PBGC coverage - when does it stop?

Hi

Calendar DB plan for 2021. Owner plus 1 rank&file participant.

As of 8/31/2021, rank&file participant is paid out, now only owner remains,

Applied to PBGC for an exemption from coverage request and got a response stating that the case is not yet assigned to an agent yet. So, no formal exemption determination yet.

The owner wants to make full 58k profit sharing plus a rather large DB contribution. Rank&file will receive whatever PS is necessary.

When is the DB plan officially considered not covered by PBGC?

When is the PS portion is limited to 6%?

Thank you.

Effen, thank you for the link. Good start.

Not clear what to do with certainty. I see CB’s last comments but again still not with certainty.

Need to research more as I am not comfortable without solid back up.

To me, that was the point of the thread...you won't find any black/white answers.  Safe approach is the limit the deduction for 2021, aggressive approach is don't.   This should not be your call.  Present the facts as known to the plan sponsor and their accountant and let them make the call.