Cash Balance Sample Document

[David MacLennan]

Was wondering if anyone knows where a cash-balance sample document (single or occasional use) could be purchased. I have checked with some of the more popular providers and can't find one. Only PenDoc said they would have one available, but late Summer at the earliest. Client does not want to use an attorney. I would prepare the benefit and actuarial related sections with the usual caveats about seeking legal counsel. Seems like one could convert a regular DB document to a cash balance without too much modifications, but not having done it I may be oversimplifying.

[Guest RSNOW]

I know Relius/Corbel will process a cash-balance plan document for you on a one-time basis if you complete their online checklist. They charge a higher processing fee than normal for cash-balance plans (around $1400 total I think) plus they don't specifically have a Volume Submitter letter on the cash-balance plan, although they suggest you try to submit it to IRS under the Volume Submitter $125 User Fee and see if it gets approved at that lower user fee. If not, client would have to pay the higher customize plan doc User Fee.

[Guest Keith N]

If your design is on the aggressive side, I would insist that your client uses an attorney and not just any attorney, but one who knows how to write a cash balance document. If your client wants to cut corners on an aggressive design, I would wonder if you really want them as a client.

How much support do you think you will get from a on-line document shop when a participant is threating a law suit due to an interpretation? What will you do when the IRS comes back with their request for changes? I think the client will end up spending more trying to work within a "cheap" prototype than they would if they just hired an attorney to begin with.

If you are doing a "plain vanilla" cash balance plan where everyone gets the same benefit and you are not pushing benefits to your HCEs you may be fine with a "canned" document, but even then I would tread carefully.

[Kirk Maldonado]

I concur wholeheartedly in Keith's advice.