Guest jhilliard Posted December 16, 2003 Posted December 16, 2003 We have been appointed Agent of Record for a new client; in completing our initial research of their retirement program several issues arose. 1) 5500 has not been filed since 1999 2) No amendments or updates have been prepared for the plan document since 1999 3) No testing has been completed since 1999 As you can see everything revolves around 1999, this client was in a TPA environment and thought they had changed to be fully bundled with the provider. The TPA has a notice terminating their service in 1999 but the plan was never converted to be fully bundled (i.e. testing, 5500, plan doc) with the provider (who was also the provider in the TPA environment). Has anyone ever experienced this type of blunder and can shed any light on how bad the IRS is going to whack them for fees? Once the details have been identified where do you start with the corrections? Can I assume the plan is now in a non-qualified status? I know we can't but I'll ask the question anyway: Can we simply amend the plan to be compliant with the latest and greatest rules and hope for the best when we submit this year 5500? Any help you can offer would be great. Hopeless in pension land!
Lynn Campbell Posted December 17, 2003 Posted December 17, 2003 The most recent amendment to the Plan - when was it done, on a prototype or what type of document? If you meet the IRS rules in Rev. Proc. 2003-72, you may be able to amend now for GUST and submit by 1/31/04. What sort of plan is this?
Guest jhilliard Posted December 17, 2003 Posted December 17, 2003 At this point I am having trouble obtaining a copy of the document, the sponsor is looking for it now. The plan is a Profit Sharing plan with 401(k) deferrals. The plan is a small one (approx 40 particiapnts). Lynn you mention Rev. Proc. 2003-72, where can I see this on line? can you give me a link or address? I will post what the last amendment was and type of document once I receive a copy of it. Thanks
WDIK Posted December 17, 2003 Posted December 17, 2003 Handy Link. ...but then again, What Do I Know?
Mike Preston Posted December 17, 2003 Posted December 17, 2003 Try this one and search for Revenue Procedure 2003-72: http://www.legalbitstream.com/irs_materials.asp?pl=i3
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