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taxmap/pubs/p560-013.htm#TXMP75d9f007 Minimum Funding Requirement(p13)

Minimum Funding Requirement

In general, if your plan is a money purchase pension plan or a defined benefit plan, you must actually pay enough into the plan to satisfy the minimum funding standard for each year. Determining the amount needed to satisfy the minimum funding standard for a defined benefit plan is complicated. The amount is based on what should be contributed under the plan formula using actuarial assumptions and formulas. For information on this funding requirement, see section 412 and its regulations.

taxmap/pubs/p560-013.htm#TXMP1aba1006 Quarterly installments of required contributions.(p13)

If your plan is a defined benefit plan subject to the minimum funding requirements, you must make quarterly installment payments of the required contributions. If you do not pay the full installments timely, you may have to pay interest on any underpayment for the period of the underpayment.

taxmap/pubs/p560-013.htm#TXMP002acfe9 Due dates.(p13)

The due dates for the installments are 15 days after the end of each quarter. For a calendar-year plan, the installments are due April 15, July 15, October 15, and January 15 (of the following year).

taxmap/pubs/p560-013.htm#TXMP5aa4222f Installment percentage.(p13)

Each quarterly installment must be 25% of the required annual payment.

taxmap/pubs/p560-013.htm#TXMP1f247d79 Extended period for making contributions.(p13)

Additional contributions required to satisfy the minimum funding requirement for a plan year will be considered timely if made by 81/2 months after the end of that year.

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