CB First Year Funding Question

[Lou S.]

I'm coming across a weird situation I have not seen before and wonder how to handle. I feel I should know this so if it's basic my apologies,

CB credits are roughly $250K

Due to mandated interest rates my valuation results are coming up with a minimum contribution of roughly $190K and maximum of roughly $220K.

There is no current Funding Target as this is first year with no past service so I don't seem to be able to take advantage of the cushion amount.

The plan results have the $250K credits as the amount payable under the plan and these are below the 415 payout limit for all participants but my max deductible results fall $30K short of the the CB credits?

Can the client fund and deduct the full $250K in year one?

Plan is PBGC if that makes a difference.

Am I missing something obvious here that will allow me to make the full $250K contrib?

[Mike Preston]

Check past threads for application of the at-risk rules in this situation when determining the max.

[FAPInJax]

Mike is correct. The client MAY be able to deduct the full contribution credit using the at-risk rules.

[Lou S.]

Thanks, I'll search.