2009 Instructions For Schedule Sb (Form 5500) Single-Employer Defined Benefit Plan Actuarial Information Page 4

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attachment “Schedule SB, Line 7 – Explanation of
required contribution for the prior year by the funding standard
Discrepancy in Prior Year Funding Standard Carryover
carryover balance or the prefunding balance, calculate the
Balance or Prefunding Balance.” Note that elections to add
interest on that contribution (or portion of a contribution) using
interest-adjusted excess contributions or reduce balances have
the actual rate return on assets reported on line 10 instead of
specific deadlines, and generally cannot be changed once they
the effective interest rate.
have been made.
Line 11c. Enter the sum of lines 11a and 11b.
If this is the first year for which the plan is subject to the
Line 11d. Enter the amount of the excess contributions for the
minimum funding rules of ERISA section 303 or Code section
prior year (with interest) that the plan sponsor elected to use to
430, leave both columns blank.
increase the prefunding balance. This amount cannot be
Line 8. Portion Used To Offset Prior Year’s Funding
greater than the amount reported on line 11c.
Requirement. Report the amount for each column from the
If this is the first year for which the plan is subject to the
corresponding column of line 35 of the prior-year Schedule SB.
minimum funding rules of ERISA section 303 or Code section
If the valuation date is not the first day of the plan year, report
430, leave lines 11a – d blank.
the amounts from line 35 of the prior-year Schedule SB,
Line 12. Reduction in Balances Due to Elections or Deemed
discounted to the beginning of the prior plan year using the
Elections. In each column, enter the amount by which the
effective interest rate for the prior plan year.
employer elects to reduce (or is deemed to elect to reduce, per
If this is the first year for which the plan is subject to the
ERISA section 206(g)(5)(C) and Code section 436(f)(3)) the
minimum funding rules of ERISA section 303 or Code section
funding standard carryover balance or prefunding balance, as
430, leave both columns blank.
applicable, under ERISA section 303(f) and Code section
Special rule for late election to apply balances to
430(f). This amount cannot be greater than the sum of the
quarterly installments. If an election was made to use the
amounts reported in the corresponding column of lines 9, 10
funding standard carryover balance or the prefunding balance
and, if applicable, 11d. Note that an election (or deemed
to offset the amount of a required quarterly installment, but the
election) cannot be made to reduce the prefunding balance in
election was made after the due date of the installment, the
column (b) until the funding standard carryover balance in
amount reported on line 8 may not be the same as the amount
column (a) has been reduced to zero.
reported on line 35 for the prior year. Refer to the Income Tax
If the valuation date is not the first day of the plan year,
Regulations under section 430 of the Code for additional
adjust the amounts reported in line 12 to the first day of the plan
information. An attachment to Schedule SB should explain why
year, using the effective interest rate for the current plan year. If
the amount is different. Label the attachment “Schedule SB,
the plan did not exist in the prior year and is not a successor
line 8 – Late Election to Apply Balances to Quarterly
plan, leave both columns blank.
Installments.”
If this is the first year for which the plan is subject to the
Line 9. Amount Remaining. Enter the amount equal to line 7
minimum funding rules of ERISA section 303 or Code section
minus line 8 in each column.
430, leave column (b) blank.
If this is the first year that the plan is subject to the minimum
Line 13. Balance at Beginning of Current Year.
funding requirements of ERISA section 303 or Code section
Column (a) -- Enter the sum of the amounts reported on lines
430, enter the amount of any credit balance at the end of the
9 and 10 of column (a), minus the amount reported on line 12 of
prior year (the “pre-effective plan year”) on line 9, column (a),
column (a).
and leave line 9, column (b), blank. The amount entered on line
Column (b) -- Enter the sum of the amounts reported on lines
9, column (a) is generally the amount reported on line 9o of the
9, 10 and 11d of column (b), minus the amount reported on line
2007 Schedule B form that was submitted as an attachment to
12 of column (b).
the Schedule SB for the pre-effective plan year. If there has
If this is the first year for which the plan is subject to the
been any adjustment to this amount so that it does not match
minimum funding rules of ERISA section 303 or Code section
the amount so reported for the pre-effective plan year, attach an
430, leave column (b) blank.
explanation and label the attachment“ Schedule SB, Line 9 –
Explanation of Credit Balance Discrepancy.”
Specific Instructions for Part III — Funding
Line 10. Interest on Line 9. Enter the actual rate of return on
Percentages
plan assets during the preceding plan year in the space
Enter all percentages in this section by truncating at .01% (e.g.,
provided. Enter the rate to the nearest .01% (e.g., 6.53%). If
report 82.649% as 82.64%).
entering a negative number, enter a minus sign (“ – ”) to the left
Line 14. Funding Target Attainment Percentage. Enter the
of the number. In each column, enter the product of this interest
funding target attainment percentage (FTAP) determined in
rate and the amount reported in the corresponding column of
accordance with ERISA section 303(d)(2) and Code section
line 9.
430(d)(2). The FTAP is the ratio (expressed as a percentage)
If this is the first year for which the plan is subject to the
which the actuarial value of plan assets (reduced by the funding
minimum funding rules of ERISA section 303 or Code section
standard carryover balance and prefunding balance) bears to
430, leave both columns blank.
the funding target determined without regard to the additional
Line 11. Prior Year’s Excess Contributions to be Added to
rules for plans in at-risk status.
Prefunding Balance.
For plans that are not in at-risk status, this percentage is
Line 11a. Enter the amount reported in line 38 on the
determined by subtracting the sum of the amounts reported in
Schedule SB for the 2008 plan year, adjusted for interest to the
line 13 from line 2b and dividing the result by the funding target
valuation date for the 2008 plan year, if the amount was
reported in line 3d, column (2), for plans that are not in at-risk
reported on the 2008 Schedule SB as of any other date.
status (line 4a for plans that are in at-risk status). If the plan’s
Line 11b. Enter the effective interest rate for the prior plan
valuation date is not the first day of the plan year, adjust the
year, as reported on line 5 of the Schedule SB for the prior plan
amounts reported in line 13 for interest between the beginning
year, in the space provided. Enter the rate to the nearest .01%
of the plan year and the valuation date before subtracting those
(e.g., 6.35%). Enter the product of that rate and the amount
amounts from the amount reported in line 2b, using the effective
reported on line 11a. However, if the valuation date is not the
interest rate for the current plan year.
first day of the plan year, report the amount of interest (at the
Line 15. Adjusted Funding Target Attainment Percentage.
rate reported on this line 11b) for the period between the prior
Enter the adjusted funding target attainment percentage
year’s valuation date and the end of the prior plan year.
(AFTAP) determined in accordance with Code section 436(j)(2)
Note. Under the regulations, if a contribution (or a portion of a
and ERISA section 206(g)(9)(B). The AFTAP is generally the
contribution) reported on line 11a is an excess contribution
same as the FTAP reported in line 14, except that both the
solely because an election was made to offset the minimum
assets and the funding target used to calculate the AFTAP are
-58-
Instructions for Schedule SB (Form 5500)

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