pre funding balance elections

[Gary]

first year working on this plan

The plan sponsor contributed an excess contribution for 2010 as of 100k as of 12/31/10 val date.

no credit bal or pre fund bal prior to 2010

no election is made by 9/15/11 to establish a pre fund balance.

as a result it seems to me that it is too late to establish a pre fund bal for excess 2010 contribution and thus no available pre fund bal to offset 2011 min funding.

Am I missing something?

it pays to plan ahead or just establish a pre fund bal all the time.

thanks

[Effen]

You're welcome

[tymesup]

You may want the sponsor to make a standing election to create the maximum PFB so this problem won't happen again.

Note that if you had a COB, you might not want a PFB, so the standing election could work against you.