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Individually designed CB plan without a FDL


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We have recently taken over an individually designed cash balance plan effective 11/1/2007. The prior TPA argues that because it was an individually designed plan, it was not required to be restated for EGTRRA. The plan was, however, amended for 436 and HEART. In addition, I find it concerning that the original plan document does not come with a favorable determination letter. Is it correct that this individually designed plan does not require a FDL or any restatements? Would appreciate any guidance you can provide. 

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No Plan is REQUIRED to have a letter of determination from the IRS.

All Plans are required to be timely amended for any law changes. The changes are are in the IRS List of Required Modifications.

The effect of not having an IRS DL is IRS that can go back to day 1 of plan and look for potentially disqualifying language defects or missed amendments.

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And there could be other issues - if another plan or IRA that is asked to accept a rollover wants proof that the plan is qualified, or if a participant is filing bankruptcy and looking to protect qualified plan benefits from creditors.

Having a FDL is not required but it is certainly advisable.

That the prior TPA, rather than the client, is making the argument raises a big red flag to me - I would have a meeting with the client and then suggest you go over every thing with a fine-toothed comb.

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If it was effective 11/1/2007 it probably (would need to check document) was fully compliant with EGTRRA from the get-go. (EGTRRA was enacted in 2001.) 436 was PPA 2006, so look to see if the other PPA requirements (e.g., qualified optional survivor annuities), rollover changes, etc. were included. If were not, probably need to submit VCP as nonamender.

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