determination letter filing

[Belgarath]

Ok, say you have a DB plan, IRS approved Volume Submitter. For purposes of benefit accrual, the document uses 3 year average participation comp., except to the extent that there isn't three years of participation, in which case it goes back to employment years to the extent necessary to get a 3 year average.

Now suppose an employer wants to do a minor modification to use only participation compensation.

It would seem that this could be handled as a minor modification on a 5307. But I'd like to see how folks would handle this.

Would you submit now, off-cycle? Wait to file on-cycle? Other?

I might actually have to break down and go to some conference (a great sacrifice, because I HATE business travel) where there's an opportunity to just chit-chat with other folks about some of this stuff in general - anyone have recommendations about one that might particularly focus on 2005-66 and related issues?

[Blinky the 3-eyed Fish]

Even though I have seen some documents that allow for only compensation while a participant even if a person has participation less than the averaging period, I recall a cite provided by Andy that questioned its validity. I don't have the time though to research anything myself.

Let's say though you go ahead and make that modification. You definitely want to submit within the proper period to keep assure yourself a determination letter reliance. (I think you have to submit within 90 days after the plan year in order to get reliance for that year, but I could be slightly off.) If you wait to submit, you effectively are operating a plan without a determination letter and I wouldn't recommend that.

Try any of the larger ASPPA Conferences for some broad topics. I bet the upcoming one in Las Vegas this summer will have a session on the restatement process.