Search the Community

An IRS-preapproved plan’s adoption agreement has a fill-in for the effective date of the cycle 3 restatement. (But that date does not apply to a provision for which the basic plan document, the adoption agreement, an “addendum”, or something else in the IRS-preapproved documents specifies a special effective date.) Imagine the user’s plan has for decades used the calendar year for the plan year, limitation year, and other provisions. If in July 2022 a user specifies a date on the fill-in for the general restatement date, what would you choose: July 31, 2022? July 1, 2022? January 1, 2022? Something else? What is your reasoning for the restatement date you choose?

large MPP plan, single employer - sponsor has 52/23 week fiscal year ending Saturday closest to 11/30. The plan document has had the same fiscal year as the sponsor. The 2014 Form 5500 was filed for PYE 11/28/2015. Plan sponsor changed TPAs; new TPA amended the plan to be 11/30 year end, although plan sponsor still has 52/53 week fiscal year. 2015 Form 5500 prepared by new TPA shows plan year dates 12/1/2015 - 11/30/2016. What happens to the two days between the end of the 2014 plan year and the beginning of the 2015 plan year? Should the 5500 just cover those days and state the plan year is 11/29/15 - 11/30/16? Same question for audited financial statements. Thanks.

Must an individually designed profit sharing and 401(k) plan be restated according to the 5 year cycle, if there are no amendments needed? The plan was amended and restated in 2010 and incorporated all of the required PPA, Heart, EGGTRA, etc. amendments. It's already compliant with Windsor and upon a quick review of the cumulative list of changes in qualification requirements it appears to be compliant. However, under the rules re: the remedial cycle in effect at the time the plan should have been restated in 2015 and the plan should have filed for a determination letter. My interpretation is that the only error was a failure to apply for a determination letter in 2015. Is this considered a "nonamender" failure if there are no amendments that were failed to be adopted? Does the plan need to correct through VCP, or simply file for a determination letter at this time? Any guidance would be appreciated.

I have a client with a defined contribution 403(b) with deferrals and match, on a 2008 Ascensus 403(b) document provided through TIAA-CREF - considered a large plan and requires an audit. Qualified plans were required to restate their plan documents for PPA by April 30, 2016. Is there a similar restatement requirement for 403(b) plans? If so, what is the restatement deadline?

Individual receiving benefits from plan is the only remaining participant in plan. Plan sponsor is no longer around. Advisor wants to know if plan needs to be restated for PPA. If not, why? If so, how should they go about restating?

FACTS: ESOP plan effective 01/01/2012, Cycle D (submission period ending 01/31/2015). This plan is not a "true" ESOP. It has no loans and no shares contributed. The Employer made a cash contribution in 2012 with the intention of buying stock, but never ended up doing so. The only accounts in the plan are cash accounts (profit sharing). The Employer was talked into this plan by their prior TPA and has since terminated their services and has hired us to takeover and terminate this ESOP. In addition, the client has a 401k plan that is effective 11/01/1984 that we are also taking over and this plan will be continuing. The Employer wishes to terminate the ESOP effective 08/01/2014. Concern: I'm concerned that the ESOP document is not updated according to the current cumulative list (2013) since the plan is effective 01/01/2012 (adopted in December 2012). In addition, I do not believe the plan was submitted for Determination Letter off-cycle (new plan exemption). So no DL has ever been issued. My concern is what if the plan were to be audited? Question: Rather than restating to another ESOP document for Cycle D, can we restate the plan to a "profit sharing" plan on a pre-approved PPA Document effective 01/01/2014 and then terminate the plan effective 08/14/2014? Or should I not worry about restating the plan and just do a board resolution to terminate it and be done with it? Any suggestions or thoughts are appreciated. We do not provide document services for ESOP so I am way out of comfort zone here. Thank you!