EGTRRA Restatements Terminating Plan

[perkinsran]

If a plan is terminating, does it have to be restated under the EGTRRA Restated documents? It is current wiht all amednments except for the final 415 limits.

[ERISAnut]

Hell,

That is a good question. It has always been my understanding that the language in the plan must be brought current. Of course, an EGTRRA restatement may serve as a catchall in many instances, there is nothing to suggest that the actual restatement is a requirement.

[John Feldt ERPA CPC QPA]

Right, you don't have to restate. In fact, a mere restatement to a pre-approved plan will not quite get you up-to-date.

Your 415 regulations amendment is still required and an amendment for the HEART act (passed in June 2008) is required too. That needed language is not automatically included in the EGTRRA pre-approved documents.

If this is a pension plan (money purchase, target, of DB plan), then you may have other amendments to do as well.

[Guest SVA Retirement Plan Svc.]

What about the HEART Act Amendment on Terminated plans? Example: Plan terminated March 31, 2008, but all assets not gone yet....do they need to readopt the PPA Term Amendment that includes the HEART languarge? The one they signed included the Hurricanne Relief language.

[John Feldt ERPA CPC QPA]

The date of plan termination is generally the last date you need to look at for law changes that need to be considered for amendments to the plan (although a rare exception could apply). I would not be concerned about trying to add language to a plan for law changes that occur AFTER the date of plan termination, even if the law has a retroactive effect. Just my opinion.

[Guest Sieve]

I'd agree with J4 re: post-termiantion law changes -- as long, that is, as distributions all occur within 1 year of plan termination.

[John Feldt ERPA CPC QPA]

Or if later, within a reasonable time period after the Form 5310 application receives its favorable determination letter (which may take a year or more just to get that letter sometimes) - assuming the 5310 application was filed within a year of the plan termination date.