Guest JJC Posted June 23, 2003 Posted June 23, 2003 Does anyone know of a provision which allows a plan to apply for a determination letter, but if a favorable letter is not issued, the plan is null and void (as if it never existed)? Thanks
Everett Moreland Posted June 23, 2003 Posted June 23, 2003 Provisions to that effect are often in plans. The provisions allow contributions to be returned to the employer if the IRS does not issue a favorable letter.
Everett Moreland Posted June 23, 2003 Posted June 23, 2003 Because you posted your question on the governmental plans bulletin board, I should have added that careful drafting is needed to avoid giving employees a contract right to the plan benefits. If union employees are eligible to participate in the plan, I would also consider addressing this in a supplement to the collective bargaining agreement.
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