Necessary to Re-Terminate Plan?

[Christine Roberts]

A single-participant DB plan is terminated in 1985 and a favorable Determination Letter for the termination issues 2 years later. However, plan assets are not distributed due to difficulty of locating IRA custodian/trustees for certain unusual plan assets. Plan continues to file Form 5500 EZ to current day; plan assets remain undistributed (but IRA custodian/trustees now are equipped to house plan assets).

Due to ongoing existence of wasting trust is it necessary or preferable to re-terminate the plan? Or simply file final Form 5500 EZ?

[k man]

I just dealt with the exact same situation. I think you need to file a final 5500 but make sure you update plan for current law (GUST etc.) prior to paying out. I do not think you need to terminate the plan again.

[Alf]

I agree that an amendment is probably smart. Technically, the plan has to reflect all laws in effect as of the plan's termination date, though, so suggesting an amendment conceeds that the plan should be reterminated, doesn't it?