An April year-end plan terminates on 4/1/2005. Come 10/1/2005, the plan sponsor decides to call off the termination and proceed merrily along with the plan. Being this termination recission is past the 412©(8) deadline do I:

a) continue to prorate the NC and amortization bases by 11/12 or;
b) treat the plan as not terminated and not prorate them?

I can't say I have ever had this happen before. However, I am leaning toward the latter option as Rev. Rul. 79-237 describes a plan that is terminating and this one is not, well at least not now.

Does anyone other than you, the PA and the attorney know about the plan's termination?

I can't point to anything more definite, but I like option B as well (terminate the plan but not pro-rate). I'd almost think you'd have to file an amended return later if you didn't. Also, I'm not sure termination resolutions are amendments to the plan per se, so I'm not sure 412©(8) necessarily applies to their revokation, although I realize the plan may have concurrently been frozen which would be an amendment. I'm still voting for plan B.

Effen, just me, the client and the CPA.

Jay, we are thinking the same.

I agree.

Not that you need another voice but the plan did not terminate. Period. IMHO.