2009 Instructions For Schedule Mb (Form 5500) Multiemployer Defined Benefit Plan And Certain Money Purchase Plan Actuarial Information (Page 6 of 6) in pdf

any other unusual or unique situation, the attachment should

for Amended Return/Report in the instructions for Form

include an explanation of what is being provided.

5500-SF, as applicable).

Line 9. Shortfall Method. Under the shortfall method of

Line 9k(2). Other Credits. Enter a credit in the case of a plan

funding, the normal cost in the funding standard account is the

for which the accumulated funding deficiency is determined

charge per unit of production (or per unit of service) multiplied

under the funding standard account if such plan year follows a

by the actual number of units of production (or units of service)

plan year for which such deficiency was determined under the

that occurred during the plan year. Each amortization

alternative minimum funding standard.

installment in the funding standard account is similarly

Line 9o. Reconciliation Account. The reconciliation account

calculated.

is made up of those components that upset the balance

Lines 9c and 9h. Amortization Charges and Credits. If

equation of Treasury Regulations section 1.412(c)(3)-1(b).

there are any amortization charges or credits, attach a

Valuation assets must not be adjusted by the reconciliation

maintenance schedule of funding standard account bases and

account balance when computing the required minimum

label the schedule “Schedule MB, lines 9c and 9h –

funding. Notice 1389, Changes for the 2008 Instructions for

Schedule of Funding Standard Account Bases.” The

Schedule MB (Form 5500), revised the instructions for line 9o of

attachment should clearly indicate the type of base (i.e., original

the 2008 Schedule MB, but this notice did not require an

unfunded liability, amendments, actuarial losses, etc.), the

amended 2008 Schedule MB to be filed. If the accumulated

outstanding balance of each base, the number of years

reconciliation account reported on line 9o(3) of the filed 2008

remaining in the amortization period, and the amortization

Schedule MB was calculated pursuant to the originally

amount. If bases were combined in the current year, the

published instructions, an attachment must be included with the

attachment should show information on bases both prior to and

2009 Schedule MB reflecting the corrected accumulated

after the combining of bases.

reconciliation account, calculated pursuant to the instructions

contained in IRS Notice 1389, with an explanation of the

The outstanding balance and amortization charges and

change. Label this attachment “Schedule MB, Explanation of

credits must be calculated as of the valuation date for the plan

2008 Reconciliation Account Change.”

year.

Line 9o(1). This amount is equal to the prior year’s

Line 9d. Interest as Applicable. Interest as applicable should

accumulated reconciliation amount due to prior waived funding

be charged to the last day of the plan year.

deficiencies, increased with interest at the valuation rate to the

Line 9f. Note that the credit balance or funding deficiency at

current valuation date.

the end of “Year X” should be equal to the credit balance or

Line 9o(2)(a). If an amortization extension is being amortized

funding deficiency at the beginning of “Year X+1.” If such credit

at an interest rate that differs from the valuation rate, enter the

balances or funding deficiencies are not equal, attach an

prior year’s “reconciliation amortization extension outstanding

explanation and label the attachment “Schedule MB, line 9f –

balance,” increased with interest at the valuation interest rate to

Explanation of Prior Year Credit Balance/Funding

the current valuation date, and decreased by the year end

Deficiency Discrepancy.” For example, if the difference is

amortization amount based on the amortization interest rate

because contributions for a prior year that were not previously

from the prior plan year.

reported are received this plan year, attach a listing of the

amounts and dates of such contributions.

Line 9o(3). Enter the sum of lines 9o(1) and 9o(2)(b) (each

adjusted with interest at the valuation rate to the current

Line 9j(1). ERISA Full Funding Limitation. Instructions for

valuation date, if necessary).

this line are reserved pending published guidance.

Note. The net outstanding balance of amortization charges

Line 9j(2). “RPA ’94” Override. Instructions for this line are

and credits minus the prior year’s credit balance minus the

reserved pending published guidance.

amount on line 9o(3) (each adjusted with interest at the

Line 9j(3). Full Funding Credit. Enter the excess of (1) the

valuation rate, if necessary) must equal the unfunded liability.

accumulated funding deficiency, disregarding the credit balance

and contributions for the current year, if any, over (2) the

Line 10. Contribution Necessary to Avoid Deficiency. Enter

greater of lines 9j(1) or 9j(2).

the amount from line 9n. For plans in reorganization, see the

instructions for line 5. If applicable, file IRS Form 5330, Return

Line 9k(1). Waived Funding Deficiency Credit. Enter a

of Excise Taxes Related to Employee Benefit Plans, with the

credit for a waived funding deficiency for the current plan year

IRS to pay the excise tax on the funding deficiency. There is a

(Code section 431(b)(3)(C)). If a waiver of a funding deficiency

penalty for not filing the Form 5330 on time.

is pending, report a funding deficiency. If the waiver is granted

after Form 5500 or Form 5500-SF is filed, file an amended

Line 11. In accordance with ERISA section 103(d)(3), attach a

Form 5500 or Form 5500-SF, as applicable, with an amended

justification for any change in actuarial assumptions for the

Schedule MB to report the funding waiver (see Amended

current plan year and label the attachment “Schedule MB, line

Return/Report in the instructions for Form 5500 or Line B – Box

11 – Justification for Change in Actuarial Assumptions.”

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Instructions for Schedule MB (Form 5500)

2009 Instructions For Schedule Mb (Form 5500) Multiemployer Defined Benefit Plan And Certain Money Purchase Plan Actuarial Information Page 6

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