Not a late amender - a late filer!

[SheilaD]

A cash balance plan was adopted by my client in late 2008. EIN ends in 3 so deadline for filing for a D-letter was 1/31/2009. They were sent the signature pages for the submission and, between one thing and another, it fell through the cracks. Client never sent back the pages and we did not keep an eye on the deadline.

What options do I have? If I read the guidance correctly, I can file off-cycle now but will not have reliance for the first plan year. If the plan had been adopted for 2009 I would qualify as a "new" plan - unless there is some special rule that I can't find that extends the deadline for new plans adopted right at the end of the cycle?

What would you do?

Thanks for your thoughts.

[John Feldt ERPA CPC QPA]

Your deadline is not 01/31/2009 for a new plan adopted late in 2008. This is definitely the more confusing part of the 5-year cycle. Go ahead and submit the plan now. Maybe another poster can explain Rev Proc 2007-44 better (or correct me if I am wrong).

Look at examples 7, 8 and 9 in section 15, as the end of the 401(b) remedial amendment period matters with new plans. The way I read it is that end of the initial cycle for your new plan is really 01/31/2014 (I could be wrong). I think you will still have reliance for the plan's first year even if you submitted by 01/31/2014, but I would submit now anyway.

[SheilaD]

Your deadline is not 01/31/2009 for a new plan adopted late in 2008. This is definitely the more confusing part of the 5-year cycle. Go ahead and submit the plan now. Maybe another poster can explain Rev Proc 2007-44 better (or correct me if I am wrong).

Look at examples 7, 8 and 9 in section 15, as the end of the 401(b) remedial amendment period matters with new plans. The way I read it is that end of the initial cycle for your new plan is really 01/31/2014 (I could be wrong). I think you will still have reliance for the plan's first year even if you submitted by 01/31/2014, but I would submit now anyway.

I just came back from vacation and read your response. I re-read the examples that you gave me and it makes sense to me. thanks for your thoughts.

S