Question 19b and 19c of Schedule SB

[Dinosaur]

I am preparing the 2010 Schedule SB for a 10/31/2011 year end. Say the minimum required contribution was $20,000 as of 11/1/2010. The client makes a contribution of $30,000 on 7/1/2012 and $10,000 on 7/12/2012.

The $30,000 contribution satisfied the minimum required contribution. The additional $10,000 contribution brought the AFTAP up to 80.10%.

Is 19b the discounted value of $10,000 (since brought the plan up to 80%?) and 19c the discounted value of only $30,000?

What if the full $40,000 was deposited on 7/12/2012. Would you break up the contribution between 19b and 19c?

Would it make a difference if the plan was frozen on 6/1/2006 and the plan doesn't pay lump sums over $5,000?

[SoCalActuary]

What did the plan sponsor election say?

[Dinosaur]

What did the plan sponsor election say?

There is no election. We prepared a 11/1/2010 valuation with a range of contributions for the plan year. Once the contributions were deposited an AFTAP will be prepared showing 80.10%.

Since there is no election, do I put the full amount of the contributions (discounted) on line 19c?

[StormShadow]

I believe 19b is contributions specifically designated to avoid or terminate benefit restrictions. So in your case, you would put the entire amount in 19c.

1.436-1(f)(2)(ii)(B) Designation requirement.

[ScottR]

For B.O.Y. valuations, the AFTAP generally isn't affected by current year contributions (or by current year accruals). It's based on B.O.Y. assets (with interest adjustment for prior year deposits made after the end of the prior year) and B.O.Y. Funding Target. Thus, I'm not understanding your question.

... Scott

[SoCalActuary]

For B.O.Y. valuations, the AFTAP generally isn't affected by current year contributions (or by current year accruals). It's based on B.O.Y. assets (with interest adjustment for prior year deposits made after the end of the prior year) and B.O.Y. Funding Target. Thus, I'm not understanding your question.

... Scott

But for End of year valuations, a 436 contribution during the plan year does not get subtracted from the assets for determination of 430 contribution due.