Must an employer using a non-standardized prototype document file for

[Guest Mark Manning]

Must sponsors using non-standardized prototype document file for IRS Determination Letter? Have gotten conflicting answers from administrator regarding circumstances for which filing is neccessity/encouraged.

Thanks

Mark Manning

[Guest RARogers]

I think it would be imprudent not to file. It's a pain, which is why some administrators who have to do a lot of the work will say it's not necessary, but a nonstandardized plan has no assurance from the IRS that the plan is ok unless it gets a determination letter.

There are all sorts of things that could go wrong in completing a nonstandardized prototype (what if the person filling it out doesn't know what he or she is doing, or makes a mistake in com;eting it - these things are not slam dunk documents), so it really needs to go to the IRS.

[Guest Arch]

I agree with RARogers that it is best to file with the IRS. The question you had was must you file. The answer is no! You are not required to file for a Determination letter for a NonStandardized Prototype. You do run the risk, however, of what RARogers explained. What if someone didn't know what they were doing and completed the document incorrectly. I say it is best to file even though you are not required to.

[MWeddell]

While I agree that in general obtaining a favorable IRS determination letter is not legally required (but merely prudent), I believe it is required if the plan sponsor has taken advantage of the extended GUST remedial amendment period.