Determination letter filing deadline

[Belgarath]

Having a little debate on a takeover plan. I'm always willing to believe I'm wrong, so here goes.

The plan is new for 2005 - calendar year plan and fiscal year. It is a DB plan, based upon an approved VS document, but using a modified compensation definition that makes it fall outside of the safe harbors and the current VS language, so we are requiring that they submit for a determination letter as a condition of our performing TPA services.

As I read the RP 2005-66, this falls under the 5 year individually designed plan deadlines, which are dependent upon the last digit of the EIN. So let's just suppose it is 7. This would be "Cycle B" and therefore must be filed by 1-31-2008.

Filing currently (this year) on an "off cycle" is an option, but I don't find any specific deadline for this, since an off cycle filing is voluntary.

Any disagreement? I guess as a further question, do you see any benefit here to a current off cycle filing? I can't see any other than perhaps getting a quicker response. But the RP specifies that off cycle filings will only be reviewed once ALL on cycle filings have been reviewed and processed, so it could actually take longer than waiting. Maybe I'm missing some important point.

Thanks in advance.

[Bob R]

One important point. Under Section 17.09 of Rev. Proc. 2005-66, you're still entitled to use the 6 year cycle. And, I'd sign Form 8905 just to be safe. The modifications you make don't sound like items you can't have in a pre-approved plan (it's just that they aren't in the pre-approved plan you used for GUST).

Aside from that, if you go under the 5 year cycle, I agree that it doesn't make sense for an off-cycle submission, especially where the general deadline is 1 year after the off-cycle submissions. If there was a spread of 3 or 4 years, then you may want a letter - but that's a very subjective call. And, as you pointed out, there's no telling how long it will take for an off-cycle submission to be approved.

[Belgarath]

Thanks Bob.