FAQ 884: Quarterly Interest Program and PLANCNTB screen

Problem: Please provide instructions on how to determine discounted contributions.

Solution: The Calculations > Actuarial > Quarterly Interest routine uses the contribution information entered in the Plan Specifications Costs \ PLANCNTB screen, and in some cases, additional information noted below. DATA INPUT IN PLANCNTB SCREEN Enter the date, amount, and category (and additional input as noted) for all contributions where the following categories are available: A - Corresponds to line 19a of the SB report for an unpaid minimum required contribution from a prior plan year. Additional Input for Category A contribution - Enter the valuation date and associated effective interest rate for the plan year that the unpaid minimum required contribution is applied to. If quarterly contributions were due for the plan year with the unpaid minimum, enter the quarterly contribution amounts for that plan year in the Calculations > Actuarial > Quarterly Interest in the Category A Contributions button menu. B - Corresponds to line 19b of the SB report for the current plan year and represents a contribution made to avoid benefit restrictions under IRC 436. Additional Input for Category B contribution - Enter the valuation date and associated effective interest rate for the plan year that the IRC 436 contribution is applied to. C - Corresponds to line 19c of the SB report and represents a contribution made to satisfy the minimum required contribution for the current plan year. R - For Beginning of Year (BOY) valuations only. These are contributions made during the current plan year that apply to the prior plan year. Only contributions made during the first 8-1/2 months of the plan year should be entered. Additional Input for Category R contribution - Enter the valuation date and associated effective interest rate for the prior plan year that the receivable contribution is applied to. ADDITIONAL CODING/RESULTS NEEDED The CONTRIBLY > Minimum Contribution input is required (generally updated during Calculations > Update to New Period) and the current year's COSTS > CONTRIB > PPA Minimum needs to be calculated before quarterly contribution requirements can be determined. RUNNING QUARTERLY INTEREST PROGRAM Press the Calculations > Actuarial > Quarterly Interest > Recalculate button to have the amounts and dates of the quarterlies calculated. When you click OK to run the Calculations > Actuarial > Quarterly Interest routine, the last column on the Costs \ PLANCNTB screen will be populated with the adjusted value of the contributions. Additional calculation results are also stored in the following fields on the Costs \ CONTRIB screen: Pre-Contributions, Interest on Pre-Contributions, Adjusted Pre-Contributions, Discounted Contributions, and Discounted B Category Contributions. The Quarterly Interest routine includes the following report options: 1) Print contribution listing - This report prints out a listing of the dates and amounts of the contributions entered on the Costs \ PLANCNTB screen 2) Print Schedule SB attachment - This report prints out a listing of the dates, amounts, applicable years and interest rates, and adjusted amounts that can be used for the Schedule SB line 19 attachment. 3) Print receivable contributions - For BOY valuations, this report prints out a listing of the dates and amounts of the contributions entered on the Costs \ PLANCNTB screen coded with Category R. 4) Print pre-contrib and interest report - For EOY valuations, this report prints out a listing of the dates and amounts of the contributions entered on the Costs \ PLANCNTB screen coded with Category C but deposited prior to the plan's valuation date ADDITIONAL INFORMATION FOR BOY VALUATION DATE PLANS Contributions made after the end of a plan year are transferred during the Calculations > Update to New Period to the next year's file as category R contributions with the valuation date and effective interest rate for the prior plan year. When the Quarterly Interest program is run, the discounted value of category R contributions is stored in the Quarterly Int / Rcvbl Contribution field on the Costs \ CONTRIB screen and added to the Actuarial Value of Assets for funding purposes.