436 contribution

[Gary]

Say a plan has a 2011 AFTAP of 50% and the 436 contribution to bring it up to 60% is 100,000.

Say the sponsor makes a 436 contribution of 100k (adjusted) and a newly certified 2011 aftap is 60%.

For purposes of the 2011 MRC plan assets for such calculation will not include the 436 contribution. Is that correct?

I located something to this effect in on eof the examples in the 436 regs.

thanks

[Guest Mike Melnick]

It appears that you have a choice here.

If you designate the contribution (as a 430 contribution) for the 2010 plan year (but do not add it to the pre-funding balance), then you can count it both for the MRC for 2011 and the 2011 AFTAP. Of course the contribution has to be actually made before you can use it for the AFTAP.

If you designate it as a 436 contribution for for 2011 AFTAP only, then it would not be included in 1/1/11 assets for purposes of the 2011 MRC.