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  • Sample Plan Amendment For Section 436

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Sfy 436 of the Internal Revenue Code regarding limitations on the accrual and payment of benefits under certain underfunded single employer defined benefit plans. This notice also extends both the deadline to amend a plan to satisfy 436 and the period during which such an amendment is eligible for relief from the anti-cutback requirements of 411(d)(6). II. Background A. Section 436 Section 412 provides minimum funding requirements that generally apply to pension plans qualified under.

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A plan's adjusted funding target attainment percentage for the plan year as defined in section 436(j) (AFTAP), as certified by the plan's enrolled actuary or determined under the presumption rules of section 436(h), is used to determine whether the plan is underfunded for purposes of the limitations under section 436.

Code Section 436 (Funding-based) Benefit Limits Benefit accruals must be frozen; Plan may not pay lump sums or other accelerated distributions; no amendment increasing benefits may take effect; UCEBs cannot be paid unless immediately funded. Benefit accruals are not restricted.

The adjusted funding target attainment percentage (AFTAP) is calculated in the same manner as the FTAP except that both the value of plan assets and the funding target are increased by the aggregate amount of annuities purchased by the plan for plan participants other than highly compensated employees during the two ...

The funding target attainment percentage of a plan is a measure of how well the plan is funded on a particular date. This percentage for a plan year is obtained by dividing the Plan's Net Plan Assets by Plan Liabilities on the Valuation Date.

This is the funded status measure provided by the plan's actuary calculated as the ratio of adjusted plan assets to the adjusted funding target as of the plan valuation date. The actuarial certification of a plan's AFTAP for a given plan year is generally provided by the first day of the fourth month of the plan year.

Benefit limitations for underfunded defined benefit plans Section 436 of the Code provides limits on benefits and benefit accruals under single-employer defined benefit pension plans, which are applied based on the plan's adjusted funding target attainment percentage (AFTAP) for a plan year.

Section 436, which was also added by PPA '06, sets forth a series of limitations on the accrual and payment of benefits under an underfunded plan. The payments that are limited by section 436 include payments of unpredictable contingent event benefits, as defined in Regs.

Code Section 436 (Funding-based) Benefit Limits Benefit accruals must be frozen; Plan may not pay lump sums or other accelerated distributions; no amendment increasing benefits may take effect; UCEBs cannot be paid unless immediately funded. Benefit accruals are not restricted.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232