Late document amender

[Santo Gold]

I think I have this right, but I was hoping someone would verify:

401k plan started in 1997. Had a document at the time but never amended. 40 participants. Therefore, they need GUST, EGTRRA, RMD, Inv dist. We will have all the documents drafted, signed and dated (current dates) and follow the VCP submission process. Compliance fee is $1,000.

So far so good???

Also, is it required they they also request a document determination letter (we are using a prototype) and, other than the compliance fee, is there any additional up front or post review government fees/penalties for using VCP?

Thanks

[namealreadyinuse]

The real key is what they did administratively. For example, one amendment you are adopting is repeal of multiple use. If they tested using multiple use, you have to correct the operation of the plan. That probably involves monetary correction and earnings and could involve another VCP correction and new sanction. It may be a bad example, but that is the problem with nonamenders most of the time.

You may avoid a determination letter if you are using prototype documents like you can for model amendments, but if you can't the IRS user fee is another expense.

Finally, are you comparing the saction for the old program or new program? Which is cheaper for you. On Septermber 1st, I belive you are required to use the new system.

[namealreadyinuse]

Also, I don't think you should (can) submit signed documents as nonamenders. The VCP is asking the IRS for permission to sign. Also, they could conceivably ask for an obscure change although if there is no determination letter application, it would seem remote.

How does everyone else file nonamender documents: executed or proposed?

[WDIK]

How does everyone else file nonamender documents: executed or proposed?

Executed.