Not covered by PBGC anymore, what is the deduction limit for 2026 for DC portion?

Cannot remember this from previous discussions.

Calendar CB plan.

All rank&file terminated in 2025 and paid out in 2026. Only owners left in the CB plan for 2026 and on.

Just obtained a PBGC exemption letter stating PBGC coverage no longer applies effective 8/15/2026.

As the CB plan was covered by PBGC during the earlier part of 2026, can they still get 25% DC deduction for 2026 or now that no longer PBGC covered, they need to be limited to 6% deduction limit for 2026%

Thanks

Always thought that this was a grey area, but others will surely know more about this. The question is when IRC 404(a)(7) says “a plan covered under ERISA 4021,” what is the measurement date for PBGC status with respect to the employer's taxable year? I normally recommend being conservative but I would imagine that clients and their CPAs are much more willing to use 25% of compensation as the deduction limit.