presumptive burn

[jane murray]

2015 AFTAP certified timely at 85%

at 1/1/2016, AFTAP is presumed to be 85%

at 4/1/2016, AFTAP is presumed to be 75% (85% less 10%) since actual 2016 AFTAP has not been certified.

in order to avoid lump-sum benefit restriction, a presumptive burn occurs on 4/1/2016. to get the presumed AFTAP to 80%, lets say $20,000 of the prefunding balance is burned.

in July 2016, actual 2016 AFTAP is certifed at 82% taking into account 2015 contribution made in June 2016. this is the final certified 2016 AFTAP.

when preparing the 2016 Schedule SB, is there a deemed burn equal to $20,000 on line 12? or since the actual 2016 AFTAP is certified at 82%, the presumptive burn equal to $20,000 is disregarded?

im having trouble figuring out how the presumptive burn impacts the 2016 Schedule SB.

[Mike Preston]

The presumptive burn is treated exactly as a voluntary burn effected on 4/1. Do not disregard it.