PUBLIC LAW 109–280—AUG. 17, 2006
‘‘In the case of the following required installment: 1st ..................................................................... 2nd .................................................................... 3rd .................................................................... 4th ....................................................................
120 STAT. 843
The due date is: April 15 July 15 October 15 January 15 of the following year.
‘‘(D) AMOUNT OF REQUIRED INSTALLMENT.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The amount of any required installment shall be 25 percent of the required annual payment. ‘‘(ii) REQUIRED ANNUAL PAYMENT.—For purposes of clause (i), the term ‘required annual payment’ means the lesser of— ‘‘(I) 90 percent of the minimum required contribution (determined without regard to this subsection) to the plan for the plan year under this section, or ‘‘(II) 100 percent of the minimum required contribution (determined without regard to this subsection or to any waiver under section 302(c)) to the plan for the preceding plan year. Subclause (II) shall not apply if the preceding plan year referred to in such clause was not a year of 12 months. ‘‘(E) FISCAL YEARS AND SHORT YEARS.— ‘‘(i) FISCAL YEARS.—In applying this paragraph to a plan year beginning on any date other than January 1, there shall be substituted for the months specified in this paragraph, the months which correspond thereto. ‘‘(ii) SHORT PLAN YEAR.—This subparagraph shall be applied to plan years of less than 12 months in accordance with regulations prescribed by the Secretary. ‘‘(4) LIQUIDITY REQUIREMENT IN CONNECTION WITH QUARTERLY CONTRIBUTIONS.— ‘‘(A) IN GENERAL.—A plan to which this paragraph applies shall be treated as failing to pay the full amount of any required installment under paragraph (3) to the extent that the value of the liquid assets paid in such installment is less than the liquidity shortfall (whether or not such liquidity shortfall exceeds the amount of such installment required to be paid but for this paragraph). ‘‘(B) PLANS TO WHICH PARAGRAPH APPLIES.—This paragraph shall apply to a plan (other than a plan described in subsection (g)(2)(B)) which— ‘‘(i) is required to pay installments under paragraph (3) for a plan year, and ‘‘(ii) has a liquidity shortfall for any quarter during such plan year. ‘‘(C) PERIOD OF UNDERPAYMENT.—For purposes of paragraph (3)(A), any portion of an installment that is treated as not paid under subparagraph (A) shall continue to be
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