Document Retention

[Randy Watson]

Do the Code or the Treasury Regs contain any qualified plan retention provisions? I know ERISA 107 and 209 address record retention, but this is not an ERISA issue.

[Peter Gulia]

For an employer that administers its retirement plan, some key record-retention tax regulations are:

 31.6001-1 to -6 (wage reporting and withholding),

 301.6058-1©(4) (“Records substantiating all data and information required by this section to be filed [Form 5500, to the extent required by IRC § 6058] must be kept at all times available for inspection by internal revenue officers at the principal office or place of business of the employer or plan administrator.”)

More generally, a taxpayer keeps records to support its positions in its tax returns. For example, to support a Form 1120 deduction for § 401(k) contributions to a qualified plan, an employer would keep records that each year’s ADP test was performed or why it was deemed met.

A person keeps a record as long as it could be relevant to assert or defend any claim, tax return, information return, or report that the taxpayer, employer, or payer filed or was required to file.

Based on the differing limitations period for claims, assessments, and collections regarding different kinds of returns and claims, and different levels of accuracy or completeness, some practitioners suggest keeping a record for at least seven years after the close of the plan year or tax year (whichever is later) to which the record relates.

[Guest TrustButVerify]

Pension administrator record keeping question.

Payee worked with AT&T as of 1979, continued working for one of metro NYC baby Bell, and now works for Verizon. Completely continuous service. Payee always contributed to 401k/404c, before, during & after marriage. Payee married the prospective alternate payee ~ 1992. Need to identify and isolate pre-marital position. No records available from payee.

Payee's contributions to the 401k/404c prior to marriage were invested per salary and bonus payments allowed. Portfolio never rebalanced or borrowed against. Original first-in positions and their cost bases remain.

Need to identify premarital positionas well as the pricing and dividend history since, so as to determine the premarital position and exclude it in coverture. The premarital contribution period is 1979-1992, a period of tremendous market growth, and even more growth since!)

Question: What are the PA's record retention requirements (paper & electronic rqmts, respectively) and in your opinions, is there a likelihood the info will be got (from archives and via a cooperative PA)?

Clearly in need of a complete transaction history on the account, OR the final pre-marital portfolio and NAV & dividend history on those fund holdings since the marriage.

Any advice and insights are welcome. Thanks in advance.

TBV

[jpod]

Hopefully you can get evidence of an account balance immediately prior to or close to the marriage date.

Just out of curiousity, why would post-marriage earnings on the marriage-date account balance be excluded from the marital property? Assume it was not a retirement plan. Suppose spouse had $10,000 worth of Microsoft stock in a brokerage account at the marriage date, and he/she never sold it. Would appreciation in value during the marriage be excluded from the marital property? Are defined contribution pension plan accounts treated differently than other types of savings and investment accounts?