Non-amenders?

[Guest MEvans]

How are others handling employers who failed, for whatever reason, to sign a GUST certification by the February 28, 2002 deadline? Has anyone heard any rumblings from the IRS as to whether they have set a fee for GUST non-amenders for VCP correction?

Rev. Proc. 2000-20 is somewhat vague. One reading seems to support a position that an employer who currently has an old M&P or VS plan can rely upon the extension of the remedial amendment period if the sponsor filed for a GUST letter, and can adopt any sort of plan within the extended period. Does anyone else read this the same way I am?

[Mike Preston]

Absolutely. And it goes even farther than that. Even if the prior document provider didn't submit before 12/31/2000 for an approved GUST letter, there may be an organization that did submit, on behalf of that document provider, for a letter of its own. You might find this, for example, where a document provider sold their business to another firm, with its own documents. The acquiring firm would not have had to submit two sets of documents, one for the acquired firm and the other for itself. It could just rely on its own documents. So, check the status of the firm that provided the original document. If it appears on the IRS list (the list is published on the IRS web site - warning - it is big, about 200 pages in a pdf file with a very small font), the plan sponsor has until at least 12/31/2002, maybe later. If it doesn't, then see if they sold their business to somebody who appears on the list in a way that allows the plan sponsor to piggy-back onto a different document provider.

[nancy]

Does this mean that if takeover a plan now and they do not have a GUST restatement but were on another vendor's M&P or VS document, they can adopt our Prototype with no problem?

[Mike Preston]

Yes, they have until the deadline associated with their prior provider to adopt ANY plan, yours, theirs or MINE!

[david rigby]

Does this help?

http://www.benefitslink.com/IRS/revproc2002-35.shtml