Terminating DB plan

[Guest Doogie61]

I have about a dozen DB plans (small one person type) that are on the balls of their ass financially and need to terminate their plan. If they want to close out the plan and roll assets out by 12/31/09 do they still have to restate or can we get away with "good faith" amendments?

Any input is welcome.....

[Andy the Actuary]

I have about a dozen DB plans (small one person type) that are on the balls of their ass financially and need to terminate their plan. If they want to close out the plan and roll assets out by 12/31/09 do they still have to restate or can we get away with "good faith" amendments?

Any input is welcome.....

According to the King James version of The Bible, Samson said, "With the jawbone of an ass, heaps upon heaps, with the jaw of an ass have I slain a thousand men." I suspect with the "balls of their ass" Samson would have opened a pawn shop?

[Effen]

I'm still trying to figure out where the balls of their ass is? If it involves a male donkey, I'm not sure I understand the analogy - but I agree it would be a bad place if you could somehow get there?

[Guest Doogie61]

Gee thanks for the sardonic comments....they were very helpful!

Sarcasm notwithstanding...does anybody have an "actual" opinion????

[Belgarath]

"The person who experiences greatness must have a feeling for the myth he is in. He must reflect what is projected upon him. And he must have a strong sense of the sardonic. This is what uncouples him from belief in his own pretensions. The sardonic is all that permits him to move within himself. Without this quality, even occasional greatness will destroy a man."

The wisdom of Maud'Dib aside - you should be ok with "interim" amendments. I believe Revenue Procedure 2008-6, in Section 12 (.06) and (.07), states that terminating plans do not have to be restated. I haven't checked the 2009 version to see if this carries over, but you should be able to check fairly easily.

And here it is, from 2009-6:

Termination prior to time for amending for change in law

.06 A plan that terminates after the effective date of a change in law, but prior to the date that amendments are otherwise required, must be amended to comply with the applicable provisions of law from the date on which such provisions become effective with respect to the plan. Because such a terminated plan would no longer be in existence by the required amendment date and therefore could not be amended on that date, such plan must be amended in connection with the plan termination to comply with those provisions of law that become effective with respect to the plan on or before the date of plan termination. (Such amendments include any amendments made after the date of plan termination that were required in order to obtain a favorable determination letter.) In addition, annuity contracts distributed from such terminated plans also must meet all the applicable provisions of any change in law. See also section 8 of Rev. Proc. 2007-44.

Restatement not required for terminating plan

.07 A terminating plan does not have to be restated. However, see .06 above.

[JAY21]

Anyone who quotes "Dune" is ok with me. Thanks Belgarath.