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Today's BL newsletter included a link to a NAPA article on the subject. https://www.napa-net.org/news-info/daily-news/irs-confirms-review-changes-vcp-enforcement-audit-process It sounds like they won't refer you to audit on day 22, but they want to make sure you know it's on the table if you leave them hanging.

I have seen it happen both with major gains and major losses, but you make a good point. They are more common with losses, but still pretty rare (from what I have seen). Most of the special valuations I have done, have had more than one factor. For example, a major loss combined with an HCE requesting a very large in-service distribution, or a distribution of a large part of the pooled account, etc.

In my opinion, a classic problem for a pooled account plan. If this was allocated, I would argue for payment without delay. To wait and have the market go down more is to invite a lawsuit. As several above have articulated, what is the point? This plan should have an established "business" practice for acting on distribution paperwork and should follow it regardless of what the market is doing. PNJ

IRS anticipates window opening on 8/1/20 and will close 2 years later (7/31/22). Just a few months late.

No.

No problem, as long as 410b and 401a4 pass, which they very well could easily if you have a lot of non-excludable HCEs who do not benefit. BUT, you still need to allocate under the terms of the plan (and the terms of the employer's declaration of profit sharing). If the PS is declared as going to A, B and C but B got excluded by mistake, I see that as a problem. If PS is declared by each company separately, and A and C declare PS while B does not, then no problem (subject to testing of course). Remember, if the employer(s) designates each individual's PS then there should be declaration, documentation, memo, etc. as to that effect and as to the actual allocations.