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Of all the questions, I would leaver preparer blank. Why announce to the world your client list?

I would add most IRS inquires also give you a fax number you can send a reply via that method. So if the concern is significant fax the reply with a mail follow up. The reality is both back when I worked for the IRS and now reply to the IRS I have never seen the reply date be all that hard and fast. They are more interested in a reply then when they get it as long as the time frame is reasonable.

I have normally called the agent and told them it was put in the mail on that day and they have not had any issues with it.

"does the fact that they terminated put them automatically into a reasonable business classification in that case?" While I absolutely think that this is a reasonable business classification, I don't think it alters the fact that you have to decide, before you ever get to that stage, whether you think you can use the ABT for coverage or not in a plan where everyone is in their own group. If you believe you can, then I don't think it matters. If you believe that you can't (or the IRS position is that you can't) then again, I don't think it matters. Interesting IRS comment, although I can't figure out what his real position is based on that! By the way, the sound you just heard was my head exploding.

No. A 457(b) plan and a 401(a) plan cannot be merged. The only way money from a 457(b) can be moved to a 401(a) plan, or vice versa, is if the employees are permitted to take their distributions in cash, and instead choose to have their money rolled over to the new plan. The IRS says: Thus, an employee could get a distribution from the 457(b) plan which the employee could roll over to the 401(a) plan, but no direct merger would be possible.