DC plan deduction limit - combo plan PBGC related

[Jakyasar]

DB plan was covered by PBGC BOY but got an exemption during the plan i.e. not covered at EOY.

What is the DC deduction limit 6% or 25%?

Drawing a blank.

[CuseFan]

59 minutes ago, Jakyasar said:

got an exemption

What do you mean? Thought they were covered, filed for a determination from PBGC, found out they weren't? Or was this owner + employee = PBGC coverage then employee left (paid out or forfeited) so now owner only and PBGC-exempt? 

If the former, then really never covered and always 6% to avoid combined deduction limit.

If the latter, covered to start 2025 and paid PBGC premiums for 2025, then I do not think the combined plan deduction limits apply until 2026 and 25% is allowed for 2025.

[Jakyasar]

Owner+employee for many years, employee terminated and got paid during 2026 and only owner at end of 2026.

Once employee got paid, applied to PBGC for exemption from further coverage and got exemption effective May 1, 2026 so the rest of the 2026 no more PBGC coverage.

Question is for 2026 deduction limits.

Hope explained better this time.

[Bri]

Feels like the same argument you'd use as to whether the plan gets to file a 5500-EZ for 2026, no?

[Jakyasar]

Plan does not file 5500-EZ for 2026 as BOY was 5500-SF, if I recall correctly, I may be wrong though.