Jump to content

What exactly would be submitted to the IRS for EGTRRA?


Guest LMalone

Recommended Posts

Guest LMalone

I'm confused. We have received GUST approval on all of our clients' restated plans, using our volume submitter specimen. All of our clients also timely adopted the model EGTTRA addendum. The reliance on the good faith EGTTRA addendum expires in 2005.

What is the significance of this expiration? Are we to adopt something else? Are we in for another round of submissions?

Thanks for any guidance.

Link to comment
Share on other sites

Guest LMalone

Folks, I've had 56 hits on my question but no replies. Doesn't anyone have a thought or an answer for me?

Link to comment
Share on other sites

Another round of submissions is correct, although you can be sure that it will get delayed for years on end just like the GUST deadline was. I liken the process to the boy that cried wolf. The IRS is the boy and we are the townsfolks.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

Link to comment
Share on other sites

I liken the process to the boy that cried wolf.  The IRS is the boy and we are the townsfolks.

So, are you suggesting that the next time a "real" deadline approaches all of us townspeople ignore it and refuse to make submissions?

(TIC)

...but then again, What Do I Know?

Link to comment
Share on other sites

Ah, but that is the trick, to identify the real deadline, but then again, that was the trick for the townspeople, to identify the real wolf. They, of course, did not do so. So the moral of the story is to not be like the townspeople, even though it is a role for which you are being cast.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

Link to comment
Share on other sites

I don't have the cites handy, but there is an EGTRRA remedial amendment period. For pre-approved defined contribution plans (volume submitters and prototypes), the process of updating plans for EGTRRA will probably begin in 2005, the IRS will take 2 years to approve the underlying plan, and employers will have 2 years to update (it looks like the deadline for employer will be around 2009).

For individually designed plans, the process will probably begin in 2006 and employers will need to update based on the EIN of the employer (e.g., if EIN ends in 0 then updates will be 2010, 2015, 2020, etc.).

The rules and dates haven't been decided by the IRS yet. Expect more guidance later this year or in 2005. And, you probably won't need to worry about EGTRRA updates for employers until 2006 -- at the earliest.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...