GUST and EGTRA plan restatments for a terminated plan

[Guest smhjr]

It is my understanding that even if a plan has terminated it still needs to be restated to be in compliance.

Specifically I have a client that terminated his profit sharing plan and the final 5500 filing was submitted for his fiscal year end August 31, 2001. Now the document restatment has popped into my in basket and I am being asked what the effective date of the restated document is. My gut feeling says that it would be effective September 1, 2001, but that is after the plan is terminated which just seems "funny".

Any thoughts?

[Blinky the 3-eyed Fish]

Why do you think the restatement date should be 9/1/01? The situation is that you need to make the document compliant for the years in which it was operated contrary to the laws in effect at the time. In general the GUST restatement should be effective to the first day of the 1997 plan year. I would think you document provider will have coded those sections that were effective earlier or later.

You may still be able to get away with a slap-on amendment, but I am not sure how valid it may be.

[mbozek]

A qualified plan must incorporate all amendments required for the year in which the plan terminates. If the plan terminated in 2001 then it would be required to have all the gust amendments incorporated. If the plan is submitted to the IRS it will be required to make such amendments. I do not understand what u mean by document restatement. EGTRRA amendments should not be required if the plan terminated in 2001.