Restatement deadline when employer sponsors both a prototype DB and DC

[Guest Rudy]

We have numerous employers that have both a prototype DB and DC plan, drafted by the same document provider and sponsored by our organization. We have had the DC letter for nearly a year, and expect to receive the DB opinion letter shortly.

Is the restatement deadline 12/31/02 for the DC plan and 12 months after receipt of the letter for the DB plan, or are both deadlines 12 months after the DB letter?

I have been getting conflicting opinions on this, with the majority stating that both deadlines are 12 months after receipt of the DB letter. Additionally, I have read and re-read Rev Proc 2000-20 and 2000-27 in hopes of finding an answer, but have been unsuccessful.

Am I overlooking the obvious, having a stupid attack, or both? Thanks in advance for your input.

[mbozek]

I though the deadline was on a per plan basis and that employers need to adopt each plan separately. why cant the er adopt the dc plan by the end of 2002 and the DB plan after the sponsor gets approval?

[Guest Rudy]

This was my thinking exactly, mbozek. However, a handful of consultants and attorneys have stated that they both fall under the DB deadline. Thus my thread on the board. Thanks for your input.

[KJohnson]

Read announcement 2001-12 (I believe it was originally published as 2001-6). I believe you have until one year from the DB letter. Here is the example given in the announcement:

Example 3. Practitioner C sponsors three volume submitter specimen plans, Plans 1, 2 and 3. Practitioner C files applications for complete GUST advisory letters for each of the plans on June 1, 2000. Favorable advisory letters for Plans 1 and 2 are issued on November 30, 2000. A favorable advisory letter for Plan 3 is issued on March 15, 2001. Each employer who adopted (or certified its intent to adopt) Plan 1 or Plan 2 before the end of the regular GUST remedial amendment period is also deemed to have adopted (or certified its intent to adopt) Plan 3. Therefore, the GUST remedial amendment period for each employer who adopted (or certified its intent to adopt) any of Practitioner C's volume submitter specimen plans by the end of the regular GUST remedial amendment period is extended to March 31, 2002, provided the employer adopts one of Practitioner C's GUST-approved plans, another GUST-approved volume submitter specimen or M&P plan or individually-designed GUST amendments, and requests a determination letter (if required for reliance) by this date.

[KJohnson]

Here's a link to the announcement:

http://www.benefitslink.com/IRS/ann2001-12.shtml

[Guest Rudy]

Thanks KJohnson. The lawyers/consultants are usually right, but I like the peace of mind that comes with being able to verify their positions.