Dougsbpc Posted April 10, 2008 Share Posted April 10, 2008 Does a plan with a prototype document automatically become an individual design when administerd by anyone other than the prototype sponsor? Can amendments be done to prototypes? Thanks. Link to comment Share on other sites More sharing options...
J Simmons Posted April 10, 2008 Share Posted April 10, 2008 The prototype retains its status as such despite the plan being administered by someone other than the prototype sponsor, so long as the employer continues the document relationship with the prototype sponsor. That relationship is as a 'subscriber' to the prototype document via the adoption agreement (and terms as agreed between the prototype sponsor and the employer). An amendment to the adoption agreement that simply switches from one of the listed options to another on any design parameter does not render the plan to be individually designed. However, an amendment to vary any of the terms set forth in the prototype plan document, or to attempt a design option not presented on the adoption agreement, will render the plan to be individually designed. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation. Link to comment Share on other sites More sharing options...
Dougsbpc Posted April 10, 2008 Author Share Posted April 10, 2008 Thanks JSimmons. In this case an amendment was done that was word for word with the prototype language. The benefit formula was simply amended from 3.75% of pay to 4.00% of pay. Link to comment Share on other sites More sharing options...
Mike Preston Posted April 10, 2008 Share Posted April 10, 2008 It is still a prototype. Probably. I have heard some prototype sponsors tell their clients that, once they stop being an administrative client, that the prototype sponsor will no longer maintain the plan. Fair enough. But they go further, and state that any required amendments which are done on behalf of the prototype sponsor's clients (that is, an amendment made to the underlying prototype by the prototype sponsor, without the need for an individual client to execute anything) will NOT apply to their plan and, therefore, as of that first moment when the plan maintained by the client and the "real" prototype plan are different, the client's plan stops being a prototype and is, at that point, an individually designed plan. The prototype sponsor has a vested interest in saying to the client that the plan stops being a prototype the minute it is no longer on the prototype sponsor's list of "clients". I'm not sure that is correct, but it serves the prototype sponsor's interests so I understand why they advance it. Link to comment Share on other sites More sharing options...
John Feldt ERPA CPC QPA Posted April 10, 2008 Share Posted April 10, 2008 And, if that is true, a further result could be that their restatement deadline is different (5-year cycle instead of 6-year cycle). Link to comment Share on other sites More sharing options...
Blinky the 3-eyed Fish Posted April 14, 2008 Share Posted April 14, 2008 We just have them sign an 8905 to keep the 6-year cycle without question. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs." Link to comment Share on other sites More sharing options...
J Simmons Posted April 15, 2008 Share Posted April 15, 2008 Another way that the prototype can be rendered to be individually designed is if the employer rejects, for its plan, an amendment that the sponsor makes to the prototype. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation. Link to comment Share on other sites More sharing options...
Recommended Posts
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 accountSign in
Already have an account? Sign in here.
Sign In Now