GUST AND RAP

[Jilliandiz]

Client is terminating their 401k plan. IRS submission for approval was done, and they have received a letter back from the IRS asking the following:

Explain how the plan is entitled to the entended RAP for GUST?

Can someone help me on explaing what that means?? I don't know what RAP even means?

Thanks

[Leopurrd]

RAP means Remedial Amendment Period. I'm assuming that they amended after 2002 (i think) for GUST - I believe that you could only rely on the extended RAP if you signed a Good Faith Amendment? the IRS probably wants this signed/dated document.... (if you meant "extended", not "entended"??)

I'd appreciate any comments from the board on this as I'm not great with document law/design!!!

[Blinky the 3-eyed Fish]

They could also receive the extension if their pre-GUST document was on the approved list (or whatever it was called; I can't remember).

[Guest Robin.Wolf]

Does this help?

http://benefitslink.com/IRS/revproc2000-27.html