2009 Final Form 5500-EZ question

[Guest jmrodrig]

I have a takeover one person DB plan that has an end of year valuation date. The owner would like to terminate the DB plan (termination date of 12/01/2009)...but wishes to minimize the procedure as much as possible. The owner would like to make a minimum contribution for the 2009 plan year on 12/30/2009 (we plan to change the valuation date to beginning of year to accomplish this). Then all assets would be liquidated on 12/31/2009.

The 5500-EZ would reflect the contribution for the plan year and would also show the trust value of zero on 12/31/2009. However, the Schedule SB would show the valuation date and results as of 1/1/2009.

Can anyone see a problem with this approach? Does the mehod seem do-able?

Any and all help would be appreciated.

Thanks.

[ScottR]

Everything sounds good to me. I believe we have blanket permission to change the val date in 2009, even though the plan is terminating (unlike the pre-PPA rules).

The only question I have is whether a deposit made on 12/30 will clear in time for you to totally liquidate the investment account on 12/31. I would move the dates of deposit and liquidation up a few weeks.

.. Scott