Elections under MAP 21

[Guest DBStudentAct]

A mid-sized plan I'm working on reported its FTAP as 78% using the pre-MAP 21 funding segment rates. It was planning to apply its balances to get the FTAP up to 80%.

In the post MAP 21 era, the FTAP is just about 100%. I am working on a few 2013 plan year projections since the client has indicated its inability/intent to put in the lower 2012 MRC (?). Just wondering if MAP 21 in any way restricts the use of balances to be applied to fill in the MRC deficit (due to its original under-funded status?). Technically since the plan is now fully funded, I see no problem but thought of asking for any other view out there.

Thanks all in advance.

[Mike Preston]

Not an issue. You should check out the MAP-21 IRS Notice to see what happens to your 78% to 80% credit balance reduction.