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403(b) Delayed Plan Termination


dangocek

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I've inherited a 403(b) plan that was intended to terminate in 2012. For reasons that are unclear, the annuity contracts in the plan were never distributed to participants in accordance with Rev. Rul. 2011-7. Instead, participants were contacted and asked to elect to withdraw their balances. Unsurprisingly, not all of the participants did so in a timely fashion. The plan was effectively forgotten until this summer, when 5500s were filed for 2013 and 2014 because the plan retained assets during those years.

After this TIAA-CREF was finally contacted and a termination/distributions of the annuities was requested. TIAA-CREF went forward with the termination and distributed the annuities, but backdated the termination to the date of the original resolutions in 2012. So now the question is how and for what year do we file a final 5500 if TIAA-CREF is treating 2012 as the year of termination and a full 5500 has already been filed for 2012, 2013, and 2014?

Obviously this also raises questions of whether or not the assets were distributed as soon as administratively practicable. Will the termination be deemed invalid, and, if so, what then? My understanding is that some of the assets were withdrawn by participants back in 2012.

Thanks for your help.

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Even if the plan's administrator is clear about the right reporting, it's practical to discuss the reporting with at least the independent qualified public accountant and, if the IQPA will seek any lawyer letter, each lawyer you will ask to furnish a lawyer.

Your description of the facts suggests also that there might be a need to amend the 2014, 2013, and 2012 reports.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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