Code of Federal Regulations Title 26. Internal Revenue § 26.1.412(b)–2 Amortization of experience gains in connection with certain group deferred annuity contracts

(1) The plan is funded solely through a group deferred annuity contract,

(2) The annual single premium required under the contract for the purchase of the benefits accruing during the plan year is treated as the normal cost of the plan for that year, and

(3) The amount necessary to pay in equal annual installments, over the appropriate amortization period, an amount equal to the single premium necessary to provide all past service benefits not initially funded, together with interest thereon, is treated as the annual amortization amount determined under section 412(b)(2)(B)(i), (ii) or (iii).