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Cycle 3 Document is Delayed


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We are using Datair for our Cycle 3 plan documents. They advised us they should become available by end of March but I'm not sure I trust that timeline.  What do I do with new 401k plans effective 1-1-21?  Draft using the old document, then restate next year?  Seems unfair for the company to spend the extra money on 2 documents a year apart.  Is there any way around this?  My answer may lie with the investment firm handling the investments but I am wondering what others are doing in this situation?

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14 hours ago, Bill Presson said:

We aren't charging a restatement fee for any client that hired us in the past year.

Ditto for us as well.  There was a cutoff - any new business past that cutoff isn't charged for the restatement.  But then again, we don't charge for incoming plan documents - so new business clients get a double freebie...

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We had decided to give a serious reduction in our fee for anyone who came on board in the last two years.  However we had not thought about the fact that if Datair had been on time, anyone who came on board since 08/01/2020 would have been automatically in the proper document.  I will mention that to the powers that be and see if we can provide those clients a free document.  That seems fair.  It's not their fault that we unwittingly picked the wrong document provider!

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43 minutes ago, ldr said:

It's not their fault that we unwittingly picked the wrong document provider!

We're in the same boat as a major modifier of Relius's document.  Actually, the document has been ready for some time.  The document "system" seems to be slipping -- and every time we get a new version to test, we uncover that the last round of "fixes" broke other things that weren't broken before....  We have plans to shop this service to see what else is out there once we catch our breath....  Other than FTW, any suggestions?(FTW is of course, on the list already)?

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Thank you for your responses.  I was thinking along the same lines of not charging for the restatement since it is not the Plan Sponsors fault the current document is not available. 

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Also extremely disappointed with the position Datair is putting us in with not having these documents ready yet.  We have clients needing amendments...response from Datair...well technically  the plan sponsor doesn't have to sign it until year end.  Um ok...but is that good client service? I'm impressed that Datair gave an estimated date?  I've been scouring the forums daily and haven't seen that posted...just "we are in the final stages of testing".  

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  • 2 weeks later...

Glad to know we are not the only ones who are frustrated, but sorry we are all in this boat!  If we didn't have their entire suite with Datair- administration, forms, and documents - we would probably be shopping too.  Their total lack of consideration to their clients is basically going to force all of us to do what used to be two years of work (each previous restatement cycle) in one year.  If their new document was available tomorrow, there's a learning curve in all organizations where the new document has to be read, discussed, and digested before one can run out and start applying it to clients.  Plus they ALL have bugs in the beginning, no matter the source of your documents.  So one must allow x amount of time for those activities before the "real work" can even begin.  Not Happy!

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What happened to McKay Hochman?  I have used their documents in the past, and attended their excellent seminars, and I saw something recently that said they are no longer in the document business.  What happened while I wasn't looking?

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8 minutes ago, ldr said:

What happened to McKay Hochman?  I have used their documents in the past, and attended their excellent seminars, and I saw something recently that said they are no longer in the document business.  What happened while I wasn't looking?

Acquired by ASC a few years ago.

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