4980(d) Qualified Replacement Plan

[JAY21]

A rare plan that is still over funded in this market is interested in using the qualified replacement plan (Profit Sharing) approach under IRC 4980(d). They will meet all the requirements (e.g., 95% of current participants will benefit, 25% or more of the excess will be transferred).

Logistically, since they are moving over a portion of the excess assets not attributable to any particular participant, so it's not all participant rollovers, does this then necessitate filing Forms 5310-As with the IRS giving the IRS a 30 advance notice of the transfer of excess assets ?

Thanks in advance for any opinions.

[Guest KVAlbert]

A rare plan that is still over funded in this market is interested in using the qualified replacement plan (Profit Sharing) approach under IRC 4980(d). They will meet all the requirements (e.g., 95% of current participants will benefit, 25% or more of the excess will be transferred).

Logistically, since they are moving over a portion of the excess assets not attributable to any particular participant, so it's not all participant rollovers, does this then necessitate filing Forms 5310-As with the IRS giving the IRS a 30 advance notice of the transfer of excess assets ?

Thanks in advance for any opinions.

Jay21,

Did you ever find an answer to this question?

[SRM]

Do you file a 5310-A to report a transfer to a qualified replacement plan?

[JAY21]

I had received some mix feedback on this one. Some people said their ERISA attorneys said "no need" and some felt like it was needed. We have tried to error on the side of caution so we have been filing them (one 5310-A for each plan).

[DMcGovern]

It's about 2 years later....any updates to this question?  Anyone discussed this with the IRS?

Thanks in advance!