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ortization charge for such plan year and succeeding 
plan years, the waiver amortization base for all pre-
ceding plan years shall be reduced to zero. 
‘‘(f) REDUCTION OF MINIMUM REQUIRED CONTRIBU-
TION BY PRE-FUNDING BALANCE AND FUNDING STAND-
ARD CARRYOVER BALANCE.— 
‘‘(1) ELECTION TO MAINTAIN BALANCES.— 
‘‘(A) PRE-FUNDING BALANCE.—The plan 
sponsor of a single-employer plan may elect to 
maintain a pre-funding balance. 
‘‘(B) FUNDING
STANDARD
CARRYOVER 
BALANCE.— 
‘‘(i) IN GENERAL.—In the case of a 
single-employer plan described in clause 
(ii), the plan sponsor may elect to maintain 
a funding standard carryover balance, until 
such balance is reduced to zero. 
‘‘(ii) PLANS
MAINTAINING
FUNDING 
STANDARD ACCOUNT IN 2006.—A plan is 
described in this clause if the plan— 
‘‘(I) was in effect for a plan year 
beginning in 2006, and 
‘‘(II) had a positive balance in 
the funding standard account under 
section 302(b) as in effect for such
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plan year and determined as of the 
end of such plan year. 
‘‘(2) APPLICATION OF BALANCES.—A pre-fund-
ing balance and a funding standard carryover bal-
ance maintained pursuant to this paragraph— 
‘‘(A) shall be available for crediting against 
the minimum required contribution, pursuant to 
an election under paragraph (3), 
‘‘(B) shall be applied as a reduction in the 
amount treated as the value of plan assets for 
purposes of this section, to the extent provided 
in paragraph (4), and 
‘‘(C) may be reduced at any time, pursu-
ant to an election under paragraph (5). 
‘‘(3) ELECTION TO APPLY BALANCES AGAINST 
MINIMUM REQUIRED CONTRIBUTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C), in the case of any 
plan year in which the plan sponsor elects to 
credit against the minimum required contribu-
tion for the current plan year all or a portion 
of the pre-funding balance or the funding 
standard carryover balance for the current plan 
year (not in excess of such minimum required 
contribution), the minimum required contribu-
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tion for the plan year shall be reduced by the 
amount so credited by the plan sponsor. For 
purposes of the preceding sentence, the min-
imum required contribution shall be determined 
after taking into account any waiver under sec-
tion 302(c). 
‘‘(B) 
COORDINATION
WITH
FUNDING 
STANDARD CARRYOVER BALANCE.—To the ex-
tent that any plan has a funding standard car-
ryover balance greater than zero, no amount of 
the pre-funding balance of such plan may be 
credited under this paragraph in reducing the 
minimum required contribution. 
‘‘(C) LIMITATION
FOR
UNDERFUNDED 
PLANS.—The preceding provisions of this para-
graph shall not apply for any plan year if the 
ratio (expressed as a percentage) which— 
‘‘(i) the value of plan assets for the 
preceding plan year (as reduced under 
paragraph (4)(C)), bears to 
‘‘(ii) the funding target of the plan for 
the preceding plan year (determined with-
out regard to subsection (i)(1)), 
is less than 80 percent.
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‘‘(4) EFFECT
OF
BALANCES
ON
AMOUNTS 
TREATED AS VALUE OF PLAN ASSETS.—In the case 
of any plan maintaining a pre-funding balance or a 
funding standard carryover balance pursuant to this 
subsection, the amount treated as the value of plan 
assets shall be deemed to be such amount, reduced 
as provided in the following subparagraphs: 
‘‘(A) APPLICABILITY OF SHORTFALL AM-
ORTIZATION BASE.—For purposes of subsection 
(c)(5), the value of plan assets is deemed to be 
such amount, reduced by the amount of the 
pre-funding balance, but only if an election 
under paragraph (2) applying any portion of 
the pre-funding balance in reducing the min-
imum required contribution is in effect for the 
plan year. 
‘‘(B) DETERMINATION OF EXCESS ASSETS, 
FUNDING SHORTFALL, AND FUNDING TARGET 
ATTAINMENT PERCENTAGE.— 
‘‘(i) IN
GENERAL.—For purposes of 
subsections (a), (c)(4)(B), and (d)(2)(A), 
the value of plan assets is deemed to be 
such amount, reduced by the amount of 
the pre-funding balance and the funding 
standard carryover balance.