Where to start?

[Guest jbf]

Back in 1981, my one-participant corporation (ABC, Inc.) had a good year and my accountant (Sam CPA & Associates) set up a retirement plan for me. He obtained an EIN for the Plan and deposited funds in a brokerage house under the name of ABC, Inc Profit Sharing and Pension Plan with me as the named trustee. There is a photocopy of a 38 page document in my file titled "Qualified Retirement Plan and Trust" that is not otherwise identified.

A couple of years after that, the corporation was discontinued and my accountant disappeared.

I'm assuming that I probably have a 401(k) defined-contribution plan based on a possibly pre-approved Prototype Plan with "Sam CPA & Associates" as the Plan Sponsor. Further, I assume that there have been no amendments or restatements nor have annual 5500 returns been submitted although the total plan assets exceeded $100K in 1997 or 1998 when I transferred in assets from another Plan.

As I turned 71 in 2010, I want to discover and make the necessary corrections to this Plan before taking any distribution. I may want to set up a new 401(k) for my current company (XYZ, LLC; taxed as sole proprietor) and transfer assets into that first.

I am at a loss for how to approach this to minimize penalties. Any guidance would be greatly appreciated.

Thanks.

[Ron Snyder]

Your choices are:

1) Trust strangers on a bulletin board who don't even use their own names, or

2) Obtain the services of a qualified professional (in this case an attorney) who is familiar with the various issues and programs available with respect to your situation.

Take a wild guess which approach I favor.

[Bill Presson]

1) Trust strangers on a bulletin board who don't even use their own names, or

Otherwise I agree with vebaguru.

[Jim Norman]

I'm posting under my real name, but I agree you need to hire an attorney familiar with ERISA, qualified plans, and the various IRS corrections programs to help you evaluate your situation and decide on an appropriate course of action. There are significant penalties for failure to file 5500 forms, and significant tax consequences for loss of the plans' tax-qualified status.

There are plan consultants and administration firms that could help you with a lot of the compliance work, but good ones will tell you to begin with legal counsel.