Switch from Prototype to IDP

[bvhea]

Client previously had traditional defined benefit plan using a standardized prototype document. Plan is converting to a cash balance plan using an individually designed document. Client is in Cycle C.

1. Do the EGTRRA good faith and Mandatory Distribution amendments, whcih were adopted by the prototype sponsor, have to be readopted as part of the restatement to a cash balance plan?

2. When submitting the cash balance plan for a determination letter should all prior prototype adoption agreements be submitted or just the most recent (GUST) adoption agreement with the IRS Opinion Letter?

[J Simmons]

Client previously had traditional defined benefit plan using a standardized prototype document. Plan is converting to a cash balance plan using an individually designed document. Client is in Cycle C.

1. Do the EGTRRA good faith and Mandatory Distribution amendments, whcih were adopted by the prototype sponsor, have to be readopted as part of the restatement to a cash balance plan?

The new documentation needs EGTRRA provisions. The prototype documents (and the EGTRRA good-faith adopted to go along with it) are being displaced, and will not apply once the IDP cash balance document is signed. The plan needs EGTRRA provisions. So if EGTRRA provisions are not integrated into the main IDP document, you'll need to adopt an EGTRRA good-faith amendment that refers to it applying to the IDP cash balance document.

2. When submitting the cash balance plan for a determination letter should all prior prototype adoption agreements be submitted or just the most recent (GUST) adoption agreement with the IRS Opinion Letter?

All such documents dating back to plan's inception, or most recent favorable determination letter (if the plan has one).

[Blinky the 3-eyed Fish]

A submitted document must contain everything in that document as prescribed by the appropriate cumulative list. You cannot have a slap-on EGTRRA amendment. That, like and other items on the CL, must be part of the document.