Terminating plan not amended or restated, steps to take

[Guest jc1457]

Hi,

We just picked up a new client. The client has a profit sharing plan that he wants terminated asap. The plan document has not been amended since 2004. The client was misinformed and did not realize that amendments were necessary - he has been acting as though the plan was terminated for some time.

Some of the plan assets have been distributed - but most are still in tact. This is a 2 person plan (1 owner 1 employee) - I believe the employee received a distribution from the plan in March 2010.

We are going to update the plan for any missed amendments and file under VCP. My question is - is it possible to avoid restating the plan? If the employer adopts a termination amendment as of of February 1, 2010 (employer would sign this amendment with today's date) - would a restatement be necessary since the plan terminated before the restatement deadline?

This is a small start up business and any fees we save this employer would help him out. My thoughts was to update any missed amendments, adopt a termination amendment as of 2/1/2010 and file under VCP.

Thanks for any help.

Linda