Missing Documents? Idea's?

[Erik Read]

Okay - worst case scenario - you are a financial institution, not a TPA, you have a client who opened an account with you in 1997 by signing at that point a document that "certified" the trustee powers, and indicated that their plan was established in 1988.

Now - the client has changed CPA firms, and the new CPA would like to perform the annual calculations, but needs the document to follow the formula - YOU DON'T HAVE A COPY, the client seems to have lost their's if they ever had one, and the prior custodians seem to think that the docs are the responsability of the new custodian (you).... now what?

Has anyone ever had a situation where you cannot find the plan documents as originally drafted? Client is a sole-prop and files 5500 EZ each year.

Idea's? Suggestions? In the event we need to go to the IRS or DOL - who would be named in the filings as the original preparer if we are not absolutly sure ourselves?

Thank.

[JanetM]

The sole proprieter should have some documentation of the calculation in his prior tax returns. The prior CPA should have some idea of what formula was used.

Since this is sole proprieter with 5500EZ - the most that could be contributed to a DC plan is set by the IRC. If this is a DB plan the CPA should not be doing any calculation.

Tell the sole proprieter to have the CPA look at prior years tax returns. (if this does not answer the questions - find a new CPA)

[Erik Read]

Thanks Janet - I'm more concerned about what to do with the no document issue than the calc of the contribution. With all the RA's that are going to need to be done soon - and no document to know what needs to be changed, I'm concerned we'll put the plan into a disqualified state.

Any one have ideas?

Thanks

[Larry M]

until such time as the old documents are found, consider drafting a plan amendment which states how the allocations (assuming this is a defined contribution plan) are to be made in accordance with the current wishes of client or the presumed method used in the past.

[Erik Read]

Thanks Larry - that's what I was looking for. I had actualy just thought about doing a resolution/amendment on our end the same time that your reply came through.

Now - on to the topic of "finding" documents, if they were filed with the IRS for determination, would someone be able to get a copy from the IRS as a source? Just a thought.

Thanks.

[RCK]

Who actually drafted the original document? If it's not a prototype, I would expect a law firm to be involved. If so, they should absolutely have a copy. If not, the sponsor has to look a little harder.

Getting help from the IRS? I don't know anyone who has done that.

If that all falls through, and you have a good sense of what all the plan provisions are, then I would definitely go with the amendment/restatement route as suggested by Larry M. I don't think that you are going to be able to get a determination letter without being able to track back to the original document, but that might be the least of your problems right now.

RCK

[Erik Read]

Thanks for the reply.

We're not sure who drafted the original document, that is a looming question. I'll post updates if they occure and I think they're worthy, otherwise, we'll see what happens.

[Guest stryan]

As I recall, one of the requirements of operating a QUALIFIED Retirement Plan under 401(a) is to have a WRITTEN and signed plan document. While the Plan Sponsor (employer) may hire a whole host of service providers to support the operation of plan, it is typically the responsibility of the Plan Sponsor to have a copy of the plan doc on file.

Good Luck with the A&R and avoid any IRS audits.

Personally, I don't know how to properly remedy the situation other than somehow locating a copy of the plan doc from a prior (unmotivated) service provider.