Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

When a new plan is initially funded through the transfer of assets from a predecessor plan, how is the percentage of qualifying plan assets determined for the initial plan year?

April 26, 2017assets initially PERCENTAGE Plan predecessor Qualifying transfer

0

Posted

When a new plan is initially funded through the transfer of assets from a predecessor plan, how is the percentage of qualifying plan assets determined for the initial plan year?

1 Answer

0

Posted

You should make the determination by treating the new plan as not having a preceding reporting year and use the assets actually transferred from the predecessor plan to determine whether the new plan meets the 95% percentage condition for qualifying plan assets.