Leaderboard

Is the coverage ratio for each rate group equal to at least the midpoint between the safe harbor and unsafe harbor percentages?

Although as I think about it there is a possibility there is an IRS audit that happened around the time of the plan termination. If an IRS audit is happening they can be very long. You might want to see if it is an actual IRS audit or an IRS determination letter filing they are talking about. If they come back and say it is an actual IRS audit you might as well sit back and relax. There is no getting the IRS to move quickly on an audit.

They might have used the term IRS audit but what they most likely did was file with the IRS for what is known as a determination letter. The IRS will review the plan and give a letter saying they believe there are no issues with the plan at termination. It protects both the plan sponsor and you from the IRS raising issues on the plan and any payments you get years after the fact. Getting this letter is a good thing and standard practice. So most likely that part is basically true. The IRS is running VERY slow on the determination letter process and it is taking a long time to get those letter. I will admit 21 months is on the long end of things but not unheard of too happen. I am working on a few ESOPs that have been trying to terminate and get fully paid and we are in year 2. I am working on getting another one where the company was sold in April 2018 and it is just now we got the IRS letter and we are gong to pay in a few months. So the range of time can be long gap. I would try and go back and see if they can give you any better information. They are most likely not wanting to give you a date as they really don't know when the IRS will produce the letter. When you say you got the first half was it really 50% or more like 70-80%. If it was closer to 50% see if they are willing to pay another 10-20% but realize that will increase the plans expenses which will decrease the total amount you get. If you got closer to 70-80% you might want to wait longer. The money is in a trust so it ought to be safe and there when the time comes for you to get paid. I understand the frustration but it can be a slow process.

So you'd have to have 3 forms - one for those who want both benes the same, one for the retirement plan and one for the policy if they want to name different benes. That sounds like more complexity to me, and as noted above, explaining the conditions and requirements just makes it worse.