DB Plan & Affiliated Service Group

[JAY21]

Existing DB client has some ownership in another entity that may or may not constitute an Affiliated Service Group (yes, it would have been nice to know that upfront, we did ask). The plan has been around a few years already. Will the IRS issue a PLR on just an Affiliated Service group issue by itself ? Or does it have to be part of a plan doc qualification submission ? Thanks.

[SoCalActuary]

I may be repeating the obvious, but:

When we have these situations and we are not certain of the outcome,

we get an ERISA attorney to do the fact-finding and issue a letter.

Then the IRS would have to fight with the attorney if they disagree.

If the attorney advice is to get a PLR, then the client asks them to do so.

[Belgarath]

You might also look into filing for a determination letter on a form 5300 - this has an option to request IRS determination of ASG status. But I second SoCal's advice to have an attorney make the determination.

[JAY21]

Belgarath, I certainly don't disagree with having an attorney look at it, but if you do file the 5300 for a determination letter can you only ask for a determination letter on the Affiliated Service Group as a stand-alone issue or is part of the request to ask for a qualification letter on the plan. The problem with the latter is that I think you are supposed to file within your "cycle" or jump through some hoops to file your plan doc with an off-cycle procedure that I think puts you to the end of the line anyway.

I guess I'm still not clear if any IRS ruling on an ASG issue has to be tied to plan doc submission or can it stand alone (kind of like a PLR).

[Belgarath]

Although I've never done it, I read the form and instructions to allow only applying for determination of ASG status. However, assuming that is correct, which it may not be, I have no idea where this falls in the heirarchy of IRS processing.