Source: http://taxtv.com/code/00373-USCODE-2011-title26-subtitleA-chap1-subchapD-partIII-subpartB-sec436/
Timestamp: 2017-11-23 15:03:12
Document Index: 628438532

Matched Legal Cases: ['§436', '§436', '§436', '§113', '§101', '§203', '§101', '§101', '§101', '§101', '§101', '§101', '§203', '§113', '§101', '§203', '§203']

IRC §436. Funding-based limits on benefits and benefit accruals under single-employer plans - TaxTV.com
IRC §436. Funding-based limits on benefits and benefit accruals under single-employer plans
View related content: IRC §436
Paragraph (1) shall not apply to any amendment which provides for an increase in benefits under a formula which is not based on a participant’s compensation, but only if the rate of such increase is not in excess of the contemporaneous rate of increase in average wages of participants covered by the amendment.
A defined benefit plan which is a single-employer plan shall provide that, in any case in which the plan’s adjusted funding target attainment percentage for a plan year is less than 60 percent, the plan may not pay any prohibited payment after the valuation date for the plan year.
A defined benefit plan which is a single-employer plan shall provide that, in any case in which the plan’s adjusted funding target attainment percentage for a plan year is less than 60 percent, benefit accruals under the plan shall cease as of the valuation date for the plan year.
In any case in which no certification of the adjusted funding target attainment percentage for the current plan year is made with respect to the plan before the first day of the 10th month of such year, for purposes of subsections (b), (c), (d), and (e), such first day shall be deemed, for purposes of such subsection, to be the valuation date of the plan for the current plan year and the plan’s adjusted funding target attainment percentage shall be conclusively presumed to be less than 60 percent as of such first day.
Nothing in this subsection shall be construed as affecting the plan’s treatment of benefits which would have been paid or accrued but for this section.
The term “adjusted funding target attainment percentage” means the funding target attainment percentage which is determined under paragraph (1) by increasing each of the amounts under subparagraphs (A) and (B) of section 430(d)(2) by the aggregate amount of purchases of annuities for employees other than highly compensated employees (as defined in section 414(q)) which were made by the plan during the preceding 2 plan years.
(3) 1 Application to plans which are fully funded without regard to reductions for funding balances
Subparagraph (A) shall be applied to plan years beginning after 2007 and before 2011 by substituting for “100 percent” the applicable percentage determined in accordance with the following table:
In the case of a plan year
beginning in calendar year:
(3) 1 Special rule for certain years
Solely for purposes of any applicable provision—
(i) such percentage, as determined without regard to this paragraph, or
(ii) the adjusted funding target attainment percentage for such plan for the plan year beginning after October 1, 2007, and before October 1, 2008, as determined under rules prescribed by the Secretary.
(i) subparagraph (A) shall apply to plan years beginning after December 31, 2007, and before January 1, 2010, and
(ii) subparagraph (A)(ii) shall apply based on the last plan year beginning before November 1, 2007, as determined under rules prescribed by the Secretary.
(C) Applicable provision
For purposes of this paragraph, the term “applicable provision” means—
(i) subsection (d), but only for purposes of applying such paragraph to a payment which, as determined under rules prescribed by the Secretary, is a payment under a social security leveling option which accelerates payments under the plan before, and reduces payments after, a participant starts receiving social security benefits in order to provide substantially similar aggregate payments both before and after such benefits are received, and
(ii) subsection (e).
(m) Special rule for 2008
(Added Pub. L. 109–280, title I, §113(a)(1)(B), Aug. 17, 2006, 120 Stat. 847; amended Pub. L. 110–458, title I, §101(c)(2), Dec. 23, 2008, 122 Stat. 5097; Pub. L. 111–192, title II, §203(a)(2), June 25, 2010, 124 Stat. 1300.)
2010—Subsec. (j)(3). Pub. L. 111–192 added par. (3) relating to special rule for certain years.
2008—Subsec. (b)(2). Pub. L. 110–458, §101(c)(2)(A), substituted “section 430” for “section 303” in introductory provisions and “an adjusted funding” for “a funding” in subpar. (B).
Subsec. (b)(3). Pub. L. 110–458, §101(c)(2)(B), inserted “benefit” after “event” in heading and substituted “an event” for “any event” in subpar. (B).
Subsec. (f)(1)(D). Pub. L. 110–458, §101(c)(2)(D)(i), inserted “adjusted” before “funding”.
Subsec. (f)(2). Pub. L. 110–458, §101(c)(2)(D)(ii), substituted “prefunding balance or funding standard carryover balance under section 430(f)” for “prefunding balance under section 430(f) or funding standard carryover balance”.
Subsec. (j)(3)(A). Pub. L. 110–458, §101(c)(2)(E)(i), struck out “without regard to this paragraph and” before “without regard to the reduction” and substituted “section 430(f)(4)” for “section 430(f)(4)(A)” and “paragraphs (1) and (2)” for “paragraph (1)”.
Subsec. (j)(3)(C). Pub. L. 110–458, §101(c)(2)(E)(ii), substituted “without regard to the reduction in the value of assets under section 430(f)(4)” for “without regard to this paragraph” and inserted “beginning” before “after” in two places.
Pub. L. 111–192, title II, §203(c), June 25, 2010, 124 Stat. 1300, provided that:
Pub. L. 109–280, title I, §113(b), Aug. 17, 2006, 120 Stat. 852, as amended by Pub. L. 110–458, title I, §101(c)(3), Dec. 23, 2008, 122 Stat. 5098, provided that:
Pub. L. 111–192, title II, §203(b), June 25, 2010, 124 Stat. 1300, provided that: “Section 203 of the Worker, Retiree, and Employer Recovery Act of 2008 [Pub. L. 110–458, set out below] shall apply to a plan for any plan year in lieu of the amendments made by this section applying to sections 206(g)(4) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1056(g)(4)] and 436(e) of the Internal Revenue Code of 1986 only to the extent that such section produces a higher adjusted funding target attainment percentage for such plan for such year.”
Pub. L. 110–458, title II, §203, Dec. 23, 2008, 122 Stat. 18, provided that: “In the case of the first plan year beginning during the period beginning on October 1, 2008, and ending on September 30, 2009, sections 206(g)(4)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)(4)(A)) and 436(e)(1) of the Internal Revenue Code of 1986 shall be applied by substituting the plan’s adjusted funding target attainment percentage for the preceding plan year for such percentage for such plan year but only if the adjusted funding target attainment percentage for the preceding plan year is greater.”
1 So in original. Two pars. (3) have been enacted.