Maximum Deductible Contribution for CB Plan

[metsfan026]

Good afternoon everyone.  Someone is questioning me, so now I'm second guessing myself.  The max deductible contribution for a Cash Balance is:

Funding Target + Normal Cost + Cushion Amount (Funding Target /2) - Assets

I have that correct, right?

[Lou S.]

Generally speaking that seems correct. What are they questioning?

[Effen]

All determined at the appropriate interest rates used for maximum deductible contributions. 

[metsfan026]

1 hour ago, Lou S. said:

Generally speaking that seems correct. What are they questioning?

It was an accountant because the max deductible we were telling them was greater than another actuary.  I was just confirming, even though I knew we were correct.

Thank you

[david rigby]

12 hours ago, metsfan026 said:

It was an accountant because the max deductible we were telling them was greater than another actuary. 

Just speculating, the comment from @Effen might be the source of your "greater than".   Also, having two actuaries opine on a contribution implies a change of actuary (?), so maybe there are some census data questions to address.

[Lou S.]

Have there been any benefit increased to HCEs in the last 2 years?

[metsfan026]

On 12/26/2024 at 1:25 PM, Lou S. said:

Have there been any benefit increased to HCEs in the last 2 years?

This is a new case for us, so I'm honestly not sure

[Bri]

10 hours ago, metsfan026 said:

This is a new case for us, so I'm honestly not sure

That's one of the gotchas in the maximum deduction calculation.  Another variable that might be causing variance could be the interest crediting rate you're using versus the other firm.