Incoming rollover

[Bird]

A distributing plan administrator refuses to make a statement as to whether the plan is intended to be qualified.

Does anyone have any thoughts/experience on alternative acceptable documentation - SPD, check stub with "XYZ 401(k) Plan" showing the distributing plan's name - so the recipient plan can "reasonably conclude" that the distributing plan was qualified?

[Guest BXO]

Why not a note from the participant?

[Below Ground]

5500 Lines 8(a) and 8(b) use Code 3C if plan is NOT qualified. Other codes also define the plan, somewhat.

5500 filings can be easily obtained from FreeErisa.com.

Just a thought.

[JanetM]

Does participant have copy of prior plan SPD? That should answer the question.

[Belgarath]

I like Janet's idea. This should allow the new Plan Administrator to "reasonably conclude" that it is ok.

Someone could perhaps point out to the previous PA that IRC 1.401(a)(31)-1 mandates that a plan cannot "substantially impair" a participant's right to elect a direct rollover. Whether this refusal rises to that level I can't say, but it might be enough to sway the PA.

[Bird]

Thanks for the responses. We are trying to get an SPD and/or 5500 filing. Fidelity is involved, apparently as the custodian, and I think the participant is incorrectly trying to get them to provide the documentation. They're being no help whatsoever; of course it's not their job but at the same time that's their MO.

[pmacduff]

I thought that the receiving plan/administrator could "reasonably rely on the participant's representation" that the rollover $$ comes from a Qualified Plan?

So - is the participant trying to make that determination and not having any luck?

[Bird]

I think that the "reasonably rely" language applies to outgoing rollovers; that is, the distributing plan may reasonably rely on the participant's representation that the rollover is going to a qualified plan or IRA.

[pmacduff]

I was looking something else up in Sal's books and I found the attached in the rollover section. Our hard copy edition is old as you can see, but I thought this might be helpful...

DOC070315_002.pdf

[Guest BXO]

Reasonably concluding that an incoming rollover is qualified is in 1.401a31 (and the attachment in the post above) and

reasonably relying is allowed when you are making the rollover disbursement (you rely that it is going to a qualified plan or IRA and you don't need to withhold tax.