vcp submission without providing plan document

[jlea]

One of my clients experienced an operational failure in their Simple IRA plan and we've been working through the issue, with an eye to submitting a VCP request. The Simple is a prototype arrangement and they were never given a copy of the Plan document. They have their Adoption Agreement, their SPD, and notices that they diligently distributed per the 408(p) rules. The custodian says they don't have a copy of the Plan document. Obviously, we'll pound the doors on this issue with them - but, worst case, let's say we can't put hands on it. How much of a snag is that likely to be? Anyone had experience with not being able to produce requested documents?

[J Simmons]

How much extra would it cost to add a document failure to your VCP submission?

[jlea]

Hmm, good question. Plan work can often be like peeling an onion, no? Always another layer . . .

[jlea]

I guess I can see what you mean about it being a document failure (what a completely appropriate label). But when I review the terms of Rev Proc 06-27, I can't even imagine how the IRS would respond. I mean, this isn't we forgot to do good faith EGTRRA amendments - it's we have an adoption agreement and an SPD but we've never had a copy of the plan document and apparently neither does the Custodian/TPA who sold us the product and administers our plan.

I remain hopeful that, if we go up the chain high enough at the custodian/tpa, we will find someone who can give us a copy of the plan document.

All this for a Simple IRA that will terminate at year's end.

Any thoughts or responses? Thank you in advance!

[Peanut Butter Man]

My experience with this situation is that you will receive a letter asking for the plan document, and if you can't provide it, the submission will be returned. No document = no plan. Since you have the adoption agreement, have you thought about tracking down who wrote the prototype and asking them for a copy of the document.

[J Simmons]

PB Man,

Is your experience that you could provide an adoption agreement but no prototype, or no document at all?

[Peanut Butter Man]

Adoption Agreement was only 4-5 pages long, and took a chance sending it in to the VCP program when I couldn't obtain a copy of the basic plan document from the prior TPA. IRS sent it back. Finally able to obtain a copy of the basic plan document by getting creative and figuring out who actually wrote it, and got a copy from that source.

[Guest amycavanaugh]

also if you know the provider (either the vendor or the document provider) and it was part of their prototype plan-google search it, there are tons of documents posted to the web. Good luck

[jlea]

Happily, I was able to find someone at the sponsoring institution with whom I could talk function over labels. In so doing, we were able to identify the documents needed (they call the plan doc "Terms and Conditions," which is included in a packet that otherwise contains marketing information).

I'm grateful to have this hurdle crossed before the VCP submission.