User fee waived?

[R. Butler]

Small employer adopts a new comparability profit sharing plan, effective 01/01/01. Its a Corbel volume submitter, so we are filing a 5307. Generally we don't recommend that the Plan Sponsor pay the extra money for a determination on the average benefits test. However, it seems to me that this Plan qualifies for a waiver of the user fee. I assume that the waiver applies to the extra the average benefits test too. Is that assumption correct?

If it the waiver does apply to the average benefits test, is there any reason not to request the determination letter?

[actuarysmith]

I was under the impression that the waiver of the User fees applied to plans effective after December 31, 2001.

It applies to requests made during the first five years. It is limited to employers with less than 100 employees.

[R. Butler]

I am fairly certain it is for requests made after December 31, 2001 (EGTRRA §620(e)).

[actuarysmith]

Richard-

I think you may be correct. In that case, I would recommend that you file your plan. No user fee would apply, but you would have a letter.

Is this a great country or what?