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Should client file a Form 5310 when terminating a standardized prototy


Cathy from Chicago
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We have a standard prototype 401(k) which will be terminating as the Company was purchased. Typically we do not file IRS 5310 for a standard prototype plan termination but do notify employees of the plan termination as well as explain distribution options, etc. The attorneys hired to handle sale of the Company now think they should file a 5310 for the 401(k)and, of course, want us to provide all the backup document information, etc. Do all of you apply for a determination when terminating a run of the mill plan? Thanks.

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Ditto. We put our recommendation in writing. If the client does not want to file for a determination letter, we get a written statement from them.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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