tsrl01 Posted May 16, 2011 Posted May 16, 2011 just wondering if there is any IRS guidance on what might constitute a significant cost increase such that it is a permitted election change... The regs are silent, but I wasn't sure whether there was a PLR or a Rev. Rul, etc... 10% okay? Need 30%? Just curious.... Thanks
GBurns Posted May 16, 2011 Posted May 16, 2011 12.5% is used in Example 7 at 1.125-4 (f)(5) for the Cost Change Regs 1.125-4 (f)(2)ii You can view the Regs at www.changeofstatus.com under Resources. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
tsrl01 Posted May 17, 2011 Author Posted May 17, 2011 I didn't pay much attention to that example since it was a DC example, but I see that now - thanks so much!!
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