is interpreted by the IRS as 3 years. IIRC, this logic is also applied so that EOY vals don't have an extra year to play with.

In this case, the clock starts in 2008, so the limit is applied in 2008, 2009 and 2010.

Sorry, I don't have a cite handy.

[tymesup]

And four years later, still can't find a cite.

Notice 2007-28, question 5, does give an example of "two years" for a different Code section.