American Stores Company and Subsidiaries - Page 26

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          refers to the deduction of contributions "In the taxable year               
          when paid".  However, section 404(a)(1)(A) does not specify the             
          method by which the actual amount of the deduction may be                   
          determined.                                                                 
               The applicable limitations on contributions to CBA Plans in            
          this case are contained in clauses (i) and (iii) of section                 
          404(a)(1)(A), which together provide that the overall limitation            
          is the greater of the amount necessary to satisfy the minimum               
          funding standard of section 412(a) for plan years ending within             
          the employer's taxable year, and an amount equal to the normal              
          cost of the plan, augmented by any amount necessary to amortize             
          unfunded costs equally over 10 years.  In addition, the flush               
          language at the end of subparagraph (A) of the foregoing section            
          provides, among other things, that the maximum amount deductible            
          for the taxable year is to equal the full funding limitation for            
          such year determined under section 412.                                     
               As a further refinement of the section 404(a) limitations on           
          the deductibility of contributions, section 413 provides certain            
          rules that apply exclusively to "Collectively bargained plans,              
          etc."  Section 413(a) provides that subsection (b) applies to any           
          plan (and any trust thereunder) maintained pursuant to a CBA;               
          i.e., a CBA Plan.  Various paragraphs of subsection (b) provide             
          rules that relate to CBA Plans, but the relevant paragraph for              








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